book.chapter Step 1 – identify your ideal customers

It's a common pitfall among many companies; they fail to define the type of customer they aim to attract. This oversight can be detrimental to the growth and success of a business. If you're looking to proactively expand your business rather than passively receive orders, it's crucial to create a clear vision of your ideal future customers. Identifying your target market is the first step in this process. As business consultant Mike Weinberg points out, when pursuing new business, the key initial questions to ask are: ‘Where will this business originate?’ and ‘Who should I contact?’ To develop an effective sales strategy, determining our direction and targets is essential. That's why selecting targets comes first. Too often, salespeople find themselves merely responding to leads generated from advertisements instead of proactively creating fresh opportunities. Similarly, some sales managers mistakenly believe their teams are contacting prime accounts, when in reality, they lack direction. To enhance sales performance, it's important to clearly define target accounts worth pursuing. This strategic decision determines where you invest your limited time - your most precious resource. It also offers an opportunity to break free from the daily routine and chart a new course. To select worthwhile sales targets, consider the following questions: Who are our best current customers and why? What motivates new customers to buy from us or our competitors? Why have past customers left us? Who nearly became customers but didn’t? Why? Without clarity on these points, creating an effective prospect list is impossible. The answers to these questions help establish whether your sales pitch resonates with those most likely to become satisfied, long-term customers - your “dream clients.” If you can serve their needs exceptionally well, your sales are likely to increase. Additionally, it's beneficial to segment existing customers by value, including highest-revenue accounts, those with the greatest future growth potential, those at the highest risk of loss, and all others. This segmentation encourages strategic thinking beyond the usual business operations. As Weinberg notes, the goal is to contact prospects that resemble our best clients. We offer clear value, enjoy instant credibility, and have delighted customers as proof points. Pursuing such look-alikes is akin to a softball down the middle. After analyzing your customer base, compile a targeted prospect list. Resources for this task include local business journals, Hoover’s company database, LinkedIn, trade shows and conferences, and industry associations. It's also worth including some bold, aspirational picks like industry giants. While landing a major account may seem unlikely, doing so can significantly raise your company's profile. However, it's important to plan to achieve your goals without relying on these major wins. Effective prospect lists share four traits: they are finite, focusing on chosen market segments rather than attempting to appeal to "everyone"; they are focused, with an emphasis on becoming an expert in your niche; they are written, as top producers maintain written lists; and they are realistic, prioritizing prospects that are reasonably accessible. As you build your list, be mindful to avoid common prospecting pitfalls such as lacking direction, waiting on leads instead of actively filling the pipeline, failing to grab attention and communicate value, chasing bad fits, reacting instead of leading, making excuses, experiencing fear and discomfort, being disorganized, dodging outreach, and not improving. It's important to be honest about any shortcomings and work diligently to address them. As Weinberg states, "Sales is simple. Those who insist otherwise are confused themselves or trying to confuse others." In summary, it's crucial to resist the temptation to spread yourself too thin. Weinberg warns, "There’s no prize for selling to the widest variety of customers." Instead, find the path of least resistance and give it your undivided attention and focus.