We all hear of the amazing stories of how some businesses have been able to shift strategies to attain higher margins and have more fun. I recently heard of a chiropractor who broke out of the chiropractor rigid model of profitability and took a risk to make more and work less by opening a high-end sports wellness clinic. Due to this shift, he tripled his profitability and can actually take a vacation now. It sounds scary to take that kind of risk, right? But, if there was even the possibility of making more money with the customers we love, wouldn’t we at least explore how our company might be able to do this?
Our research shows it starts with WHO. Who is it you are trying to do business with on a regular basis? Who do you enjoy helping the most?
- Identify your Sweet Spot Suspect
Some may compare this to a ‘target customer.’ However, that description is much too broad. Plus, which part of the proverbial target are we trying to hit? The ‘Sweet spot’ refers to the customer that fits ‘like a glove’ with your company. This “suspect” is the Person and Situation in which your product or service is always the best choice. It is the customer that you say, “if just every customer could be like…” While working for them, you enjoy working, everyone makes money, and the sale aligns with your company values. Once you identify a handful of customers that fit this category, you research what characteristics make them special.
- Research your Sweet Spot Suspect
Find out what it is about them makes them the best fit with your product/service. Their age, income level, and frustrations are a good starting point, but don’t stop there. Research not only demographics, but motivators, situations, and when and how they buy. Mentally step in their shoes and look around. You should spend time with them with the intent of understanding them as much as possible.
- Ask the Question
Once you have identified these characteristics surrounding your Sweet Spot Suspect, leap frog your competition by answering this very important question: What is their pain or desire your product/service can solve? For example, Ferrari recently made a strategic shift by producing fewer cars to bring up demand and exclusivity. They determined the customers, or suspects, they want to buy their cars are those who will spring any price to be included in an exclusive club of Ferrari owners. Ferrari Company Chairman Luca Cordero di Montezemolo states, “The quality of the sales is more important than the quantity.” Ferrari’s strategic initiative brought higher revenue, profit and a stronger brand.
- Enjoy More Profits
Now that you know how to solve your favorite customers’ pain or desire, you design your product/service to solve it better than the competition. Focus product/service delivery, marketing effort, and even customer service to directly speak to the Sweet Spot Suspects. This effort and focus creates a superior experience for those customers. By creating raving fans, word will spread quickly to other Sweet Spot Suspects. Naturally, higher-demand, tailored products/services precedes higher margin.
Bonus: You do more profitable deals with customers you love.
Aspire to make more, work less or however you define success!
