Industry research shows that firms focused on target markets are growing faster and more profitably than their peers. How much? A recent industry study found that firms with a defined targeting strategy had a median operating profit margin that was 18% greater than comparable firms and their median annual client growth was 35% greater than their competitors.
With a client targeting strategy, you can also fine-tune your business development plan and refocus your marketing spend on efforts that directly impact your target market. When you target your ideal client, you have the opportunity to replace costly, all-encompassing marketing programs with specific tactics aimed at achieving specific business objectives.
However, simply implementing customer targeting is not enough to ensure success. Revisiting your targeting strategy on a regular basis will help you prioritize your investments in business development activities.
How to target your ideal client
The first step in targeting your ideal client is understanding who your target client is.
1) Analyze your current clients
Who is already interested in your product? What do you know about them? What market segments does your current client base fall under?
2) Define who is, and is not, a part of your target market
Apart from your current clients, who else do you think would be interested in your services? Be specific here. Determining specific characteristics and attributes for your target segment will allow you to be much more strategic in your marketing approach. Here are just a few criteria to consider when you rae establishing your target market:
- Geographic location
- Financial status
Similarly, consider if there is a current segment that you want to avoid. For example, while clients in remote locations may be potential customers, would you be able to offer them a top-of-the-line service offering and client experience given the geographical separation? If the answer is ‘no,’ consider whether that’s the best use of your time and resources—or theirs!
And stay curious. Is there a specific market segment that you are interested in? Is there a segment where you think you would have success? Do your research and ask yourself it’s worth pursuing and seriously investing in that audience.
3) Be where your segment is
Once you've decided on your target segment, consider the behaviours of people within your segment. How do they spend their time? What are their beliefs and interests? What websites do they frequent? What publications do they read? Understanding their interests can help you determine where to market your business. For example, will you reach your audience if you advertise in Canadian Golf Digest Magazine? What about on Facebook or Instagram?
4) Strengthen your digital presence
And, finally, once you've decided on the best way to reach your target client, make sure that your corporate content, LinkedIn profile, website, and marketing materials speak to the market that you are targeting. Having a consistent message across all of your sales activities will make your brand stronger!
For access to future thought leadership and for alerts when new blog articles from NBIN become available, follow us on our LinkedIn page.