Finding Your Target Customer

In order to clearly detect your target customer, we first need to build a list of all your customers. 

Your objective is to fill out this information for each customer

  • Their name
  • Relevant facts about them
  • What they buy from you
  • Revenue they’re generated for your business (lifetime and in the past 12 months)

Your goal is to rank customers by revenue. It’s important to fill out this list because it’s important to see patterns of buying behavior that only emerge when customers are ranked this way.

Now look at your list and consider a few questions:

  • Which customers have provided you with the most revenue? Typically the top 20% of your customers provide around 80% of your revenue.
  • What do you know about your top customers? What’s their role within their companies?
  • What do your top 20% of customers buy?

(If you’re a little — or a lot — hazy about your top customers, beyond the fact that they’re your top customers, don’t worry. There are some good ways to learn more about them, which we’ll discuss shortly.)

Why am I focusing on your best customers, and not all of your customers?

  1. They spend more money!
  2. They’re typically more loyal to your company/brand.
  3. They typically take up less of your time.

The key message here is that your goal should be to develop a deeper understanding of your best customers so you can:

  • Keep selling to them,
  • Sell more to them (often at higher prices), and
  • (very important) Find more customers exactly like them.

Great book for more information: 80/20 Sales and Marketing

Does your company need a helping hand creating content to reach your target customers? We’d love the opportunity to work with you. Please take the first step and tell us about your situation.

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