You must be familiar with ’barking up the wrong tree – looking for the right thing in the wrong place’ metaphor. Well, business is also about making the right choices and making them before any damage is done. In the glossary of business choices you will see that identifying the right customer is high on the ’to do’ list simply because a specialized target group will help your business bloom.
Right customers will give a focus to your business
You have the most amazing product never seen before or may be offering a service that no one deemed possible till now. Advertize it to a customer who has no use for it and even the best ad-campaign can’t help you. Why? Because, though your message was right, it wasn’t relevant to your customer’s needs.
Right customers will define your marketing strategy
Your marketing strategy will fall flat if your target audience is not defined. For example promotional products
like stationery, apparel or bags mostly cut across gender/class/age-group/socio-economic criteria categories but business gifts
like flashy golf clubs, car accessories may not really be enjoyed by someone who cannot afford entry into a golf field or doesn’t own a car.
Right customers will determine your success
A business is successful when it satisfactorily fulfils the needs of its customers. If you have correctly identified your target, it means you have correctly understood two things about them. They have needs which you can meet and they can afford to pay you for fulfillment of those needs.