When starting a business, it is important to focus on a defined target audience and cater to that group. I made the mistake of catering to too many different people with too many different services at once. I realized that this didn’t work and it wasn’t efficient because my focus was too scattered. Long story short, the approach wasn’t effective because I was unfocused trying to manage too many services for too many people. My attention was split on 20 different services and consequently, my marketing efforts were scattered.
I started to focus my resources into core fields where I could provide the most value, like ecommerce solutions, website development and search marketing. Next was defining what kind of clients I would be able to provide the most value to. As you know from before, I wanted to work with everyone which left me open to clients that would not be a good fit and outcomes that would be not satisfactory to them. The focused approach reduced costs, and allowed me to focus my attention on the services that would help my clients grow.
By doing this, I was able to free up my time. Before, I had been helping clients crystallize their unformed ideas. Now, I was helping them execute and strategize on their ideas. There difference being that some people have ideas to do something without a clear understanding on cost and resources required. Another group of clients comprehend the cost, time and resources of their idea and are better suited to the value I could bring to the table. Second of all, with a focused offering to a defined target group, the demography I was targeting was more realistic in terms of their goals, potential costs, and was far easier to work with.
Define who your customer is
There were some lessons learned, a growing business has to define and its target market. With the target market defined the next goal is to reach out to that group. Some resource should be spent on researching other potential markets, but there shouldn’t be any resources spent on undefined groups. Because when a growing business starts to spend on undefined groups, there’s a higher percentage of waste. The 80/20 rule applies here, which follows that 20 percent of your customer base will produce 80 percent of your revenue. The other 80 percent then are not in your zone but are quite welcome, but marketing dollars are better spent on optimizing that 20% and growing it. Additional the cost to retain the customer outside of your 20% zone in the long run may not be sustainable, so focus on the 20 and slowly grow it out.
Sell the value to your target customer
The main reason customers buy your products and/or services is to solve their problems. Are you solving those problems? If you don’t have a clear idea about that then you’re not going to get the right results. People buy what they value, and usually what they value is the solution that solves a point of pain for them. So use your customer’s needs to formulate the solution that would best address their needs.