Understanding Your Customer

This is the next post in the series How to Build a Business Online in 7 Steps.

Step 1.2 – Understanding your customer

Now we are going to get to know our best customers a little better. You only need to focus on the customers that bring you 80% of your total revenue.

What you need to do is the following:

1. Take a look at their website (most companies have a website these days) and get to learn more about their business and how they help their customers.
2. Make a note of the main products or services they sell.
3. From what you learn work out what attracted them to your product or service. What problem does it solve for them specifically?
4. Write down how you got them as a customer. Did you meet them at a networking event? Did they respond to a marketing campaign? You get the idea.

EXERCISE

Once you have collected this information decide the following two things:

• Who are your best target customers? – hint: take a look at the commonalities your best customers share. Are they in the same market, supply similar products, bought for similar reasons etc.
• What are your competitive advantages? – you may get a clue from the reasons why your best customers bought from you. Remember it is not always price

 

Coming Next…

Next we will look at how you can find where your potential customers are “hanging 0ut” online so you can get your business in front of them.

If you have any comments to make don’t forget to leave them below. Thanks for reading.

Related posts:

1. Understanding Your Online Competition