It’s easy to talk about being customer-focused. It’s less easy to focus on specific customers. There are so many, and so many different types! Here are three customer dimensions to consider when selecting your growth strategy. It’s not a trivial exercise: wrong focus, no growth.
- Current Status: will your business be better served by focusing on existing customers or seeking new ones? There is no universally right answer. Many of the leading consulting firms excel at bringing new products to the same set of customers, while a closet organizer must find new clients or die; his current customers only have so many closets.
- Profitability: will your business be better served by focusing on the most profitable customers or improving the profitability of the less profitable ones? Again, no universal answer. Where is the best ROI?
- Satisfaction: will your business be better served by focusing on your most satisfied customers or the least satisfied ones? Can you grow more by deepening an already strong relationship or by improving a weak one?
Analyzing these three dimensions can help focus your strategic choices and marketing plans. You may find that your biggest opportunity, for example, is chasing non-customers who are dissatisfied with your competitor’s product but are not aware of the alternative you offer. Or, you might build deeper ties with your most profitable, satisfied current customers, building a high barrier against potential competitors.
It’s your choice, but you need to make it. That’s what building a winning strategy is about.