Many people are afraid to declare a target market for fear of missing out on a potential sale outside of that market. The irony is that when you claim a specific market (or even several), your revenue and profit potential actually increase.
"Why is that?", you may ask.
Well, there are several reasons. Here are the top 3.
1. Clearer message to the market
If you haven't take the time (or found the courage) to discern and decide exactly who you're meant to serve, your marketing effectiveness will be weakened. If your 30-second commercial has the word "anybody" in it, you're at risk. Perhaps you could serve anybody, but from a tactical marketing perspective, when you get really specific, your message will become much more clear, helping you attract those perfect prospects to you much more easily.
2. Referrals flow more easily to you
One of my clients is a Merrill Lynch financial advisor. In the very beginning of our coaching relationship, she was resistant to the idea of picking a target market. She was eager to build her book of business and anxious about bringing in money from anyone who was willing to talk with her.
She's not alone. Many people are afraid that if they focus on just one specific market, that they will be leaving money on that table and turning away anyone else who might be a potential prospect.
Finally after a couple of conversations with this advisor, she came up with focusing on providing financial advising service to business owners, business executives, and divorcees.
She did it a bit reluctantly but in our very next call she reported, "I introduced myself with that line at a speed networking function I attended. When I said those words, I could actually see
the wheels in people's heads turning as they tried to figure out who they knew that fit those categories."
It's critical that you narrow your focus, even if you pick a handful (not a barrel full) of distinct groups.
3. Marketing effectiveness increases
When you can articulate clearly and specifically who you serve, you'll be able to find them more easily thereby reducing your cost of acquisition. The products and services you deliver can be tailored to your clients' specific needs. The tailored copy you use to describe your services will be all the more specific and sound like music to your prospects ears. The client attraction theory will finally start working for you.
So, reach down deep, find the courage you need and tighten up on your target market.