Customer Analysis- By now, you should feel that your business plan is coming together. All the hard work is beginning to pay off and you are establishing a better connection with your business. The numerous pages will finally start making sense and your business plan will be shaping out as a professional and complete document.
After completing your “Industry Analysis” (if you haven’t already written one, go here to learn more about writing this section: “Know Your Industry – The Market Research”) and “Competitive Analysis” (go here to learn more: “Adjusting Your Crosshair – Competitive Analysis”), it is time to start thinking about your customers. In order to create any branding, marketing or any sort of strategy, you need to know exactly who you will be serving. Is your customer a professional businessman or a cocky teenager? Or are you targeting a selective group of individuals? In order to figure out how you can best serve your customer, you really need to get to know your customers. But this information is not only important for you. Investors and anyone reading the business need to be able to identify and correlate with your customers. This will give them more insight on the practicality of your business idea as they will be able to visualize real world scenarios and interactions between your customers and you. If you are making running shoes for people above 60, your investors will not only be concerned about your business viability, but also your mental health. Basically, your customer analysis will make your business plan and your business sound more logical.
“Don’t find customers for your products, find products for your customers” – Seth Godin
This is how your business plan will sound like if you don’t incorporate a customer analysis: I will be making shoes. This is all well and good, but it doesn’t really explain who you will be making shoes for. Will you be manufacturing shoes for kids or for adults or will you be making shoes just for females of a particular age group?
Understanding your customers also adds intrinsic value. You will be able to connect with your customers and understand their needs. This really adds value to your business delivery, as customer loyalty is swayed more by how you demonstrate compassion and care towards your customer. A customer will choose you over your competitor because you actually believe in helping the customer rather than just taking their money.
“Your customer doesn’t care how much you know until they know how much you care.” – Damon Richards
Knowing your target market will also help you establish how you want to market your product as well as determine the best way to get them in the market. For example, if you are making athletic footwear, your marketing campaigns will be surrounded by a general vibe of athleticism. Who knows, maybe you may even feature Leo Messi in one of your campaigns.
It is crucial for any business to understand who they exist for. And here you thought the sole purpose of your business’ existence was you? Don’t get me wrong, it is your idea, but your idea is incomplete if you aren’t able to deliver it to the people you had the idea for.
“Know what your customers want most and what your company does best. Focus on where those two meet.” – Kevin Stirtz
So, it’s time to understand and get to know your customer. Now, we don’t mean it’s time to get intimate with them or know their every move. You don’t want to be known as the creepy stalker nor do you want to sleep with your customers. You just need to know them enough to understand their needs and desires and how you can provide the value proposition that you have been wanting to.
“You have got to know your customer better than they know themselves” – Stephen Little
So, what makes a good customer analysis? Knowing your typical customer’s age, gender, geographic location etc. will help you understand how you can serve your customer better as well as how you can strategize your marketing campaign. Furthermore, this will help you with your product mix. You should also know about their spending behaviors and patterns. In addition, you should also take a look at how these customers interact with your competitors. Those are the basics that are relevant to your business plan.
Well, there you have it. Stay close to your customers but not too close! You don’t want to freak them out! Now, go give them what they want!
