We can’t sell all of our products to everybody. If you’ve approached business with that mindset (“who WOULDN’T want my product?!?”) then you’ve been throwing away your money with ineffective marketing.
Businesses are more successful when they narrow their customer base, understand those customers really well, and ignore everything else. When I stopped writing content for anyone who contacted me, and focused on only 3 niches (B2B, real estate, finance), my productivity went up, my rate went up, the quality of my writing went up, and the quality of my clients went up. About once a year I pull out my customer list and compare it to where I thought I’d be and where I want to be.
Anthony Tjan wrote a post for Harvard Business School’s blog entitled “Want to Understand Your Customers? Go Psycho“. In his article, he talked about using psychographic information to figure out who your clients are (or who they might be) and to shape your offering and your marketing. In one excellent paragraph, he rightly points out that you may not have a lot of demographic information for a particular niche you’re planning to target but you may have some quality psychographic information.
Thanks to the openness and proliferation of social media, we can make pretty informed psychographic research where our demographic research may have fallen short.
Why not take a moment right now and draft a paragraph describing each of the target markets your business services. Then, think about what you can do for those audiences to add value to their lives.
In terms of the Business Diamond Framework, this is a key Leadership Function Diamond activity that influences every other aspect of your business.