Who Is Your Ideal Customer?
Module 1: Prospecting Like an Evangelist Session Number: 4
Session Title: Who Is Your Ideal Customer?
Many of you may be convinced that you know who your ideal customer is. Everyone needs your software, after all, so you go after hospitals, schools, banks and other companies that use computers. Realistically, though, it won’t be a perfect fit for everyone, even if they could all benefit from it. It’s not the best strategy to go after everyone out there.
Some prospects won’t convert as easily as others or won’t be as profitable to your business. If you focus on finding the very best customers, you could shorten your sales cycle and free yourself to pursue other customers, improving your own pipeline.
Step 1: Create an ideal customer profile - "Best Product or Service"
Create a basic ideal customer profile document. One page in this document will outline each product or service that you sell, the problem it solves for your customers, and revenue information for those items.
Include the following headings at a minimum:
- Product/Services your company offers
- Problems your company solves
- Reasons that prospects have these problems
- Number of units sold over the past two years
- Average investment for customers who purchased that product
- Total revenue generated by each product or service
This information about The Sales Evangelist doesn’t reflect our exact numbers, but it reflects all of our offerings, how those offerings help our prospects, how many of each we’ve sold, and how much money it has generated for us.
Looking at the chart above, our team is able to quickly determine which of these offerings contribute most to our team’s revenues. The numbers don’t lie.
In our case, consulting gigs and online programs generate the greatest revenue for TSE. Speaking gigs generate a fair amount of money without taking a lot of time, so we might seek more of those as well.
Step 2: Create an ideal customer profile - "Best Customer"
Now we’ll decide which opportunities to invest our time in as we’re prospecting.
The second page will reflect your ideal customer profiles. We’re seeking to understand the profile of the companies who are the best fit for what we offer. This document will help you track your ideal customers in your prospecting efforts.
Include the following headings at a minimum:
- Number of employees
- Annual revenue
- How do they make money?
- Product they purchased
- Problem they had and why they had it?
- How did they hear about you?
- Where do they go for information?
- Events they attend
Because I know that our consulting gigs and our training opportunities are the most lucrative, those are the ones I’ll seek to go after. Use your CRM or consult with your sales manager to determine which customers buy the most, which ones spend the most, and which ones are the customers you absolutely love doing business with.
Now I see marketing and technology appearing often in my spreadsheet, I’ll know that those are the industries I’ll spend more time on. Same is true of the location and the events these organizations attend. Once you’ve determined which platforms your prospects frequent, you can focus your efforts there. Many B2B companies will use LinkedIn most often.
Step 3: Determine which product to sell to who
Use the data you’ve gathered to determine which product to sell to which organization. Figure out which industries will benefit most from what we’re trying to sell, and which locations to focus on.
Tasks to Implement:
Download the spreadsheet we’ve created and look through it. Use this exercise and the data in it to understand how you’ll create a predictable process you can follow each month.
If you have any questions, be sure to let us know so we can help you out.
Though there are likely many organizations that could benefit from your product or service, not every company will be a perfect fit. Rather than chasing after every possible customer, use your existing data to determine which products generate the most revenue for you, and which customers historically benefit from those products. Then focus your efforts on those products and industries to maximize your productivity.
Avoid falling into the gap of trying to chase every single possible customer. You’ll burn out because your messaging won’t be cohesive or targeted. On the other hand, if you allow it to, his focused data will give you a distinct sense of direction as well as the confidence to find the very best prospects for your company.