The customer is always right when it comes to being “the customer.”
3 things customers have taught me about the value of a well thought-out market strategy:
- Master the market
- Be the customer
- Cut to the chase
Now accomplishing these 3 things is not easy, but I’m a sucker for finding simplicity wherever I can, and I find it when focusing on answering Who, What, Where, When, How, and Why. Whether it’s framing discussions with customers about the market, or framing a strategy rooted in customer insights, answering the fundamental questions not only helps keep my thought process sane, but on task.
Mastering the Market
For me, “mastering the market “is all about answering: who is the audience, what are their pain points, and where are they heading? The answers to these questions are about truly understanding the customer, their challenges, and their directives.
Start first with the market – this is the easy part. You should know what market you want to attack. Then comes the more detailed exploration – segmentation. Gather as many relevant data points from as many sources to paint a picture of the segments that make up you market. Each segment may have unique customers, and unique users. Understanding, the customers and more specifically, the users is the critical component to “mastering” the market. Each customer/user will have financial, operational, and technical challenges you need to uncover. At the same time, users act based on directives. Directives may be imposed by leadership, or direct management and they tend to be economical, philosophical, and/or aspirational in nature.
- Economical: Reduce costs by X% (Who hasn’t said this?)
- Philosophical: Quality is job 1 (Ford)
- Aspirational: A computer on every desk and in every home (Microsoft)
Understand how these high level directives impact how your users think, plan, and act. Will they be looking for ways to reduce costs? Will they be more influenced by reliability and quality metrics? Or, will they be looking for creative ways to add value?
Be the Audience
You have broken the market up into segments. You have defined your target customers / users. You know their specific challenges and directives. Now put yourself in their shoes and get into their heads – when, how, and why do they buy the products and services they buy?
Answering when do / will they buy is about understanding their buying triggers, hurdles, and most importantly, their timeline. Are they developing a new concept? Are they already implementing and testing the concept? Or, are they committed and in full deployment / production mode? Depending on where they are in their timeline, not only are the buying triggers and hurdles different, but who you need to connect with in terms of participants, influencers, and decision makers will differ. Here is where understanding the customers’ / users’ buying process is critical to an effective strategy. The buying process is all about answering how they buy?
It does not stop there. Too many times, we forget to ask why? Why do they buy or more importantly why did they not buy? What is the customers’ / users’ rational for making a buying decision? I have found that they tend to be economic, philosophic, or empathetic in nature.
- Economic: “I bought because it was the lowest priced solution, or offered the lowest TCO (total cost of ownership).”
- Philosophic: “I bought because it was the lowest risk solution relative to the ROI (return on investment).”
- Empathetic: “I bought because we have a strong relationship, and they share the same vision / goals as ours, or are best equipped to enable us to achieve our goals.”
Knowing why customers/users buy or not buy can be extremely valuable information when putting together your strategy. Combine this with knowing when and how they buy and the strategy you put together has some serious teeth.
Cut to the Chase
Mastering the market is about identifying who is your customer. Being the customer is about truly appreciating what keeps them up at night (their challenges) where their heading (their directives), when will they get there (their behaviors), how will they get there (their processes), and why they buy what they buy to get where they are going (their rationale).
Cutting to the chase is nothing more than putting it all together into clear, simple, and concise positioning, messaging, and content designed for your customers, by your customers. You know the challenges. You know the directives. You know the behaviors, processes, and rationale, so cut to the chase and communicate to exactly who you need to with what they need, when they need it, and why.
It’s amazing when you really listen to the customer, how right they actually are, and how much they are willing to teach us about marketing.
Is it really that simple?