Moving into new market segments can either be immensely rewarding or a dangerous game, depending on your expertise. Let’s look at how you can successfully select new potential target markets and attract them to work with you.
1. Concentrate your efforts
It might seem counter-productive to limit your customers rather than widening your net, but if you try to make your products or services appeal to too many people then you might have a big pool to target but your approach to reaching them will be too general.
If your products or services appeal to a smaller, more targeted audience, you’ll have fewer potential customers, but each prospect will be more likely to buy. A vertical targeting approach will improve your customer relationships, increase your competitiveness, create more sales opportunities, engage more senior buyers and accelerate your revenue growth.
By focusing business efforts on a few specific industries, you can achieve growth at a significant rate. You can download a guide to concentrating on the work you can win on Larato’s website here.
2. Put needs before categories
It’s customer needs, not product categories, that will generate your profitable market opportunities. Make sure that the market you’re interested in can generate the revenue you want by looking in-depth at the customer.
You need to take the time to understand customer behaviours, attitudes, pains and decision-making processes. From this you can undertake careful segmentation of your target market so that you can focus your resources and define your go-to-market strategy. You can download a free guide to understanding how buyers buy on Larato’s website here.
If you rush into a new market without thorough preparation, you will minimise your chances of success. Market intelligence will help you to enter your new market confidently, which is crucial for building credibility and generating momentum.
Make sure you have adequate references, experience and processes to operate effectively in your new markets. Understand the size and stage of the market as well as its unique risks and challenges, such as the disruption potential of emerging markets, so that you can sidestep problems and plan-ahead. Be clear about the size of your opportunity and how it could change over time. You can download a handy preparation guide on Larato’s website here.
4. Position yourself to win
Once you’ve identified an opportunity, you need to clearly understand your position within that target market. Understand your competition. Tailor your services if needed and tweak your marketing and sales accordingly. Don’t assume that because your current efforts have worked for other customer segments, they’ll be successful for your new target market.
You can download a guide to beating your competition on Larato’s website here.
5. Maintain your focus on ROI
Conduct a thorough marketing audit to understand what’s working in your current marketing mix. Work out what activity is delivering the best return on investment and shape your future marketing plan accordingly.
You can download a free guide to understanding what’s working on Larato’s website here.
Hopefully this advice has given you some food for thought when assessing your business growth potential. If you need some help following the steps above, Larato can help you.