THE KEY TO UNDERSTANDING YOUR CUSTOMERS: SNOWFLAKES
Driving the behavior of your customers and prospects is key to business success. And in order to drive the behavior of all those people you need to understand some key things about them.
But you may have thousands or even millions of customers and prospects, and just like snowflakes every one of them is completely unique.
How are you supposed to understand all of those people?
Well here’s some good news.
Yes, like snowflakes, they are all unique.
BUT, also like snowflakes many are extremely similar.
So by grouping customers into a manageable number of similar segments, it becomes much easier to identify what their needs are and find ways to serve them effectively.
HIGHEST LEVEL SEGMENTATION: SHOULD THEY EVEN BE A CUSTOMER?
Not every human on the planet even belongs in one of your segments.
So there should be certain characteristics that define whether someone would be a likely customer at all.
For example, you may have products only for women, or you may only sell in North America, or perhaps you provide services primarily to large businesses or to startups.
Define the criteria that include or exclude someone of interest to your company as a potential customer.
CREATE HIGH-LEVEL CUSTOMER SEGMENTS
The next step is to document the most fundamental different types of customers that your business interacts with. We call these “segments.”
Here’s a simple example to demonstrate this. Microsoft customers fall into three primary categories:
My Wall Street Journal bestselling book, WINNING DIGITAL CUSTOMERS: THE ANTIDOTE TO IRRELEVANCE, provides a detailed approach to identifying who your customers are and then gathering and synthesizing research insights to yield a rich understanding of them. The book itself is a blueprint for earning love from today’s customers, which is the single most important factor in the success of your business.
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