The evidence from my clients across the spectrum of industries and markets is that when you imagine you can sell to everyone, you end up selling to no one.
The more your offerings are specific and customized to buyers’ needs and priorities, the higher the likelihood those buyers will make a purchase. Thus I urge every company to focus deeply on current buyers. Current buyers will supply the vast majority of revenue growth.
Today we’ll connect two of the best positioning strategies with the process of segmentation to maximize revenue from your current buyers.
Let’s look at the different segments and see how they connect to positioning strategy.
- Best Buyers: the buyers who love what you offer to them. They want to buy more from you. The ‘more’ has to be new, different and of high value.
- Positioning Strategy: Number One.
- Enthusiastic Fans: always happy to buy from you. They typically buy something from all your product lines. They’re receptive to new offerings.
- Positioning strategy: Number One for high end, Line Extensions for all
- Regulars: Frequent buyers, from your low to middle end offerings. They have good feelings about your company and are receptive to marketing of your higher end offerings.
- Positioning Strategy: Line Extensions
- Testers: they tend to be highly price driven and will shop for discounts and deals. There is a lot of turnover of these buyers.
- Positioning strategy: I do not recommend investing much marketing in the Testers segment.
Product line extensions will be very popular with your Regulars and some of your Enthusiastic Fans. Well-known examples of extraordinarily successful product line extensions for these segments include:
Miller Lite “Tastes great, less filling.” The message is if you love Miller you’ll love Miller Lite just as much and enjoy that it’s less filling.
Toothpaste: the best sellers in 2016 were Crest Complete Whitening Plus Scope Toothpaste and Colgate Total Whitening Toothpaste. Crest and Colgate are well-known brands. They chose to focus their line extensions on the whitening aspect of toothpaste, since cavity fighting has been instilled in consumers for decades.
Ask yourself “What kind of line extension could my company create that would appeal to our Regulars and Enthusiastic Fans?”
When you choose to position a product or service as Number One you’ll appeal to your Best Buyers and high-end Enthusiastic Fans. Examples from my clients include:
The CPA who positions his firm as the Number One in Personal Financial Performance for the owners of businesses with $15-30 million in revenue. This Number One position is unique, high value and not for everyone. It’s a perfect fit for the firm’s best buyers.
The Cyber Security firm that offers Total Security packages for high value professional services companies and medical specialty practices. Total Security is expensive, it gives access to limited resources and ensures deep peace of mind to this company’s Best Buyers.