In this lesson, we'll dive deep into understanding your target customer – who they are, what they need, and how to identify them. This knowledge is crucial for effectively selling products and building customer loyalty.
Every product is designed for a specific group of people. This group is your target customer. They share common characteristics, such as age, income, lifestyle, and interests. Understanding these traits helps you tailor your sales approach.
Example: Imagine you're selling high-end fitness trackers. Your target customer might be health-conscious individuals aged 25-55, with a higher disposable income, and an interest in fitness and technology.
Customers have needs (things they require) and wants (things they desire). Needs often drive purchasing decisions, but wants can also play a significant role, especially in discretionary spending.
To understand a customer's needs and wants, you must: listen actively, ask open-ended questions, observe their body language.
Example: A customer buying a laptop needs something reliable for school. They want a stylish, lightweight model from a trusted brand with good reviews. Ask them questions like, "What will you mainly use the laptop for?" and "What features are important to you?"
Target customers are rarely a homogenous group. Customer segmentation divides your customer base into groups based on shared characteristics. Common segments include:
Understanding these segments helps you personalize your sales approach and provide targeted product recommendations.
Example: In a clothing store, you might segment customers by age: teenagers, young adults, and mature adults. Each group will likely have different style preferences and purchasing behavior.
Once you understand the customer and their needs, you can connect them to the appropriate products. This involves matching product features and benefits to customer needs and wants. Focus on how the product solves their problems or fulfills their desires.
Example: A customer comes in looking for a durable phone for their active lifestyle. You might recommend a rugged phone that's water-resistant and shock-proof, focusing on how it can withstand their active lifestyle and give them peace of mind.
Explore advanced insights, examples, and bonus exercises to deepen understanding.
Welcome back! Yesterday, we focused on understanding your target customer's needs and identifying them. Today, we'll go deeper, looking at how customer understanding translates into sales success and lasting relationships.
While understanding demographics (age, gender, income, etc.) is crucial, consider the psychographics of your customers. Psychographics delve into their lifestyles, values, interests, and attitudes. Understanding these aspects allows you to tailor your product recommendations and communication style far more effectively.
For instance, consider two customers looking at a high-end hiking backpack. One, based on demographic data, is a young professional. The other is a retired individual. Demographics might tell you something, but psychographics offer more insights. The young professional might prioritize aesthetics, technology integration, and social media appeal of the backpack. The retiree might value durability, comfort, and a proven reputation. Adjusting your sales approach based on these differing psychographics (not just demographics) is key.
Key Psychographic Factors to Consider:
Choose a product you sell. Create two distinct customer personas. For each persona, include:
Spend some time observing real customers (in person or online). Identify their likely demographics and then, based on their behavior and questions, try to infer their psychographics. How might you alter your sales approach based on your observations?
Successful sales associates don't just recite product features; they build relationships. Understanding your customer's needs, both stated and unstated, allows you to:
Analyze customer reviews (online or in-store feedback) for a product you sell. What insights can you glean about your target customer's needs, expectations, and pain points? How can you use this information to improve your sales approach or inform product recommendations?
Consider these topics for future exploration:
Think about the products you sell. Choose one product and create a profile of its target customer. Include details like age, income, interests, and needs/wants.
List three customer 'needs' and three customer 'wants' related to a product (e.g., a smart phone, a car, a coffee maker). Briefly explain why each is a need or a want.
Pair up with a colleague. One person plays a customer with a specific need (e.g., needs a warm jacket for winter). The other person is the sales associate. The sales associate needs to ask questions to understand the customer's needs and recommend a suitable jacket, explaining the features and benefits in relation to the customer's needs.
Observe customers in your workplace for one hour. Note their behavior, questions, and product choices. Afterwards, write a brief report summarizing customer needs and how these needs can be addressed by sales associates.
Review the main features and benefits of the products you sell. Be prepared to answer customer questions about these features in the next lesson, which will focus on product presentations and handling objections.
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