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Category Archives: Customer segmentation

The Biggest Pricing Mistake in Small Business

I think the biggest lost profits for small business happen when they fail to offer different products to different customer segments. In other words the 'product-market fit' is poor. Let me explain: All your customers don’t buy for the same reasons. If you group them all together, you end up thinking the main issue is price. Every time I ask a... Continue reading

Determining the Market for Your Business Versus Customer Development

When you start a new business, it is suggested sometimes to determine your 'market'. There is often confusion on the definition of a 'market'. I think the wrong area to focus on is the macro – economic approach where you determine, for example, that China is the biggest and best 'market' for your new business. I think the better question is: ... Continue reading

Understanding Your Customer Segments

A business growth strategy that is focused on a particular customer segment is the opposite of the 'one size fits all' strategy. One size fits all is the same as trying to be 'all things to all customers'. When we want to think strategically about the needs and wants of a particular segment, it is important to know how to define each segment. ... Continue reading

Establishing a Competitive Pricing Strategy

Are you pricing to the 10% of customers that are never happy? When you look at your customer base in your business, they will typically range from your 'raving fans' to the 'will never be happy' group. When you look at your pricing, you might think you have to offer one price to all your customers. If your pricing strategy is a 'one size fi... Continue reading

Consider Convergence of Products and Services for Business Growth

In the old days, your business was either a “product” based business or a “service” based business. The traditional furniture store sells a product: furniture. The traditional law firm sells a service: the lawyer’s time. To be a successful furniture store today, however, the service provided may be as important to the customer as th... Continue reading