Okay, maybe the title has a hint of click-bait to it. But I use it because I was talking to one of my #bizbesties about understanding your market and when I asked the question, she got this deer in the headlights look.
“I never even considered that!” she said.
Most people haven’t. Confession: even I didn’t really dig into this when I first started my biz, and I know better. I’ve been involved in writing over a dozen business plans and understanding your market at this level is always top of the list.
I focused on my customer’s problem – which is absolutely the most important thing to understand. What problem do my target clients have that I am most well equipped to solve?
I looked into the competition. Who else is coaching and consulting in my area?
I researched the prices others were charging. How do I design packages that will be competitive?
Important questions, for sure. But, like most people, I stopped there.
Then, I started diving into the world of creativity and innovation training and the question came up quickly. I was working to determine the best target market for my workshops and training – specific types of industries and companies. It suddenly hit me. How could I not have asked this from the very beginning, I thought.
The question? The one I forgot? The one most people never even consider?
How much are your customers spending on your product or service each year?
It seems so obvious, especially when you really niche down on a target market. It doesn’t make sense to focus on creativity training for, as an example, small mom and pop restaurants if they don’t ever spend money on that kind of training.
However, if I know that process-driven manufacturing companies are always thinking about how to be more creative so they can increase efficiency, and they spend money to bring in trainers to work with their employees – that makes sense as a target market.
Have you looked into your target customers spending habits when it comes to your product or service? If not, I challenge you to dedicate some time to research it.
Want to know some other important, but often missed questions, when it comes to understanding your market and industry? Get my free Understanding your Market checklist.