When companies are creating profiles of possible target customers, there is a dimension they often overlook: the urgency of the need for the offering. This article provides a process for segmenting prospective customers in this fashion and creating a sales strategy.
Many business leaders believe that they fully understand their best target customers. They’ve developed clear profiles (a.k.a. personas) that are richly detailed with well-researched parameters, such as standard characteristics (e.g., age, education level, years at the company, role) or firmographic (e.g., annual revenues, number of employees, industry, geography, years in business). While such characteristics are important, they ignore another crucial characteristic: urgency of need.
A company that offers a software-as-a-service billing solution for small and mid-sized private dental practices may focus on classic demographics, such as the size of the practice (number of employees or number of dentists), the age of the practice (since older practices may more likely have outdated systems), or the amount of insurance billing the practice does each year.
These variables are useful in helping to produce a list of prospects, but they don’t determine which of these dental practices the sales team should call on first. If, however, the company added data that reflects which of these practices’ needs is most urgent — say, those that have advertised for billing and claims administration help more than twice in the past year (suggesting that they are struggling to keep up with billing) — salespeople would be able to prioritize their attention on these prospects.
The Four Segments
This needs-based approach entails segmenting potential customers into four segments:
- Urgent. The customer recognizes that it has an immediate need. (We just had another billing person quit!)
- Non-urgent. The customer recognizes the need, but it isn’t a high priority at this time. (We realize that our billing needs are changing and our current system will need to be revamped. We plan to start looking into this in the next year.)
- Currently met. The customer believes it already has an adequate solution to address the need at this time but recognizes it may not be a long-term solution. (We have an older billing system in place that still does the trick for now.)
- None. The customer simply has no need nor expects such need anytime soon. (Our small practice has a limited number of patients who pay out of pocket. Since all payments are made at the time of service, we simply don’t need a complex new billing system.)
This focus on the urgency of target customers’ needs may sound like common sense, but we have found in our work with B2B companies — from mid-sized firms to Fortune 50 giants in an array of industries such as financial services, enterprise information technology, utilities, industrial solutions, and health care technology — that they often fail to consider this dimension. Here is a process a firm can employ to apply this approach.
Identify new customers.
To identify prospects outside of your existing customer base, you can use available information. One is a source we mentioned: help-wanted ads that reflect a particular need.
But there are plenty of others. For instance, if a company sells inventory management solutions, a source of valuable data might be manufacturing industry merger-and-acquisition data, which could reveal companies with an urgent need to change or merge systems such as those for managing inventories. If a company sells quality-management solutions, a source of valuable data could be companies that are getting hammered for poor quality on social media.
Gather the necessary information.
Identifying your customers’ true urgency of needs requires looking beyond your typical demographic and firmographic profiling. This starts with an outreach initiative to talk to customers and prospects. The purpose is to ask questions to identify new target customer parameters that may be impacting the customer’s urgency of needs:
- Frustrations. How urgent is the need to resolve these frustrations? Which frustration would best accelerate success if resolved?
- Goals. Are your goals clear, consistent, reasonable, and measurable? Have your goals shifted recently?
- Roadblocks. What keeps you from reaching your goals? (i.e., What keeps you up at night?) What is the magnitude of the impact of these roadblocks?
- Environmental and situational factors. Are you experiencing any industry consolidation, organizational or executive management changes or instability, competitive changes, regulatory changes, and so on? What is the magnitude of the impact of these factors?
- Technology factors. Are there new or changing technologies that will impact your ability to achieve your goals? Are you at risk due to technology end-of-life issues or incompatibility?
Assess your firm’s ability to serve lower-level segments.
Once a company has performed its needs-based segmentation effort, it should seek to answer the following questions about each of the four levels. The findings will dictate the sales and marketing strategy, level of investment and resource allocations.
Level 1. Urgent need
How quickly can we meet their need? How can we best serve them? Is the market opportunity large enough to focus only on these prospective customers? Given the customer’s urgency, how do we price our products to optimize margins without damaging relationships by appearing exploitive?
Level 2. Non-urgent need
Can we convince them that their need is more urgent than they currently believe? How do we effectively stay in touch with them so we remain top of mind when they perceive that their need has become urgent?
Level 3. Need currently met
Should we walk away from these prospects? If so, when and how do we touch base with them to see if their needs have changed? Or is there an opportunity to continue to work to convince them that their need is either more significant than they realize or could be much better addressed? If so, what’s the best approach to get them to reconsider their current situation and recognize their true need and its urgency?
