[strategy] Your Strategy: Find & Keep Ideal Customers

You may have heard this quote: “The purpose of a business is to create and keep a customer” -Peter Drucker

One of the best presentations I attended at the Scaling Up Summit in October was by Christo Popov, a coach for fast-growing businesses in Europe.

He started with that quote, and simplified strategy down to three crucial elements – 

  1. ​​​​​​​​​​​​​​What is “the market” for your goods and services? 
  2. ​​​​​​​​​​​​​​Who is your ideal customer?
  3. ​​​​​​​What do customers need?

​​​​​​​-> and then figure out your most profitable offering: “What almost no companies offer but [most] or some clients care about.” [credited to Kevin Daum of the Awesome Experience.]

​​​​​​​Sounds so SIMPLE right?

​​​​​​​Yet according to statistics Christo shared:

  • ​​​​​​​75% of businesses have not clearly defined their capabilities
  • ​​​​​​​90% admit to missing opportunities
  • ​​​​​​​80% of employees don’t understand their strategy
  • ​​​​​​​8% of those with a clearly defined strategy actually execute it well!

​​​​​​​The moral of the story is that this lack of strategic focus and execution planning by your competitors is leaving a potentially underserved client-base for you. 

​​​​​​​This is the concept of a “niche” business.

​​​​​​​When you offer something your competitors do not and your customers want it… you have more pricing power and higher revenues and profits. 

​​​​​​​This is far preferable to being a tiny fish in a big ocean of companies with a commodity competing on price. Based on economic theory, they beat each other up on price until it’s “perfect competition” – meaning very small profits. That’s not the ideal business to be in.