Targeting: It's Not a Numbers Game

In many experiences I've had, whether I was a key account manager or a marketing officer, my biggest struggle was dealing with sales directors or CEOs who wanted me and my team to contact as many customers as possible. This was particularly challenging when the company was strapped for cash or trying to sustain growth by milking existing cows. It felt like fishing in a red ocean, casting a wide net, and hoping to catch some free-swimming fish overlooked by the competition.

I remember, in my last job, I was evaluated based on the number of calls I made per day, hoping someone would eventually open the door. When I tried to explain the importance of a targeted approach, supported by data and focused campaigns, and a strong value proposition, I was ignored and ultimately dismissed from the company's strategic interests.

Despite my efforts, my ideas were met with resistance. The leadership team was entrenched in the belief that more calls equated to more opportunities. They ignored my data-driven arguments and continued to push for volume over precision. Ultimately, my vision of a strategic, targeted approach was dismissed, and I was sidelined from the company's strategic interests. Here’s what I told them we should have done.

The Myth of the Numbers Game

Selling is not about spending hours on the phone calling hundreds of people hoping to find someone who will meet you. Selling today is about identifying a limited number of corporations that fit the parameters you've established and investing all your time working on getting into those companies.

The Power of Narrowing Your Market

Narrowing your market increases sales and profit. Not by a little, but by a lot. For many people, this thinking is counterintuitive. It just doesn’t feel right, especially if you are a young firm strapped for cash or a company that’s milking the cow and struggling with growth. The last thing you want is to walk away from potential opportunities.

Identifying Your Ideal Customers

The question you need to ask yourself is: “Which companies are most likely to buy your product or use your service?” In today's market, where there are endless choices of possible suppliers, companies want to work with experts who truly understand their business. They are so busy bringing people up to speed on their unique business issues and needs. They want to quickly assess if a seller’s service or product is a good fit and move on.

Crafting a Powerful Value Proposition

If your message doesn’t scream that you are a perfect fit for them, you will be eliminated from consideration. That is why defining your target is so important. When you are clear about it, you can craft a powerful value proposition. This will engage your customer so much that they will want to know more about your offering—soon!

Focusing Your Efforts

A well-defined target market increases the effectiveness of your marketing and sales efforts because everything you do is focused on your target customer. Buyers will perceive your company as having greater expertise and superior products.

Knowing Your Audience

Having a target market means knowing the tradeshows they attend, the magazines and trade journals they read, the websites they visit, and more. You invest less money on sales and marketing with a significant improvement in results because prospective customers can find you more easily, and referrals go up. You differentiate your business from competitors, increasing your profitability.

The Risks of Being a Generalist

Companies that try to be “all things to all people” have higher costs, never establish a strong customer base from which to grow, and often disappear before achieving profitable growth. If you are like most people, it’s really hard to walk away from any potential business. Closing the door on some opportunities truly opens far more doors for you in others.

What's Next?

The key to success is to clearly define your ideal customer. That is what we will talk about next week in the “What’s Next!” newsletter.

Don't miss next week’s edition to learn how to create memorable and impactful experiences for your clients. See you then!