3 Segmentation Factors Define Ideal Clients | HEI Traction

 

Knowing who your ideal clients are is key to focusing on who you want to work with and where you should spend your marketing dollars. Too many times, we try to be everything to everyone! Instead, use these three segmentation factors to help you define and connect with your target market:

  1. Demographic
  2. Geographic
  3. Psychographic

For example, here’s how you might define the ideal customer for a dry cleaning business through the lens of each of these:

Demographic

  • Who are your customers?
  • What is their income or earning range?
  • Are they married?
  • Are they working?
  • Are they educated?

What we want to do here is paint the most precise picture of our ideal customer. The more specific, the better we’ll be at creating targeted marketing and sales tactics. For example, our ideal clients are:

  • Working professionals, over 40, with an annual income of $150,000.

Geographic

  • Where in the country are they?
  • What city, state or region?
  • Are they in rural or urban areas?

Make sure it’s clear, so you know where to target your marketing. For example:

  • Our ideal clients live in Naples, Fla.

Psychographic

  • How do our ideal clients need to think to work best with us?
  • What do they value?
  • What do they want?
  • What don’t they like?
  • What are they willing to do?

For your psychographic behavior analysis, you may settle on a statement like:

  • Our ideal clients focus on their work and not their clothes. They don’t want to take the time to drop off their clothes. They value quality and a trusting relationship so much they’re willing to pay for it. They also love looking their best to do what they do best.

Finally, when we combine elements from all three, we would have a statement like:

  • Our ideal customers are working professionals over 40 in Naples, Fla. with an annual income of $150,000. They want to focus on their work and don’t want to drop off their clothes. They value time, convenience, quality, looking their best, and a long-term, trusting relationship. They’re also willing to pay for these conveniences; they don’t shop, want to shop, or cut coupons. They want it done their way every time.

Remember, once you identify your ideal clients, you’ll know where to spend your marketing dollars. However, most businesses want to cast a much wider net than necessary when targeting customers.

There is nothing wrong with helping the masses, but every business has a target market. Yes, you’ll serve clients outside of your target market, but your goal should be to work only with your ideal clients.

After helping other clients with similar challenges, I’ve found that most non-target clients consume the largest percentage of the company’s time. But these clients are difficult to work with and sell to.

When companies finally get this, they do an exercise called the dirty dozen. They go through their customer base, and they do one of three things with their non-target market clients:

  • Make their customers more profitable
  • Get their customers to play nice
  • Fire their worst customers

One final note: don’t let your worst clients fire your best people. These customers can drain you and burn out your employees.

There are so many advantages to working with what is ideal for you. It will help you define your marketing budget and where to spend those dollars. Just be who you want to be in the world, and don’t try to be everything to everyone.

If you want to run a better business, target, and work with your ideal clients.

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