As business owners, we usually don’t spend time properly defining who our ideal customer is, because we are anxious to make money to keep the business afloat. However by not properly defining our ideal customer, we fall into the trap of working with or selling to customers who either under pay us or overstress us, so they don’t bring much value to our business. So who is your ideal customer? I decided to create an ideal customer equation and it looks like this:
IC= (SA*RP) +SU+FP+R
From this equation, you ideal customer should be a person or organization who:
- Appreciates your service: this person/organization needs your product or services and appreciates the value you bring. This type of customer is less likely to give you a lot of stress during the service delivery process.
- Repeat patronage: this customer not only appreciates your product/service but comes back for more! This is the type of customer you can build your business around. They would ensure your business remains a going concern.
- Utilizes your product/service: if you sell this customer a product, they are likely to utilize it several times. For example if you sell them a watch or pieces of clothing they are more likely to wear it several times. This is important for a business trying to build a brand, because the more they utilize it, the more your brand is promoted.
- Pays you fairly: this is not the type of customer you sell to and feel sad in the pit of your stomach. This customer pays your fairly for your products and services, and the relationship is a win-win.
- Referral: this customer is your raving fan and tells people about your business. They become a constant source of new business and that is why you must value them and treat them very well.
Now you know who you ideal customer is; the next step is how to find them. I would discuss this in my next article. What do you think about the ideal customer equation? Your comments are appreciated.