In marketing, we like to talk about “ideal customers” for businesses and emphasize the importance of “knowing your customers.” How this performs properly is still a mystery to many companies.
Simply defining Business-to-business (B2B), college students, or parents as your ideal customer can leave many opportunities on the table.
As part of the Customer Lifetime Value analysis, the first step is to identify your ideal customers. Creating an ideal customer profile or a buyer persona helps you track and calculate whether the group you identified as ideal customers is, in fact, ideal for your business.
In this guide, I want to talk about what an ideal customer means to your business, where to get your customer data, and how to analyze that data to create an ideal customer profile.
First, let’s make sure we are on the same page when referring to ideal customers or clients.
Which customers are considered ideal? If your answer is “customers that buy the most or that are most profitable,” you may want to continue reading.
Who are Ideal Customers or Clients?
According to HBR’s “Choosing the Right Customer,” identifying the best primary customer involves these three dimensions: perspective, capabilities, and profit potential.
_Perspective _is the business’s culture and mission. _Capabilities _is the company’s core competency. Profit potential refers to the level of profit that a customer brings to the company.
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