8 Ways to Position Your Brand to Target the Right Customers
8 Ways to Position Your Brand to Target the Right Customers
Here’s how to avoid falling into the trap of a startup that tries to become too many things to too many people.
Attracting the right customers is the key to success in business, whether you have a startup or you’ve been in business for years.
In my role as an adviser to entrepreneurs, I often see businesses make the mistake of trying to be too many things for too many people. For example, Xerox tried to broaden the use of “xerox” as the standard term for “photocopying” to extend the company’s existing customer segment into office automation and all kinds of computing. As Xerox watched its market share dwindle instead, it realized too late that these segments were already defined, and the company needed a new focused brand to attract customers from other segments.
These days, branding is less about products or solutions, and more about the overall customer experience and expectations. If the shopping process, delivery, and support level does not match customer expectations, no innovative product features will compensate. And the result will be less visibility and slower growth, with fewer delighted customers and little word-of-mouth marketing.
In my experience, it’s best to start by selecting your desired customer segment first and match it with a branding model that best fits those customers. After that, you’re ready to design your product, marketing, shopping environment, delivery model, and support around that model.
Don’t know which branding model is for you? Here are eight common models for you to start considering, ideally before you design your product or launch your service.
1. Premium or exclusive solution
The audience for this business model is limited, so make sure you can deliver to their expectations. Existing brands such as Tesla, Virgin Atlantic, Rolex, and Harvard University seek to appeal to this elite customer segment, implying prestige, exclusivity, and high customer personalization.
2. Lowest-cost solution with minimal customization
At the other end of the spectrum, many startups and big companies, including Amazon and Walmart, expand their customer segment by being the most cost efficient, with low overhead and little customization. Don’t attempt this model without high automation and a big investment up front.
