Knowing Your Ideal Customer: A Smarter Approach to Growth
One of the biggest mistakes I made when I launched my original business, was to market to everyone. It’s tempting to believe that casting the widest net will bring in more customers, but in reality, this scattergun approach leads to wasted resources, ineffective messaging, and frustration. If you want to work smarter, not harder, you should always focus on the right people: your ideal customers.
Understanding exactly who these people are allows you to market more effectively, sell more efficiently, and create products or services that truly resonate. However, defining your ideal customer requires a balance between logic and instinct – what your chimp brain (emotional) wants to believe and what your human brain (rational) can prove.
A Systematic Approach to Identifying Your Ideal Customer
Instead of guessing who your best customers are, take a structured approach to gathering insights. This ensures you make decisions based on data rather than assumptions.
Step 1: Analyse Your Existing Customers
The best way to identify your ideal customer is to look at the customers who already buy from you. Ask yourself:
- Who are your most loyal customers?
- Who spends the most money?
- Who is easiest to work with?
Now look for patterns among these customers. Consider both demographics and psychographics:
Demographics (Who They Are)
- Age, Gender, Location
- Income level, Education level, Job role or industry
Psychographics (Why They Buy)
- What problems do they need solving?
- How are those problems making them feel?
- Can my product or service solve these problems?
- What influences their purchasing decisions?
- Where do they spend their time (both online and offline)?
Step 2: Gather Additional Insights
If you don’t have enough information, go straight to the source. Conduct surveys, interviews, or even informal conversations with existing customers to understand why they chose you. Some useful questions include:
- What problem were you trying to solve when you bought from us?
- What made you choose us over competitors?
- How did you find out about us?
- What do you value most in a product/service like ours?
You may be surprised by the answers – sometimes customers see value in things you hadn’t considered a key selling point.
Step 3: Create a Simple Customer Profile
Once you’ve gathered your data, consolidate it into a customer profile sheet. The level of detail is entirely up to you but keeping it simple ensures you avoid analysis paralysis and can take action quickly. Your profile should answer:
- Who are they?
- What do they need?
- Why do they buy?
- Where can you reach them?
- How can you best communicate with them?
This profile helps you tailor your marketing messages, choose the right sales channels, and even refine your product or service offerings.
The Head/Heart Approach: Making Smart Business Decisions
Creating an ideal customer profile can feel counterintuitive. Your chimp brain may resist the idea of narrowing your focus, fearing that you’ll lose potential sales. But your human brain knows that working smarter means making informed, strategic choices.
Focusing on your ideal customer doesn’t mean rejecting other buyers – it simply means prioritising those who are most likely to buy, stay loyal, and spread the word about your business. By doing this, you improve your marketing efficiency, close sales faster, and build stronger relationships with the people who truly value what you offer.
Conclusion: Take Action and Work Smarter
Knowing your ideal customer is one of the most powerful ways to grow your business. Instead of trying to appeal to everyone, take a systematic approach:
- Analyse your existing customers to find commonalities.
- Gather additional insights through surveys or conversations.
- Create a simple customer profile to guide your marketing and sales efforts.
By working with a clear understanding of who you should be targeting, you avoid wasted effort and increase your chances of long-term success. Work smarter, not harder – make decisions with your head, not just your heart, and watch your business thrive.
If you’d like my guide to building a customer profile in four steps, which includes a customer profile sheet, you can download it here.