Who is my customer?
It is crucial that every startup be very clear about its target customer base. These are the people and companies you will help through your products and services.
Everyone is not your customer!
One misconception of new entrepreneurs is that they need to approach customer acquisition with the thinking that the whole world is your customer. While this might be potentially true for some products like fuel, drinking water etc., the fact is that, not every customer is going to need or like your offering, and the entire world is not going to become a loyal repeat customer. So, selling something to people who don’t really need it, or don’t understand its use, or are unlikely to like it, just leads to wasted resources and bad press.
If not everyone, then “as many as possible”?
Another common misconception is that every business needs “as many customers as it can get”. After all, the more the customers, the greater the market share and profit. However, this does not work out so well in the long run for most startups who struggle to scale, fail to maintain quality, and eventually lose customers.
So, what is the best way to find your target customer base?
Find and sell to the specific set of customers for whom you are delivering the greatest value or solving one of their most pressing and urgent problems. Find your target customer base that believes in your values and serve them well.
Then, look for ways to expand to other segments, but be ready to adopt new strategies and update your offerings to match the new target customer base.
Useful resources
Book- The Lean Startup by Eric Ries
Book- Crossing the Chasm by Geoffrey A. Moore
Google Trends- Explore trending topics and search queries related to your industry to understand customer interests.
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