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> SALES PITCH
‘It’s important to maintain a delicate balance between
current requirements and future goals. Companies
need to stay in touch with their “sweet spot” and keep
marketing into that area’
Paul O’Dea
Best Buy. Focusing on the 18–32-year-old male gadget freak (and – beware of companies with ‘champagne tastes and beer
there are plenty of them out there!), Best Buy offers all the latest in budgets’ as they are definitely not ‘sweet spot’ quality! Having
communication, gaming, big screen and high-end audio technol- a clear understanding of customers’ purchasing policies and
ogy. It encourages these ‘sweet spot’ customers to come in and structures is also vital
try out the latest products in a no-pressure, hassle-free environ- ■ Find out who the ‘Key Decision-Maker’ is, their role in the
ment – an approach that has helped to increase repeat sales, build
organisation and their relationship with your product/service.
customer loyalty and boost profits.
For instance, will they be using it themselves? If so, adapt your
Establishing a process for identifying ‘sweet spot’ customers and
sales pitch with this mind
then tailoring service offerings accordingly is a prerequisite for all
■ Finally, ‘Key Customer Need’ examines what drives your poten-
businesses, according to O’Dea. “It’s absolutely vital to get buy-in
tial customers. Are they solely focused on cost reduction, or is
from the top. The entire process must be driven from CEO level on
improving customer service their key consideration? Whatever
down if it is to be successful,” he says. “The whole company must
they may be, how well their needs match your service offering
then be aligned behind the strategy – that includes sales, marketing,
to begin with will actually go a long way towards determining
finance and production – with clearly defined structures and goals.”
how easy, and profitable, they will be to do business with in
the long term.
Sweet spot ingredients
O’Dea outlines six main considerations, or profilers, to serve as a Eyes on the prize
roadmap for identifying potential ‘sweet spot’ customers:
Given the current economic climate where maintaining adequate
■ ‘Industry Segment’ assesses which industry segments are best
cash flow is vital, many companies are tempted to take customers
suited to your business, the size of the industry in question, the
wherever they can find them. While that is understandable, O’Dea
number of potential customers out there, geographical loca-
says, it is important not to expend too much time and energy on
tion, relevant legislative and regulatory requirements, and the
off-strategy customers and lose sight of the ‘sweet spot’ as a key
current state of the competition
part of the long-term strategy.
■ ‘Tendency to Adopt’ looks at the suitability of your product
“It’s important to maintain a delicate balance between current
for a particular market, where that market is in its develop- requirements and future goals. Companies need to stay in touch
mental lifecycle and, therefore, how likely potential cus- with their ‘sweet spot’ and keep marketing into that area,” he
tomers operating in it are going to take a chance on a new stresses. “There are a number of low-cost but highly effective
product or service ways of doing this, including e-mail marketing, use of social
■ ‘Business Discipline’ assesses how potential customers posi- media, newsletters and even taking a controversial stance on
tion themselves and how your company might fit in with their
industry issues as a means of maintaining profile. Regardless of
modus operandi. Are they product leaders who are constantly
current day-to-day operational requirements, a certain amount
breaking new ground and, therefore, are more likely to be early
of time and resources should always be allocated to realising
adopters? Or are they customer-intimate, working closely with
long-term goals.”
a select customer group, or do they operate in a margin-tight,
With the market constantly evolving, however, winning
lean and mean environment where operational excellence is
new ‘sweet spot’ customers is just the beginning of the
key? What can you offer these types of organisations and is it
process. “Companies need to protect their position by constantly re-
really worth it to you to do business with them?
evaluating the markets they are serving if they are to stay ahead of
the competition,” O’Dea says. “They need to keep a close watch on
■ ‘Budget’ looks at how much potential customers are prepared
to pay for your services and why. Assess what your costs are,
their customer portfolios at all times to assess who their best
what competitors are charging and set your prices accordingly
customers are at any given time, how their requirements are chang-
ing and how best they can meet these changes for the future.”
48 Marketing Age Volume 4 Issue 1 2010
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