It is common practice to determine your target customer when developing a business. However, this tunnel vision buyer group mentality leaves money on the table for businesses. To truly optimize profit and revenue a company’s leadership must be well aware of the many buyer groups (purchasers, actual users, and influencers) that can offer opportunity to enter into a new market space with high profit potential.
For example, say you are leather shoe manufacturer who usually focuses on retailers as its main buyer group. Through analysis of your current, similar and alternative products coupled with identifying the pain points of using your product you can realize a low-cost profitable opportunity to reel in your end users; essentially entering into a new market space.
A more effective strategic customer analysis would require you to understand the following:
- Why buyers choose to buy your product; aka purchase criteria
- What are the factors that cause customers to become angry with your product or company
- What are the factors that keep potential customers at bay (you must understand their priorities and create solutions to meet their needs)
- The preferences of your customers
- The decision making process of your customers
- Customer behavior
- Why they choose to buy at a certain time (holidays, birthday, graduation, et cetera)
- Time, travel, hassle and money the customer is willing to pay for buying and using your product or service
- What functional needs need to be met
- purchasing power
Businesses must also understand what factors motivate buyers to purchase based on price or quality. However, it is imperative that you just focus on the buyer group that has the highest profit potential at a lower cost and your company’s capabilities are able to meet their priorities.