From the conception stage of any product, idea, or solution, one thing that every expert agrees is that the market needs to be defined. There is someone you think needs your product, or wants it enough to spend money on it. It is the only reason you will have a business anyway, so it has to be defined before you even get started.
Now, to the question of who the customer is.
Picture this. A young intending entrepreneur comes up with the idea of a travel booking app where people can book their bus, or tricycle ride at least 30 minutes ahead and has it pick them at their doorstep. Now, he is pitching to an investor and has to answer the question “Who is your customer?”
“Everyone will need this product,” he says. “The school child, the worker, the self-employed, the business owner even takes a public transport sometimes. Everyone who needs to move from one place to the other is our potential customer. On a daily basis, everybody moves from one place to the other, so everyone is our customer”
How realistic does the reply sound? Not very.
You cannot enter a market with your solution by targeting anybody and everybody that comes your way. Even if you are selling water, it is not everyone that will buy what you sell. Some might prefer sticking to the brands they know. Some might want to try your product out if there is a unique proposition your product brings to the table.
It is very dangerous to go into the market targeting everybody, but this is a common mistake among inexperienced people who want to move into the entrepreneurship space. Oftentimes, the person is so in love with his idea and sees it as very valuable and he thinks also that every other person will find it valuable. While this feeling might drive passion, enthusiasm, and effort, it is not enough to get you into the market with your product or solution.
If you listen to some founders talk about their product, you could hear something like “our ideal customer is the tech-savvy millennial who is looking for a faster way to get his research assignments and school work done” or “this insurance product or pension product is targeted at a middle-aged man and woman in this region, who are looking for valid plans and financial security for their retirement years”.
Now, these are more specific and it helps the product development team in deciding and building the features of the product. It helps the sales and marketing team in deciding on their strategy. It is a simple task that makes all the difference. You can guess that a product designed for the middle-aged will definitely have a different feel to it compared to one designed for the GenZ or the Millenials.
As a company, you could have a general vision, but products that will be launched into the market have to be targeted at a specific kind of customer. For instance, after defining your company vision, you can research, develop and launch out specific products for the identified market segments you wish to serve.
