The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs.
The first step of the Customer Analysis is to define exactly which customers the company is serving. This requires specificity. It is not adequate to say the company is targeting small businesses, for example, because there are several million of these types of customers. Rather, the plan must identify precisely the customers it is serving, such as small businesses with 10 to 50 employees based in large metropolitan cities on the West Coast.
Once the plan has clearly identified and defined the company's target customers, it is necessary to explain the demographics of these customers. Questions to be answered include: 1) how many potential customers fit the given definition? is this customer base growing or decreasing? 2) what is the average revenues/income of these customers? and 3) where are these customers geographically based?
After explaining customer demographics, the plan must detail the needs of these customers. Conveying customer needs could take the form of past actions (X% have purchased a similar product in the past), future projections (when interviewed, X% said that they would purchase product/service Y) and/or implications (because X% use a product/service which our product/service enhances/replaces, then X% need our product/service).
The business plan must also detail the drivers of customer decision-making. Sample questions to answer include: 1) Do customers find price to be more important than the quality of the product or service? and 2) are customers looking for the highest level of reliability, or will they have their own support and just seek a basic level of service?
There is one last critical step in the Customer Analysis -- showing an understanding of the actual decision-making process. Examples of questions to be answered here include: 1) will the customer consult others in their organization/family before making a decision?, 2) will the customer seek multiple bids? and 3) will the product/service require significant operational changes (e.g., will the customer have to invest time to learn new technologies? will the product/service cause other members within the organization to lose their jobs? etc.).
It is essential to truly understand customers to develop a successful business and marketing strategy. As such, sophisticated investors require comprehensive profiles of a company's target customers. By spending the time to research and analyze your target customers, you will develop both enhance your business strategy and funding success.
As President of growthink business plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
shuttle from O'Hare Brocton .. Lockport Chicago limo O’HareHere's why 'WHY' is such a profit-making marketing trigger."Stop taking... Read More
Whether your target audience is in your neighborhood or across... Read More
Starting and growing a small business can be a daunting... Read More
If you plan to do business online, then your website... Read More
I've got good news and bad news. The good news... Read More
Administrative and clerical tasks are the bane of every industry.... Read More
Why give freebies?We have all seen freebies at trade shows... Read More
If you own a mobile car washing, pressure washing or... Read More
If you own a small business, then you know the... Read More
You only have so much time in a day right?So... Read More
There are both fixed and mobile detailers. Consumers often will... Read More
E-mail and Internet use are integral parts of the typical... Read More
Let me get right to the point. The single most... Read More
Hogwash!That's what I say to people who tell me that... Read More
1. Look Over Your Shoulder ? Of course, Punxsutawney Phil... Read More
Owning a business is a challenging endeavor. If you're like... Read More
Just when the entire state was kissing Wichita goodbye, economically... Read More
Does your company have a community relation strategy? Have you... Read More
Many experienced auto detailing professionals who have started out using... Read More
THE PSYCHOLOGY OF PRICINGIn case you hadn't noticed, people can... Read More
TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to... Read More
How do you find the best business partners?Finding a good... Read More
What image do you and your people portray to your... Read More
One of the most common horrific mistakes a business can... Read More
Last week's question from Anthony R. on how to choose... Read More
Chicago charter limousine service Hickory Hills ..Unfortunately for all buyers, each selling organization and their individual... Read More
This morning, I went to take a short walk outside.... Read More
One of the hidden perks of raising six children is... Read More
When should you create a foundation in order to solidify... Read More
Here are some useful tips on how to select a... Read More
Now that you have invested your time, energy and money... Read More
Everyone loves a good story. Whether it's the story of... Read More
If you're just ramping up your small business email newsletter,... Read More
Every employee would like to earn as high a salary... Read More
Many new ventures are preoccupied with all the money they... Read More
So you want to start a business but you don't... Read More
The reason we Franchisors call it an exclusive territory is... Read More
The air in my client's office nearly crackled with her... Read More
Discover How Specialized Cost Containment Creates A New Win-Win Position... Read More
We all know how glorious those first warm days of... Read More
Experts urge small business owners to "brand" their business ?... Read More
Treat your business as a serious, full-time business and be... Read More
You're pretty proud of yourself! After all, only four months... Read More
Starting the blind cleaning business is one of the best... Read More
It's Monday morning and Connie the Consultant sits in her... Read More
Many experienced auto detailing professionals who have started out using... Read More
If you are in a franchise and have a territory... Read More
The American system of business management has been admired and... Read More
Most business owners do not think of selling their companies... Read More
While I was hard at work last week, an everyday... Read More
Small Business |