In addition to capital when starting a business, we need to determine who the potential customers of the business are, so that we can have a better approach and service to bring productivity, high turnover at work. So, what is a potential customer? How to identify the correct potential customer, let’s find out with Malu Design through the article.
What are your potential customers?
Potential Customers are a group of customers who are interested in products or services and have the ability to pay for the products and services that the business provides in the market. However, customers have not paid for ownership for some reason.
Potential customers have 4 characteristics that businesses need to pay attention to:
- Is a group of people who are interested in the service or product you provide.
- A group of people who already know about the service or product you provide, or may not know it at all.
- Same service, product but they have too many choices so they are confused.
- Potential customers intend or have used the service or product at your competitor’s company.
Compare potential and target customers
Target customers belong to the group of businesses that have been targeted before. They absolutely have the need and ability to pay for the business.
Target customers are of two types: potential customers and real customers. Thus, target customers include potential customers.
- Potential customers are interested in products and services and have conditions to pay. However, they have not spent money to own the product.
- Real customers have to pay a certain fee to use the service or product.
In particular, businesses will bring many benefits when distinguishing potential customers and target customers:
- Helping businesses save time in researching and classifying each customer group.
- Can easily consult, as well as take care of customers .
- Each group of customers will easily set a conversion goal.
- Helping businesses facilitate business performance evaluation.
What is the role of the prospect?
Potential customers play 3 important roles in the business of the business, such as:
1. Directly bring revenue to the business
Potential customers are the target group with a very high rate of becoming official customers. Then, they will agree to pay to use your service or buy your product, thereby directly generating revenue.
2. Is a 0-dong marketing channel of the business
Once potential customers become official customers, they will share and call their relatives, family, friends, etc. to use services and products of the business, if the quality of services and products is really good product. Each customer really becomes an effective advertising channel for your business.
3. As a criterion to evaluate the effectiveness of sales and marketing
The effectiveness of marketing is reflected in the business identifying the right potential customers and finding more and more potential customers proves the ability of the marketer.
Why is it important to identify potential customers?
Identifying the right potential customers will bring many benefits, profits, as well as promote the development of the business. The 4 benefits that potential customers bring are:
1. Increase the number of loyal customers
In case, potential customers accept to give up the cost of using services and products and become official customers of the business, that is a good sign. If you give them a good, perfect experience, then surely they will return to use your products and services and become loyal customers.
2. Increase sales
When the business has satisfied the requirements and desires of customers, it is inevitable that you increase revenue. Thereby, your products and services will be known and trusted by many people when buying or using the service. And when potential customers are identified, businesses will have solutions, as well as marketing strategies to help them gain benefits now and in the future.
3. Increase the number of potential customers
When customers have a positive experience with the product or service you provide, customers will be willing to recommend the product to many people who need it through many forms. This will help more people know about your products and services and bring conversions to your business.
4. Re-evaluate the effectiveness of business activities
Your business performance will not be effective, even less effective if you identify the wrong potential customers. On the other hand, your business must spend a lot of money and resources in the business process.
Steps to identify the correct lead
To identify accurate leads, businesses need to take three steps:
- Identify target customers.
- Categorize target customers.
- Identify potential customers.
However, depending on the way of doing business, each business will be flexible in choosing the sequence of steps.
1. Identify target customers
To identify target customers, businesses need to rely on the following criteria: Who are they, where do they live? What is the age? What profession? Work where? What are their hobbies? What makes them buy the product?…
If the business already has a product, the process of identifying target customers will be much easier. Accordingly, target customers are people who have a need to use products and services and they have the ability to pay you. In case there is no product, it requires businesses to research a broader group of customers.
2. Classification of target customers
There are two types of target customers:
- The group has used your products and services.
- The other group has never used any of your products or services.
3. Identify potential customers
The target customers have never used any of your products or services, they are confused in choosing a supplier as potential customers.
For the group of potential customers, we must classify them carefully based on factors such as geographical location, age, behavior, … to conduct better customer care.
How to identify potential customers?
To identify potential customers, we can use 3 methods such as:
1. Use Google analytics to analyze data on the website
Currently, Google analytics is a popular and effective tool used to analyze website traffic . Accordingly, we can analyze based on gender, age, geographical location, etc. Thereby, helping to find the number of potential customers who are interested in your products and services.
2. Run ads
To identify potential customers, businesses need to run ads across multiple social media platforms and across ages. This is the most effective way to identify potential customers because the group that interacts with your ad the most is the audience you’re looking for.
3. Competitor Analysis
You should know that potential customers of rival companies will also be potential customers of our business. Since they do business ahead, get customers and revenue, this method is highly effective. Besides, you can apply the calling method to take customer surveys, collect by survey forms, etc.
How to effectively manage leads?
There are many effective ways to manage leads, including:
- Must capture all customer information effectively.
- It is essential to monitor the behavior of potential customers.
- Conduct quality assessments of potential customers.
- Maintain and create good relationships with optimal customers.
- In particular, optimize marketing campaigns in potential customer analysis.
Lead management means information management of customers and sales management. Note, businesses should use CRM customer management software to manage customer information effectively. From there, businesses will perform customer care easily, according to the system.
Hopefully the above article has brought you useful information and knowledge, helping you understand what potential customers are? Wishing you success in the process of identifying potential customers, this will be an important stepping stone to bring efficiency and high revenue to your business in the future.