In this economy, you may be tempted to cut prices to compete for new business, but this could actually be the exact wrong strategy for product or service. A big part of building a good business strategy is segmenting your customer base and targeting specific segments. The better you position and execute within your targeted segments, the more you will grow. Take a fresh look at your target segments—look beyond customer size, geography, industry group, or other traditional demographics, and instead focus on the need or want that your company can best serve.
To get started segmenting your new customers, ask the following questions:
- Do your customers really only look for the lowest price no matter what? Or is there something else that influences them?
- Are your customers looking to be pampered?
- Are your target customers buying your product because it will save their life or someone elses?
- Are your target customers sensitive about the issue your product solves? Do they want to do business with people that understand their pain and can provide them with a proper experience to deal with this sensitive issue?
- Could you charge your customers more and still save them a lot of money if you helped them solve a problem.
Think like your customers and you just might find that price is not actually the deciding factor.
Howard Shore is a business growth expert who works with companies that want to maximize their growth potential by improving strategy, enhancing their knowledge, and improving motivation. To learn more about him or his firm please visit his website at activategroupinc.com or contact Howard Shore at (305) 722-7216 or email him.