Successful businesses get three things right.
The first thing they get right is their Ideal Client Profile. A number of years ago, I was at a conference where a senior executive of Wal-Mart was a presenter. When he came on stage, he said that all of us were welcome in their stores, but we were not their customers. He went on to explain that their customers were the individuals and families who lived paycheck to paycheck. That is why Wal-Mart offers everyday lowest prices.
Now, Wal-Mart’s customer profile may have changed over the years, but I was struck at the time by the power of their relentless focus on lowest price as a differentiator.
Your Ideal Client Profile is a hypothetical example of the perfect client. It includes both demographic and psychographic characteristics.
Demographics is the statistical analysis of populations i.e. age, income, net worth, marital status, type of employment, location, etc.
Psychographics is the classification of people according to their attitudes, aspirations, etc.
At The Covenant Group, we recommend that you identify five demographic factors and five psychographic factors to paint as complete a picture of your Ideal Client Profile as possible.
Once, you have a clear Ideal Client Profile, you are in a position to address the second thing you have to get right – your Value Proposition.
We live in an experience economy. Your Value Proposition is an amalgam of all the elements that create a unique experience for your clients/customers.
Larry Keating is an entrepreneur who understands the importance of a unique value proposition. Over the last 20+ years, Larry has been involved in a number of very successful technology businesses. His latest venture is NPC (No Panic Computing).
The company provides small and medium size enterprises with a way to make notebooks easy to use (with one integrated package), safe and secure. We were also concerned about professionally securing our confidential information on our notebooks to protect us and our clients, and NPC does that.
Recently, I was in Chicago and someone knocked over my luggage and damaged my laptop. When I opened it up, the screen was cracked and the hard disc had been damaged. I called NPC to report the problem. It was late in the afternoon and I was on my way back to Toronto.
The next day, I had a new laptop and had not lost any of my files or data. NPC provides continuous backup and 24/7 technical support. Now, I do not have to worry if my notebook is damaged or stolen.
NPC’s Value Proposition is a fully integrated notebook solution for small businesses that provides the support, safety and storage capabilities that much larger companies with IT departments take for granted.
The third thing is the Right Price.
People want to feel that they are getting a fair exchange of value. In turn, companies have to price their products and/or services to ensure the financial viability of the business.
NPC provides a fully loaded, state of the art notebook with backup and encryption. This removes the hassle and worry for the small business owner who does not have an IT department.
People will pay more for a product or service if it provides benefits that they value. For a non-techie like me, the integrated solution that NPC offers is worth the price.
When you have the right client, the right value proposition and the right price, the client wins and the business wins.
Head to our blog “The Importance of the Value Proposition for the Success of Every Business” to dig deeper on how high performers attract the right clients.