I met with one of my clients yesterday and we talked about his target market, I had a conversation with a friend who runs her business and we talked about her target market. I had a phone call with a potential referral partner to discuss our referral strategy and we talked about our target market.
It seems that Target Market is an important subject, and one that every business should focus on clarifying. So why does it seem so difficult, for businesses and solopreneurs to identify a target market? Not having clarity on this topic creates a whole host of problems;
1. You spend your marketing money using an ineffective shotgun approach that nets low value results.
2. You find yourself networking at completely inappropriate places. If I sell cars and I know that 65% of all new car purchasing decisions are made by women, then I am going to go network with women and other businesses who sell to women, not a room full of men.
3. You end up having the wrong conversations with the wrong people at the wrong time. Because you are looking for anybody who needs your services you waste a lot of time talking to everybody even when they are the wrong somebodies.
4. You cannot develop a good referral partner and you end up with a lot of sources who are referring you low level, low value leads. A good referral partner has the exact same target market as you do, you are focused and you have a strategy for developing referrals.
5. You miss great opportunities because you are so busy taking care of the low value clients and customers that your high value opportunities are passed by.
10% of your clients create 80% of your income and 10% of your clients suck up 80% of your time and generate little income, why would you use shotgun approaches that only net you more of the latter? If you focus on the top 10%, spend your time and money seeking more of them, the other 80% will just show up and you will be able to regularly clear out the bottom 10% thus freeing up your time to nurture the top 10%.