Level 4. No need
Should we completely remove these contacts as any potential prospect? Is there some other need we may be able to address for them — perhaps with another product? Should we be in contact on a planned basis to see if their situation has changed? How do we best do that?
The ideal customers are those who clearly understand and recognize they have an urgent need for your offering. However, if that opportunity is not enough to meet the company’s sales volume target, it may be necessary to extend efforts beyond Level 1. Gaining the attention of these additional target customers, challenging their perceptions of their needs, and educating them on how your offering could benefit them will require resources. Consequently, a critical assessment is required to determine whether the opportunity outweighs the investment necessary to address customers in these other levels.
Test your new targets.
Before committing to a complete revamp of how your salespeople are prioritizing opportunities, select one or two experienced salespeople to help you test your new target customer parameters. Identify a few prospects that align to your revamped target profiles, and see how the selected salespeople are able to penetrate them.
Revamp your sales messaging and training.
Include prospective customers’ level of need in your sales messaging — the language that the sales team uses in its interactions with customers. Revamp your sales tools (materials such as brochures, technical papers, and customer testimonials used in the selling process) to include the urgency of need. And teach salespeople how to read and react to the prospective customer’s level of need and adapt their language appropriately.
By adding urgency of need to target customers’ profiles, companies can do more than differentiate their offerings more effectively. They can also identify new growth opportunities and successfully pivot away from slowing or tightening markets. They can accelerate the sales of new products. Last but not least, they can turn underachieving sales teams into strong performers.
2023’s Festive Formula: Small Business Success in the Extended Holiday Season
Navigate the unique landscape of the 2023 holiday shopping season with our expert guide. Discover how small businesses can capitalize on extended consumer spending, leveraging the latest trends in personalization, online marketing, and fast fulfillment. From creating an enchanting in-store experience to mastering the digital realm, learn how to harness consumer behavior shifts for a prosperous holiday period. Get ready to transform challenges into opportunities and make this festive season your most successful yet!
The holiday season is a pivotal time for small businesses globally. With 2023’s extended holiday shopping period and consumer trends towards affordability and unique experiences, small businesses have unique opportunities to thrive.
Understanding the Holiday Shopper
Modern consumers are trading down, seeking value while also desiring experiences and personal connections. They prefer businesses offering unique, personalized services, and community engagement. This shift opens up numerous opportunities for small enterprises.
Creating a Festive In-Store Experience
Physical stores can become holiday attractions. Creative decorations, themed events, and promotions, coupled with an omnichannel approach combining in-store and online experiences, can attract and retain customers.
Leveraging Online Platforms
A strong online presence is critical. Enhance your digital platforms with festive themes, promotions, and gift guides. Utilize AI and generative AI for personalized marketing and improve online interactions through advanced chatbots.
Harnessing the Power of Social Media
Social media offers a platform for inspiration and engagement. Utilize platforms like Pinterest, Instagram, and YouTube to inspire and engage your audience. Collaborative promotions with other businesses can create unique experiences.
Personalization and Customer Service
Personalization is crucial. Use customer data to offer customized experiences and promotions. Exceptional customer service, both in-store and online, is vital to meet high consumer expectations.
Fast Fulfillment and Inventory Management
Consumers expect fast fulfillment options like same-day delivery and curbside pickup, especially among younger demographics. Efficient inventory management and transparent communication about product availability are essential.
Extend holiday strategies beyond December. Post-holiday sales, exchanges, and New Year promotions can drive ongoing traffic and sales. Use this period for collecting feedback and data analysis for future strategies.
The extended 2023 holiday season offers small businesses the chance to adapt and excel. By embracing consumer trends towards value, experiences, and fast fulfillment, and leveraging technology for personalization and efficiency, small businesses can enjoy a successful holiday season.
Unlock the Power of Email: 2023’s Ultimate Guide to Personalized Marketing Mastery
In the rapidly evolving digital landscape, email remains a cornerstone of business communication. Contrary to the whispers of naysayers, email is not an antiquated relic but a dynamic tool, continually adapting to the latest trends and technologies. In this article, we explore how small businesses can craft compelling email campaigns that resonate with today’s audience.
1. The Art of Personalization
Gone are the days of generic, one-size-fits-all email blasts. In 2023, personalization is not just a buzzword; it’s a necessity. Utilizing data analytics to segment your audience and tailor your messages can significantly increase engagement rates. Personalization goes beyond inserting a first name; it’s about crafting content that reflects the individual interests, buying behaviors, and preferences of your subscribers.
