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Nine Characteristics of a Target CustomerPosted 2/10/1997By Mark Delp
There has been much discussion recently over target customers, but what defines a target customer? Target customers are those consumers possessing certain characteristics that best allow you to serve them. For example, the ideal customer for Exclusive Motorcars, Laguna Hills, Calif., is one who lives or works within five miles of the facility, drives a newer model BMW or Mercedes-Benz, places a great deal of value on his or her vehicle and demands top quality automotive repair. But does that mean anybody who fits these characteristics is a target customer? The answer is a resounding NO! A true target customer is a person who possesses a number of characteristics that, when combined with certain business philosophies, provide for a mutually beneficial experience. Instead of spending all of their time trying to please all of their customers equally, successful shop owners focus all of their attention on pleasing their true target customers. This ability to distinguish between a customer and a target customer is what enables successful shop owners to improve customer satisfaction, cut headaches and increase sales. Following are nine characteristics of a target customer and why they are desirable. After reading all of the characteristics you should be able to look over your client base and determine exactly who should be a target customer and who should not. Trust - There should be a mutual feeling of trust between yourself and the target customer. This trust will help eliminate objections and make selling an enjoyable experience. I'm sure you have customers that trust you so completely that when they drop off their vehicle they just say, "Fix it. I trust you." I'm sure you also have customers that demand second opinions and believe anyone else who tells them what they want to hear. It's much easier dealing with those who trust you, and you should put more emphasis on them. Pays Promptly - Nothing hurts small businesses more than customers who don't pay or don't pay on time. "Can you hold my check until next year?" "Can I pay you next week?" "Why do you charge so much? I know people who can do it for half your price." Your target customer should be willing to pay your fee and pay it in a timely manner. You Can Solve Their Problem - What good is a customer who is willing to pay but can't because you can't fix their vehicle? List what types of problems you can solve easily using your existing equipment and keep this list in mind when determining who is your target customer. If a customer comes to you and you cannot solve their problem, refer them to someone who can. The customer will appreciate your honesty and will likely return in the future with a problem you can solve. Likes To Give Referrals - Word of mouth is the best and least expensive means of advertising. Why not target customers who enjoy telling other people about you? If you do promote referrals, always keep track of who referred who. This will give you an even better indicator of who your best customers are. Does Not Demand Too Much - Don't be afraid to tell a customer you cannot meet their demands. The customer who demands more than you would normally be willing to provide should not be one of your target customers. You all know this kind. The kind who comes in once a year at 4:30 for an oil change and wants to wait for it. If you do not generally do something, whether it's staying late, opening extra early or dropping everything for waiting oil changes - then don't do it for one customer. Your target customers will understand when you cannot accommodate them, and those that don't understand should not be your target customers. Ask yourself, how many times has your bank stayed open late for you? Has Good Business Ethics - Stay away from customers who ask you to perform unethical or illegal acts. There should be no need to further explain this point. Allows You The Opportunity To Correct Problems - Despite the best quality control policies, sometimes problems occur. A target customer will present the problem to you and allow you the opportunity to rectify the situation. A recent study conducted by the Harvard Business School indicated companies don't hear 80 percent of the complaints customers have, yet customers who do complain and whose complaints are resolved satisfactorily are more loyal than customers who never had a complaint. Always follow up with customers after they pick up their vehicles so you can catch problems when they happen and solve them. Does Business With You On A Continuous Basis - Many times I have seen shop owners give as much time and energy to the customer that comes in once a year as to the customer that comes in every month. The common sense tactic of focusing your attention on your best customers sometimes gets lost in the attempt to please every customer. Remember, you can please some of the customers all of the time, all of the customers some of the time, but never all of the customers all of the time! Understands What You Are Selling - As a quality automotive service center, your shop does not simply sell oil changes or brake jobs; your business sells complete vehicle maintenance. You pride yourself on hiring only the best technicians and using only the highest quality parts. Your target customer should understand and appreciate this higher level of service. I recommend that you talk with some of your target customers and find out what clubs or organizations they're members of. You will find that people with particular characteristics tend to associate with people possessing similar traits. Thus, by becoming a member of an organization that already includes some of your target customers, you will likely find several potential customers that, in time, will join your list of target customers.
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