Understanding your customers to achieve business success

Sandeep Das, Independent Brand Strategy Consultant

Defining who ‘you are selling to’ is critical

“Get closer than ever to your customers. So close, in fact, that you tell them what they need well before they realize it themselves.” – Steve Jobs

“Increasingly, the mass marketing is turning into a mass of niches” – Chris Anderson, author of The Long Tail

“Understand why and how your customers interact with brands they already know and then start trying to align your messaging with those partners” – Kurt Uhlir, CEO Sideqik

Identifying ‘who your customer is’ starts at why you decided to start your business

The snap of inspiration

The ‘problem’ that you wanted to solve

Why you thought the ‘problem’ was relevant?

What did you intend to offer differently?

Why did you think it would have appeal?

How did you intend to add ‘value’?

Why did you think your solution was different?

Some aspects to understand while defining your customerBe very narrowTargeting is most effective in ‘niches’. If you have a product with a broad target group, define the edges very sharply

Choose multiple dimensionsDefine your customer using a combination of demographic, psychographic and attitudinal metrics

Stay away from oversimplif-icationIgnore all the hype and hoopla around Millennials, Gen X, Gen Z etc.

Understand broader trendsNo one lives in a vacuum and neither does your customer

ObserveIn this age of digital driven fleeting engagement, deep observations still have immense value

Assess market viabilityYour product needs a market and the market needs to have future viability

Assess longevity of appealIs your product a ‘one use’ wonder or does it have repeat value and appeal?

What stage is your product?Your target customer expects a finished product that delivers on all promised dimensions

Niche-marketing success story: Lehman’s• Lehman’s specialises in

selling non-electric, old-fashioned tools and appliances

• Initially achieved success by targeting the Amish, which has helped them grow the business

• Current target groups include hunters, fishermen, Hollywood set designers and environmentalists

“The secret to a successful niche business is realising that it isn’t about you. It’s about the customer.” – Glenda Ervin, VP Marketing, Lehman’s

Creating a typology / description of your target customerCreate a visual typology of your target customer. But use the typology as a guiding tool, and not as a set of rules and regulations.

Demographic• Age• Gender• Education• Socio-economic

status• Income• Presence / absence

of children• Region / City• Urban / Rural• Household

responsibilities• Household status

Psychographic• Attitudes towards

life in general• Media consumption

habits• Shopping habits• Social habits• Community

involvement• Charitable causes• Environmental

causes• Social causes

Attitudinal• Specific attitudes

towards the category of your product

• Shopping habits towards specific category

• Views towards brands and products

• How brands are selected? What drives brand selection?

Researching your target customerBefore you conduct any form of research to understand your customer, you need to finalise the questions you are looking for answers for:

How big is your target customer base?

What trends impact them?

What are their biggest challenges?

What solutions are they looking for?

What options do they have currently in the market?

Are there new opportunity areas?

Does your product tap into any of these opportunity areas?

How uniquely differentiated are you to the competition?

How to research your target customer?There are multiple ways and none of them break the bank!!Secondary research

Consulting with friends / family / colleagues

Deep observations

Attending network groups / startup communities

Trade / industry publications

Attending themed conferences

Primary research*

Keeping abreast of and analysing trends

Expert interviews / conversations

Reading theoretical / industry papers

Attending breakfast and lunch briefings

Following influencers on social media

Using Google Consumer Surveys

Identify the size of consumer target group

Assess the size of the problem that you are trying to solve

Assess how competitors are faring in solving the problem?

Your target consumer is defined, then what?Effective targeting of consumers requires an understanding of 2 key factors:

• Level of fragmentation in the market

• What are your competitors up to?

Unless you are bringing a disruptive invention or innovation into the market, you need to accept and embrace competition in your product development and marketing process

Absence of any competition can actually indicate two issues:

• Is the problem that you are trying solve big enough?

• If yes, what is the nature of the barriers to entry and how big are they?

Shaping your product in light of competition (and when you know your target customer)

Positioning Are there differentiating elements you can own and communicate?

Value What is your value equation? This is not about the money but the impact on the customers’ life

Problem What emotional and functional benefits is the customer going to derive?

Distinctiveness How is your product different from competition on functional and emotional delivery?

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Creating a differentiated product for an identified target groupInnovation does not need to be a multi-million dollar activity that only big corporations can afford

Setup Twitter / Facebook polls

Google Consumer Surveys – Mini U&As

Industry / expert interviews or conversations

Involved in a startup community

Feedback on Bulletin Boards / review sites

Product reviews on retailer, aggregator sites

Evolving trends in a specific market or category

If you a sizeable budget, commission a research agency!!

Positioning a differentiated product to an identified target group

No gaps in the market but existing products not delivering on expectations

Significant gaps in the market exist and no current products deliver on them

Create a new market altogether – Does your product have it?

Thank you & Questions

Sandeep Das, Independent Brand Strategy ConsultantE: contact@sandeepdas.coM: +44 750 3935 142