A few days ago I was reading to my little niece one of the most famous fairy tales called “Cinderella”, and after finishing the story I got one surprisingly good question from my little princess:
“Uncle, how can I find a perfect prince on a white horse? ”.
Wow, what a question to be asked by a 4 year old girl.
I admit she caught me unprepared for this kind of question, at the end what to tell a 4 year old kid about idealization of the perfect solution (prince) in modern human society that created illusion of the one and only perfect solution (in real life hardly there is only one solution) for millions of people during last few decades?
So, giving my best to improvise an answer in a second I explained her the first thing that popped into my mind – a business case:
“Look dear, searching for a prince on a white horse is like choosing ideal customer, first you need to define geographic location of your ideal customer, then you need to define age, relationship status, needs, habits and whatever else that you would like to see with your ideal customer and voila, you get your prince! ”
I was very proud how I managed to explain my niece how should she put search criteria for her perfect prince on a white horse (when she gets ready for it :)), but while she was looking at me a bit confused I realized how much this fairy tale has to do with real business.
Who is your prince (the ideal client of digital marketing agency)?
As in this explanation to my niece about how to set up criteria for the prince, similar thing can be done for a digital marketing agency in order to find the right customer.
But let’s start with defining the “ideal customer”:
- In theory all customers are good customers but in reality things can sometimes be slightly different. One of the best advices the agency can get is to stick with Pareto principle which says that 20% of your customers are making you 80% of your revenue and vice versa.
Having that in mind, the ones that you would like to get are in those 20% and your ideal customer is the one that is already making80% revenue to your industry standards.
- Keeping already satisfied customer happy and upselling to him is approximately 7 times easier than getting a new client on board. If we translate it to the concept of ideal customer, it would be the one that has a habit of maintaining long term relationship and having no problem buying from you multiple times (have a look at our article about recurring revenue streams) , different kinds of services.
- Ideal customer would be the one that truly loves your company and the one that gives you referral on regular basis. Those customers are the ideal ones, even though sometimes they don’t necessary need to be in those 20%.
How to define ideal customer profile for digital marketing agency?
After you`ve roughly figured out who is ideal customer of your digital marketing services, you can start making deeper analysis that would give you precise direction for your sales and marketing activities:
- Step No. 1 – Personalize it. Give your ideal customer a name. Even though everything is virtual in this step, we as human beings have instinct to visualize and personalize things a lot so by giving a name to your ideal customer you can make your engagement better.
- Step No. 2 – Find him. Define geographic location of your ideal customer. If you are digital marketing agency probably the fastest way to get to the ideal customer is to define geographic location in which you are recognized as trusted advisor and then you can expand your region.
- Step No. 3 – define industry type that you would like to target. One of the ways you can do this is by looking at your own specialties and then choosing industry that you know inside out.
- Step No. 4 – define company size and ownership model you would like to target. Public sector? Government or private owned companies, which would suit you the best? It is up to you to align this criteria with your company strategy and be clear with who you would like to work with.
- Step No. 5 – ….well the list goes on so Step No.6 would be to download our free e-book that will help you define your ideal customer. Don’t worry it is free….mostly because we truly believe that this book will help you as it helped us and that you would share it with your friends.
As in life, perspective of ideal prince (or princess) is changing during the time as we grow and our company gets mature. So there is no “one and only” perfect solution for you or anybody else in the world and creating the right customer profile should be a part of your yearly strategy, revised each and every year and aligned with your business focus and future scalability.
Would you like to know how to make ideal customer profile?
Download our free e-book: “8 steps how to create customer profile” by clicking on the picture below.