Mistake – No segmentation!If you haven’t made any effort to define your desirable customer segments, how are you creating your advertising and marketing programs? What is the message in your marketing? Large corporations with large brands and large marketing budgets can do this, but a startup business usually has limited resources and negative cash flow. If your startup already has great, positive cash flow you do not need to read any further! All others need to consider the following definition of a customer segment:
“A defined group of potential customers who share the same problem or passion and speak the same language.”
Mistake – Defining by demographics aloneIs your most desirable customer segment defined as a male in their 50’s? Just because a person is male and in his 50’s doesn’t mean they have the same problem and speak the same language. One 53-year-old male might have a problem selecting fashionable shirts for his next vacation where another 53-year-old male wears the same shirt every day but really needs to find parts for his 68 Camaro which he is restoring himself.
The most important and most often missed piece: “share the same problem”
“Want to get your spouse off your back about fixing that smelly basement? We can help!”In summary, the key to startup success is to narrow your customer segment (defined by a common problem or pain point). When you can communicate to them in their own language that you can solve their problem, they will ask you to solve it. Deliver the value by solving it and make some money! P.S. If you happen to be one of those business owners concerned about your bookkeeping practices, let me know because I am working on a solution to that problem! email@example.com
Paul Foster is the Founder & CEO of The Business Therapist. Paul’s life’s purpose is to bring more cash, freedom and happiness to independent business owners. Paul wants to learn about your toughest business challenges and frustrations so he can help you overcome them.