Your Ideal Customer

The first step in defining your ideal customer is to look at your existing customer data.  If you are a new start-up company you may not have this information at the moment in which case your next step may be to begin thinking about and developing your Buyer Personas.

If you do have existing sales and a number of existing customers then it is worth analysing them to profile the types of businesses that bring you most of your revenue with the least amount of effort.

You should look at what industry and sector they represent, what their annual turnover is, how many staff they have, how much money they spend with you and at what frequency, the average cost of each purchase, and how long it has been since they last bought from you, to identify if they are still an active customer.

By completing this table as laid out below, with the information as described above, you will be able to see what types of companies are most beneficial to you.  You will then be able to identify those in your top 20% as described in our ‘Acquiring New Customers’ article.

The idea is to build a profile of your 'ideal type of customer' so that you can target similar companies in existing and other markets.  This is done through content marketing and online advertising campaigns and purchasing relevant matching contact data.

If you lack any information regarding the markets your existing customers operate in, refer back to any marketing reports that you searched for in the defining new market segments section, or search for new ones relevant to the industries and sectors your customers operate in as described in segmenting the market.

ANALYSE YOUR EXISTING CUSTOMER DATA

Company Name

     

Industry

     

Sector

     

Market Size (£)

     

CAGR (Compound Annual Growth Rate)

     

What do they sell

     

What problem do they have

     

Turnover(£)

     

No. of Staff

     

Procurement process

     

Purchases per year

     

Avg. purchase (£)

     

Yearly spend with you

     

% of your revenue

     

Months since last purchase

     

Remember, your ideal customer should be one that brings you the most amount of repeated revenue, for the least amount of effort in a growing market.

You should look at:

  • % revenue from the customer

  • their effort rating

  • procurement process

  • how many purchases per year they make

 Include in the criteria: 

  • the industry and segments they represent

  • market growth rate

  • their annual turnover

  • and how many people they employ


Do you want more sales and new customers?