When it comes to customer development, acquisition and retention, a lot can be said about what works and what doesn’t. It seems every day I read yet another random marketing guru explaining how they have a full proof plan to get you customers in a record amount of time. Or better yet, a service offering to scrape websites like Linkedin to get you “qualified leads” that are in reality as unlikely to convert as me posting this blog on the internet hoping it gets read organically. We both hope we’re wrong, but why bet on marginal chances?

Instead, I offer the idea to take a step back from the sales floor and really come to understand the different TYPES of customers that exist in a market place. From there, you can divulge the meaningful opportunities for each customer type, separate of each other, in order to maximize conversion effectiveness. In this brief blog post I would like to share my experience with identifying the 3 customer types that every business needs to know, why these types are so critical for any size business, and practical steps you can take today, to start tapping into these various markets for more meaningful results.

Before we dive in, I must do a shameless plug that involves my company, Enter Saga LLC. We just opened our client list for additional work and if you have a business that is needing our assistance with all things lead generation, customer development, community event management and more, schedule a call with me today.

1. No problem? No problem!

The first customer type that every business on the planet has the opportunity to interact with, is the customer that does not yet know they have a problem. At the end of the day, every single business in the world is attempting to solve someone's problem. Whether it’s a highly technical solution, consultation solution, financial or health related solution, heck even providing an entertainment solution, they all come from the underlying basis that people have problems and businesses try to fix them, usually at a cost.

But what if I told you there are people out there who don’t yet know they have a problem? The reality is, there are many people who don’t yet know (or understand) what they need in order to solve their problem. A B2B entity that is experiencing increased SLA times may not yet understand that the problem stems from a lack of SOP, rather than outdated software. Or a person with preliminary back pain has not yet been diagnosed with Sciatica and thus does not yet have the need for PT or medication. The list goes on.

The point is, there exists an entire network of individuals who could one day become your customers, but they have yet discovered their own problem. Steve Jobs even touched on this with his famous outlook on “don’t show people what they want, tell them what they want”. So before you start looking for people who already need your service, find those that are beginning to experience a problem but have not yet identified it as such. Utilize educational material and personal experience (classic pathos approach) to help them understand the problem in a way that guides them to your business solution.

• Challenge: Ask yourself today, what is the problem your business is solving and what does a customer look like that has NOT yet discovered they have the problem? Where can you find these people and what can you do to steer them towards your solution?

 

2. The Sales Floor

Our second customer type is one that every startup and business have at the front of their minds. It’s the customer that has identified they have a problem and are actively looking for a solution. An individual who has been diagnosed with Sciatica and is actively seeking PT trainers, or a person who is being audited by the IRS and now understands they need to onboard a CPA or formal accounting system to avoid penalization. This customer type is the most activated because they know they need a solution, but that also means they are the most skeptical. As humans we are very aware of pushy sales tactics and attempted covert marketing measures, and we typically stay away from anything that makes us feel uneasy. When a business is approaching this customer type to attempt conversion, the same trust barrier applies.

In my experience, free and educational material is the best way to approach type 2 customers because it removes the elephant in the room- money, from the conversation and instead focuses solely on value. It’s in this process that companies can establish trust and rapport with the potential customer and ultimately improve chances for conversion. Another great strategy for approaching type 2 customers is community events, providing a safe space to discuss the problem topic in a meaningful setting. For example I host various Meetup events around the topics of marketing and lead generation, as a place to provide free consultation and community feedback, while casually familiarizing the community with my brand. In time, even the most hardened prospect will convert, if you offer enough value.

• Challenge: Identify people that are actively looking for your business solution and design a strategy to offer them immense value for free. Build trust, establish relationships and make it a no brainer for them to choose your business.

 

3. Wait, Don’t Go!

Now that we’ve identified the type 1 customers; those that don't yet know they have a problem, and type 2 customers; those that are actively looking for a solution to their problem, we look down the timeline into post-sale territory. Once you have a customer (meaning they’ve actually spent their money on your product or service), the journey doesn’t just end. CRMs pride themselves on the ability to retarget and re approach previous customers for additional sales value, but type 3 customers are much more than that. Type 3s are those that have already purchased from you and now SHOULD be wanting to come back for more. Rest assured that every business has a potential to offer more. .

In the case of our Sciatica PT service provider, customers may want to return for follow up training. In the case of our financial services provider, there could be continued education offered to previous clients on the changes and updates to tax law, etc. The point is, type 3 customers are those that have entered your business ecosystem, spent money on your solution and are now waiting to be re-activated.

• Challenge: If you have customers already, set up feedback interview calls. Learn what they did and didn't like about your service, and see if there is anything more you can offer them. Ask them for referrals, and if they need your services to scale. The more you ask, the more you will find out.

 

Conclusion

The purpose of this 3 type model is to be as collectively exhaustive as possible. By identifying these customer types, you should be able to create unique and flexible strategies to engage with them, independently of each other. Remember that a type 1 customer is on a very different path than a type 3 customer, and a type 2 customer has very different thresholds for trust than a type 3. Be smart with this information, take into practice the challenges listed above and let me know how it goes. You can reach me on Twitter or set up a call with Enter Saga below!

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