Knowing the characteristics of your customers can help to clarify and identify potential leads. Yes, it’s right that 20% of your existing customers are bringing in 80% of your revenues. But choose to ignore the other 80% at your own risk. Customers change. Their incomes, attitudes, preferences, life stages evolve at a much faster pace than our ability to garner insights. We could be sitting on potential blockbuster, currently dormant customers. It would be naïve and myopic to not acknowledge the unique, niche segments within your customer clusters. All it takes is a bit of a nudge and push to activate them. They may be too miniscule in terms of their segment size, but may still have the potential to emerge as your most entrenched customers. But yes, it definitely takes some deep-dive understanding about these customers to make them an offer they can’t refuse.
It’s time that companies wake up to the power of these niches and start looking at these smaller segments for their unique characteristics. It’s time to stop looking at customers as one large mass that’ll react similarly to mass marketing ‘pulls’. Somewhere, we need to go beyond the existing lazy segmentation of key accounts, high net worth (HNWs) and the rest. Marketing to this ‘Rest’ could be a real game-changer! If marketers put concentrated marketing efforts toward knowing about these high-potential niche customer segments, they're going to do a whole lot better than if they go after everybody in a similar manner.
As famously emphasized by John Carlzon - A company is defined in the minds of its customers as the composite total of every moment of truth -- those short periods when the customer interacts with the company or one of its employees. The best approach to delivering consistently high-quality moments of truth lie in building a customer-driven company. The essential characteristics of such a company being –
- The employees who interact with customers have the authority to make decisions on behalf of the company.
- Middle managers who work to manage resources so the frontline employees can be more effective.
- Corporate leaders who develop a vision of where the company should be heading and provide inspiration.
- A flat organizational structure where real-world experience from frontline employees is learned from and built upon.
- A willingness to look at everything solely and exclusively from the same perspective a customer uses.
- A commitment to narrowing the focus of the company to the delivery of exceptional service.
To know more, continue reading the fourth part of this seven-part series here