Market Before Customers

I have a saying when we begin a project that goes like this, “Market before customers.” This means that we are looking to identify the market/s our clients can be successful instead of randomly looking for new customers. The reason we do this is because if we can detect a pattern of needs that are unmet in a market, we immediately have a competitive edge with numerous companies not just one.

This is not easy and requires our clients to be thoughtful and creative in how we approach each new business. We do not just go through the motions. We are rigorous and ask good questions, so we understand the competitive realities of the prospect’s market. Many times, the insights we get from one company will apply to other companies in their industry.

We start this process by identifying an Ideal Customer Profile (ICP). This is a quick strategic way to identify markets that may be best suited to our clients. The ICP includes 3-4 characteristics that direct our prospecting efforts.

Here is an example of the original ICP for an injection molding client.

• • Spend annually 2 million or more on injection molding
  • Products were used in hostile environments – outside, water, electrical
  • Used engineering grade resin in their products

Our client believed that if we developed relationships with companies that fit these characteristics, they could be competitive and win their fair share of business. This gave our sales/marketing approach a specific direction and over the next 6 months, together we determined whether this was actually the right direction.

It turned out that their inclination was right, and we landed approximately 15 new customers over the next few years and 90% of these new customers met the original ICP. Focusing on a market requires everyone to pay attention to the sales process. Identifying a market or two requires executives to think about their company and why they can compete in a certain market. This approach leads to a more strategic and thoughtful way of approaching sales and that is why it works. Smart selling requires thinking and smart selling grows businesses.