Create a CLEAR customer profile
Margaret planned to open an upscale housewares store in a mountain town resort. While she knew how important it was to know who her customer is, Margret just wasn’t sure. She thought back to her customers at her previous position at a housewares store in NYC. Even though she had grown up in the town, she also carefully watched the tourist crowd to be sure things hadn’t changed.
She sketched out the customer profile: 28-60 yr old females, mostly moms or grandmothers. She knew that they wanted special or memorable items, even if they cost more. They were buying memories of the trip as much as they were buying housewares. Plus, they would spend more because they were on vacation, it would likely be an impulse buy.
The customer wants to be surprised in that they saw something really advanced, nostalgic or colorful. She selected groups of items which could be sold together at different price points. In the end, Margaret had a clear idea of what her ideal customer is; now she could develop marketing materials with that target in mind.
Greg and Pete were developing a computer program using algorithms to predict where wheat prices were going. Greg was previously a state wheat agronomist who wrote reports which were closely followed by farmers and traders. Pete used to sell computer programs that traded stock to hedge funds. They weren’t sure who exactly they would sell to.
Greg thought they should sell monthly predictions and information to 30-60 yr old wheat traders and farmers across the Midwest. This group would want emailed reports monthly and the ability to communicate to Greg for $1,500-2,000 monthly. Pete wants to target hedge funds in New York who would invest a block of money into their wheat trading computer program. Greg and Pete wanted to eventually serve both markets but they had to make a decision on which consumer profile to use.
Ted had these great doctors and nurses scrubs to sell, but wasn’t sure how to sell them. He knew the big hospitals were not going to work since they rented scrubs from linen companies who used the cheapest scrub they could find. Ted did know that the elective surgery clinics, like plastic surgery, orthopedic surgery, as well as dentists and ob/gyn wanted to look better and more professional. Plus, they had the money.
Ted realized that his target audience was the head nurse aged 35-60 yrs old. They wanted the staff to look good and professional. As they were probably on their feet all day, they wanted comfort. Pricing could be an issue. Nurses likely did their research online, at scrub stores and at nursing conferences. They also bought online and at retail stores, typically once annually. He also realized that the doctors also signed off on the purchase. Ted had a clear idea of the customer, which would impact his marketing and distribution.
FAQ & Resources
What is an average transaction amount (ATA)?
This amount is the the average value that a customer buys each time from the company.
What is the annual purchase amount (APA)?
This amount is the average value that a customer purchases each year.