In recent months, a number of businesses have contacted us to discuss their customer strategies. In many cases, it boiled down to them rethinking the customers they currently serve and the changes they wanted to bring to their approach.

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Common triggers

There are many reasons why businesses are wise to re-evaluate and rethink their customers. From the work we do supporting such companies and their owners, here are 10 common triggers.

1. Challenging economy

In tougher economic times (particularly prompted by the pandemic), many businesses took on all the work that came their way (just in case any channels dried up). This included work which has since proved unsatisfactory or unprofitable.

2. Relationship differences

Businesses have recognised marked differences in their relationships with customers. In their words ‘some are a joy to work with; others hard work”. They want more of the ‘joyous’ customers.

3. Underappreciation

Some businesses feel they aren’t fully recognised for their strengths and broader offerings. They either feel pigeonholed for one service/product, or their current and potential customers don’t fully grasp what they deliver.

4. Product or service development

The evolution and innovation of service or product lines often trigger a customer rethink. In doing so, the business wants to ensure the enhanced or new elements are built on a clear understanding of a specific audience to engage with.

5. Achieving goals

The business has specific growth or other targets and is questioning if the current customer group will realistically help them achieve these.

6. Lessening loyalty

There’s a perception that the business needs to be more actively engaging or resonating with its customer group, or there are signs that customer retention and loyalty have diminished.

7. Evolution of customers

Here, the business recognises that the demographics of the customer group have changed – for example, through changes in income or progression through life’s or business’ key stages. Changing customer needs and behaviours are common factors behind the rethink.

8. Market expansion

This trigger stems from the business looking to expand its customer group – either within existing territories or sectors or by branching out into new ones.

9. Marketing effectiveness

Another catalyst is a review of the marketing effectiveness of the business. When things aren’t going to plan or results are disappointing, a return to basics typically begins with re-evaluating the target customers.

10. Rationalisation to focus

Some businesses find their market is too broad to support well, and feel stretched. They then want a review of their customer base to be able to focus on a smaller group, or groups where they can deliver a higher quality offering.

Why a rethink makes commercial sense

It is sensible to periodically review your customer group. Business and individuals’ lives are dynamic. Humans change, businesses evolve, and customers’ needs and wants rarely stay the same over time.

Our work supporting businesses that want to rethink their customer groups typically involves an interactive workshop and strategy-forming session. This includes exploring the characteristics of current vs ideal customers, what those customers are looking for and their key preferences, interests and influences.

We also assess the business – particularly the strengths within its offering, the benefits it brings, and the solutions that satisfy specific customer needs.

Doing this builds a more 3-dimensional impression of the customer and the business. It flags commonalities as well as gaps, mismatches, and irrelevant factors. From these businesses can see opportunities for greater connectedness with their customers. Think of the middle ground in the 2 intertwining circles of a Venn diagram. That area brings exciting opportunities for both parties.

From this rethink, we then look at the marketing channels, messaging, campaigns and frequency.

Rethinking your customer groups through profiling, audience personas, and segmentation helps you gain clarity and, in turn, focus. This clearer and deeper understanding enables you to initiate more meaningful and valued interactions between both parties (your business and your customers).

When should you rethink?

Although it’s a common catalyst, ideally a rethink shouldn’t be left until something bad has happened or if the business is bored with the same old / same old. Rethinks should be encouraged more regularly against strategic business questions such as, are we in alignment with our customers’ current lives, opportunities and challenges? Are the customers we support true to our values, ethos and qualities? Are we and our customers still enjoying working together?

Lifting the fog

One thing we truly enjoy when we help our clients rethink their customers is the ‘aha’ moments that often happen during our workshops or discussions. These moments take the form of looks of relief, understanding visibly dawning, joy and genuine excitement as people gain clarity of the customers they genuinely want to work with and support.

Often, this translates into renewed energy and drive, with a clearer path forward for their inherent plans and goals.

Summary

Too often businesses thrash around rather than swim in their ocean of opportunities. Returning to basics by rethinking your customer group to better understand them helps get you back on track. It also:

a)       helps you assess which customers you are best placed to serve,

b)      ensures you are 100% relevant to them and, more importantly,

c)       enables you to both enjoy working with one another.

If your business would appreciate an initial chat about rethinking its customer group, do get in touch.