The aboriginal step of the Customer Analysis is to define exactly which customers the company is serving. This requires specificity. It is not adequate to add the company is targeting baby businesses, for archetype, as there are several million of these types of customers. Rather, the aim must analyze precisely the customers it is serving, such as baby businesses with 10 to 50 employees based in ample metropolitan cities on the West Coast.
Once the aim has clearly identified and defined the companys target customers, it is all-big to statement for the demographics of these customers. Questions to be answered accommodate: 1) how abounding abeyant customers fit the accustomed definition? is this customer base growing or decreasing? 2) what is the average revenues/income of these customers? and 3) where are these customers geographically based?
After explaining customer demographics, the aim must detail the needs of these customers. Conveying customer needs could booty the anatomy of former actions (X% accept purchased a agnate product in the former), approaching projections (when interviewed, X% said that they would purchase product/service Y) and/or implications (as X% statement a product/service which our product/service enhances/replaces, then X% charge our product/service).
The bag aim must again detail the drivers of customer accommodation-manufacture. Specimen questions to answer accommodate: 1) Accomplish customers acquisition price to be added big than the affection of the product or service? and 2) are customers looking for the highest akin of reliability, or will they accept their own abutment and aloof seek a basic akin of service?
There is one last critical step in the Customer Analysis — showing an compassionate of the actual accommodation-manufacture action. Examples of questions to be answered here accommodate: 1) will the customer consult others in their alignment/family before manufacture a accommodation?, 2) will the customer seek multiple bids? and 3) will the product/service crave cogent workable changes (e.g., will the customer accept to invest age to apprentice advanced technologies? will the product/service statement other members within the alignment to lose their jobs? etc.).
It is chief to truly accept customers to advance a acknowledged bag and marketing strategy. As such, sophisticated investors crave comprehensive profiles of a companys target customers. By spending the age to research and analyze your target customers, you will advance both add to your bag strategy and funding accomplishment.
About the author:
As President of , Dave Lavinsky has helped the company alter to one of the premier bag aim adding to firms. Since its inception, Growthink has developed over 200 bag plans. Growthink clients accept collectively raised over $750 million in financing, launched abundant advanced product and service lines and gained competitive advantage and marketplace share.
Originall posted December 19, 2012