Define your target client
In our world (that holds inclusion of everyone as a virtue), selecting a target client is difficult, because (by its very nature) a specified focus is a deselection of everyone else. The reality is that you are selecting a focus for activity – not a parameter that must be attained before allowing inclusion. A target client doesn’t mean you refuse to consider clients who are outside of your niche. It does mean that you clearly describe the characteristics that separate your target from everyone else, and that you articulate why you are the best option for that client. If you aim at everything you hit nothing. Often we lie to ourselves by defining our intended target – after we see what we hit. A target client is merely a focused description; designating an optimum fit, but it is vital.
Sales Tip: Which clients to focus on?
Previous or current paying clients who were enjoyable to work with yet required the least time and pay the most money create a profitable and sustainable model. There are often auxiliary target clients who are not the focus, but should be recognized when encountered. If there are certain products or services that have a quick close timeline (or possibility of automating the entire sales cycle): ask the closing question upfront (when someone is interested in that product or service). Direct them to where they can solve the problem without you—and move on. Many times this type of ‘sale’ is a wonderful self-funded lead generation channel.
It is deliciously tempting to describe target clients that you wish to attract and sign up as clients, even though up till now… you have no clients like this target. STOP IT. Design your target client around past successes that have paid you money, not wishes. To choose where you’re heading you must accept where you’ve been. Start with remembering your favorite and least favorite clients. Ask yourself:
- Which clients hold your best and worst memories? Why?
- What details do you remember about them?
- How much did you make on this client?
- Did they give any referrals or were they a standalone client?
- If every client had to be modeled after just one deal, which one would it be?
Global Issue Online and Local Target Markets
The digital age has not yet reached an equilibrium in which local and online businesses play nicely together. Many online stores function more like a pick pocket – than fair competition (and vice versa). E-commerce requires no physical contact for someone to buy, which removes overhead cost. Face to face businesses can use the information on a website without ever giving them business. Compound that with the fact that many online stores are run by suppliers (wholesaler to the face to face business); the customer can often get a price that would be unsustainable for their local shop. Shoppers still seek personal face to face advice (we like to see and touch a product before buying), but we want to pay wholesale prices. The electronic age will be owned by those who can harness the in-person and electronic realms seamlessly.
Who they are (Quick Brainstorming Session)
- What are the steps to describing your Target Client?
First thing you need to come to grips with is that if you are going to have a target client, that requires your de-selection of everyone else to be your target client
This is not an all or nothing, this is merely a focus for whom you are aiming at.
Categorize your favorite (& least favorite) clients:
Client Name: _____________________________________ Good or Bad:________
Why do you remember them? ___________________________________________
How much did you make on this client directly: ________ by referral? __________
Client Name: _____________________________________ Good or Bad:________
Why do you remember them? ___________________________________________
How much did you make on this client directly: ________ by referral? __________
Client Name: _____________________________________ Good or Bad:________
Why do you remember them? ___________________________________________
How much did you make on this client directly: ________ by referral? __________
List the clients that you’ve made the most money on:
Name of Client: Approximate Profit:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
List the clients (or types of client/product or service) that you’ve make the least money:
Name of Client: Approximate Profit:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
List the prospects that you spent the most amount of time on, but didn’t make the sale:
Name of Client: Approximate Time:
1. __________________________ _____________________
2. ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
List the prospects that you spent the least amount of time on, but made the sale:
Name of Client: Approximate Time:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
What are the common characteristics of the clients that made the greatest profit?
Name of Client: Approximate Profit:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
What are the common characteristics of the dead prospects that took the most time?
Name of Client: Approximate Time:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
What are the common characteristics of the closed clients that took the least time?
Name of Client: Approximate Time:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
What products or services you’ve sold that had the least time & greatest profit?
Name of Client: Approximate Profit:
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
- ___________________________ _____________________
Finish these statements:
- At this point if I could choose my Target Client they…
- The Product/Service that has the highest profit to time invested ratio is/are:
After Brainstorming Sessions…
1. Filter the Categories that your Target Client can be grouped into:
Once you’ve had a chance to review your most memorable clients, begin to construct the widest ‘top of the funnel’ client type categories. Beginning of the sales pipeline/funnel:
- What category of client did you make the most money on?
- What prospect types demanded a lot of time, but never paid a dime?
- Which leads turned into quick and easy sales that required almost no time or energy, and yet created income?
- Which clients brought the greatest profit, and yet didn’t allow you time to do anything else while they were making a decision?
It is obvious that if a business is based on clients that take minimal time but produce maximum income—it will succeed (at least financially). Financial success may be the standard used on Wall Street, but long term profitability requires calculation of more details than just the dollars collected. Burnout and training replacements carry a high price tag (especially when the burnout being replaced is you).
2. Assess your Target Client’s motivations:
Through exercises like those listed above; the primary income channels should begin to rise to the top, and those who specialize in being headaches should be allowed to sink to the bottom. As you work your way down the selection funnel, there are a couple primary points of consideration:
- What was the real need the client had filled by giving you business? Don’t over simplify this point by listing what was on your sales order. One person may purchase to alleviate pain, while others may buy the exact same product to confirm they have the authority to make a wise decision (even though they may not fully understand the wisdom behind the decision). Comprehend the motivation that justified their feeling good about giving you money. Look for consistencies among the target categories that you are designing as your target.
- What current product best fits with these client’s motivation? The reason people purchase a piece of equipment may change over time. A system that was wildly successful when you were a sales person may not work at all – now that you are a sales manager. Your frustration is that you think your team is being lazy, when they are working harder than you in an effort to make you happy… all the while doing what needs to be done to get paid. What do you offer today that will most securely fit the fulfillment of the need resolved?
3. Describe and Define Your Target Client:
This is not merely a generalized overview of feeling or impression you have when you’re around that optimum client. This is a specific description of a fictional (but visualized) person who is described in such detail that they can be sought out and recognized when introduced. Once defined, this person is foundational in the design and creation of your communication style, and this person is used as the basis for the system you will follow walking a lead from their expression of interest to a point of decision. Though there are literally hundreds of categories that can be used in defining your target client, create a well-rounded description that makes sense to you and others.
- Personal demographic such as relationship status, gender, age, family make up, etc.
- Business demographic life including size of business, employees, industry, annual revenue, etc.
- My target client’s personal lifestyle which includes favorite foods, clothing style, vacations destinations, hobbies and free-time activities, etc. (Facebook?)
4. Assess your Reality:
Even if you only consider client groupings that you have experienced past success, there is still a chance that the target niche you are aiming at may not be realistic. There is a level of sustainability that is required. If your reality isn’t honestly assessed, your target client will need to be re-defined every few months… which will consistently take you away from the end goal of running your business. Be completely honest with yourself:
- Are there enough people in my target niche that need what I have to offer?
- Which competitors aim at the same niche?
- Can you share the market share, or how will you take over their share?
- Is there a specific segment of that niche you will specialize in more than your competition?
- Can they afford what I’m selling?
- Is your price point too high for them to afford?
- Is your price point too low for them to assume quality?
- Do I have access to my Target Clients?
It’s OK to have more than one target niche, but not to have multiple focal points for any single marketing campaign. Select one target client and design all your branded campaign specific marketing collateral around that one target. There is a good chance that the target client you select will have multiple subsets. Create a target client and move forward with a specific focus.