Let's evaluate your target market

Is your target market the right fit for your business?

Now that you have created the first part of your value map let's look at whether or not your solutions align well enough with your customer's needs. Do you see gaps where you can't meet their needs or where your best offerings are not a real need of the customer?

Sometimes when you start drawing a value map, you begin to see misalignment between your business and your target customers. If your core offerings do not meet a compelling need for your customer, then you need to find a better target market. That might mean getting more niche inside of your current market, or it could mean exploring parallel markets.

If you are not convinced you have the right customer profile and target market, then now is a great time to stop and test out some new target customer types.

Start by creating another customer profile for your new customer demographic. Then fill out another version of the Value Map Part 2. You can reuse the business solutions and value-adds but start from scratch on the customer needs and value-adds.

Repeat this process until you see a strong connection between what your customer wants and what you offer. This includes your value adds because your core offering might be a great fit for lots of customer types, but your value adds might only be a fit for a smaller niche customer base. Those value-adds can be important differentiators depending on your industry and market.

For example, let's say you sell entertainment systems and one of your value adds is that you have a professional cleaning company clean up after each install. In that case, you should probably focus more on homeowners than builders. Builders usually have their own cleaning crews come in before a house is handed over to the new owners, so it's not important that you leave the place spotless. Homeowners, on the other hand, would really appreciate your commitment to cleanliness. It won't be the only reason they hire you, but it could be the deciding factor when choosing between you and a competitor.

Up next

Course content

Uncertainty
Uncertainty
Customer Profiles
Customer Profiles
What do your customers want?
What do your customers want?
What does your business offer?
What does your business offer?
Let's evaluate your target market
Let's evaluate your target market
Needs, solutions and the value stick.
Needs, solutions and the value stick.
Communicate Value
Communicate Value
Deliver Value
Deliver Value
Capture Value
Capture Value
Value Proposition Statement
Value Proposition Statement

Let's evaluate your target market

Is your target market the right fit for your business?

Now that you have created the first part of your value map let's look at whether or not your solutions align well enough with your customer's needs. Do you see gaps where you can't meet their needs or where your best offerings are not a real need of the customer?

Sometimes when you start drawing a value map, you begin to see misalignment between your business and your target customers. If your core offerings do not meet a compelling need for your customer, then you need to find a better target market. That might mean getting more niche inside of your current market, or it could mean exploring parallel markets.

If you are not convinced you have the right customer profile and target market, then now is a great time to stop and test out some new target customer types.

Start by creating another customer profile for your new customer demographic. Then fill out another version of the Value Map Part 2. You can reuse the business solutions and value-adds but start from scratch on the customer needs and value-adds.

Repeat this process until you see a strong connection between what your customer wants and what you offer. This includes your value adds because your core offering might be a great fit for lots of customer types, but your value adds might only be a fit for a smaller niche customer base. Those value-adds can be important differentiators depending on your industry and market.

For example, let's say you sell entertainment systems and one of your value adds is that you have a professional cleaning company clean up after each install. In that case, you should probably focus more on homeowners than builders. Builders usually have their own cleaning crews come in before a house is handed over to the new owners, so it's not important that you leave the place spotless. Homeowners, on the other hand, would really appreciate your commitment to cleanliness. It won't be the only reason they hire you, but it could be the deciding factor when choosing between you and a competitor.

Up next

Course content

Uncertainty
Uncertainty
Customer Profiles
Customer Profiles
What do your customers want?
What do your customers want?
What does your business offer?
What does your business offer?
Let's evaluate your target market
Let's evaluate your target market
Needs, solutions and the value stick.
Needs, solutions and the value stick.
Communicate Value
Communicate Value
Deliver Value
Deliver Value
Capture Value
Capture Value
Value Proposition Statement
Value Proposition Statement