2. Mobile-First Email Design
With the majority of emails now opened on mobile devices, a mobile-first design approach is crucial. Emails should be visually appealing and easily readable on smaller screens, with responsive design and clear call-to-action (CTA) buttons. Additionally, loading times should be minimal, and images optimized for quick and efficient loading.
3. Interactive and Visual Content
Incorporating interactive elements like surveys, polls, or clickable sliders can boost engagement and provide valuable feedback. Visual content, such as infographics and videos, can increase open rates and make your emails more memorable. With the rise of platforms like TikTok and Instagram, incorporating short-form video content into your emails can be particularly effective.
4. Authenticity and Brand Storytelling
Consumers are increasingly drawn to brands that showcase authenticity and a compelling narrative. Use your email campaigns to tell your brand’s story, share your values, and build a deeper connection with your audience. This approach not only fosters loyalty but also differentiates your brand in a crowded market.
5. AI-Driven Email Optimization
Artificial Intelligence (AI) is reshaping email marketing. From predictive analytics that forecast the best time to send emails to AI-powered copywriting tools that help create compelling subject lines, integrating AI can significantly enhance the effectiveness of your campaigns.
6. Privacy and Data Protection
With growing concerns about data privacy and the introduction of regulations like GDPR, ensuring the privacy and security of your subscribers’ data is more critical than ever. Be transparent about how you collect and use data, provide easy opt-out options, and maintain compliance with data protection laws.
7. Measuring Success and Adapting Strategies
Finally, the success of an email campaign is in its metrics. Open rates, click-through rates, conversion rates, and unsubscribe rates provide insights into what works and what doesn’t. Regularly reviewing these metrics and adapting your strategy accordingly is key to continual improvement.
Email marketing remains a vital tool for small businesses, offering a direct line of communication to your audience. By embracing personalization, optimizing for mobile, leveraging interactive and visual content, staying authentic, utilizing AI, respecting privacy, and adapting to feedback, your email campaigns can achieve greater relevance and impact in the ever-changing digital era.
This article aims to provide small businesses with up-to-date insights and actionable tips on creating effective and engaging email campaigns that align with current trends and consumer expectations.
Revolutionizing Marketing: The Power of AI in the Digital Age
Embracing AI-Powered Marketing: Transforming Brands in the Digital Marketplace
In the crowded digital marketplace, standing out is challenging. Enter AI-powered marketing, a revolutionary upgrade transforming brands into digital powerhouses.
Hyper-Personalized Campaigns: Beyond Basic Personalization
Gone are the days of generic marketing. Today’s gold standard is AI-driven hyper-personalization. This approach uses customer data analysis to create deeply resonant, individualized marketing campaigns. With AI’s ability to segment audiences based on intricate criteria, including purchasing history and browsing behavior, your messages can hit the mark every time.
Enhanced Customer Journey Mapping
AI’s capabilities extend to mapping the entire customer journey. By predicting needs and preferences at each stage, AI aids in crafting narratives that guide customers from discovery to purchase, integrating your brand into their personal stories.
SEO Wizardry: Mastering Search Engine Dynamics
With ever-changing algorithms, SEO is a complex puzzle. AI serves as a sophisticated navigator, deciphering these changes through machine learning. It aids in keyword optimization, understanding search intent, and aligning content with search trends.
AI tools offer predictive SEO, anticipating search engine and user behavior changes. This proactive stance ensures your brand’s prominent visibility in search results, capturing the right audience at the right time.
Social Media Mastery: Crafting a Digital Narrative
AI transforms social media strategies from uncertain to precise. By analyzing vast social data, AI provides insights into resonating content.
AI analyzes performance data to recommend effective content types. This data-driven approach refines your social media content strategy.
AI examines user interaction nuances, understanding engagement patterns. It helps tailor interactions for maximum impact, including adjusting posting schedules and messaging for increased relevance.
Conclusion: Navigating the AI-Driven Marketing Landscape
AI-powered marketing is essential for thriving in the digital age, offering precision and personalization beyond traditional methods. For small businesses, it’s a chance to leverage AI for impactful, data-driven strategies.
As we embrace the AI revolution, the future of marketing is not just bright but intelligently radiant. With AI as your digital ally, your brand is equipped for a successful journey, making every marketing effort and customer interaction count.
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