I work with the heads of sales at technology companies: carriers, vendors, MSPs and VARs. As part of my discovery I often ask, “Who is your target customer?” Before I even ask my question, I know their response, “SMBs [or enterprise].”
The conversation follows:
Me: So hair salons?
Them: No, not hair salons.
Me: So dry cleaners?
Them: No, not dry cleaners.
Me: So who then?
Them: Well SMBs with 50 or more employees.
Me: So, manufacturing environments with 40 people in the plant and 10 people in staff?
Them: Well no, 50 or more employees that are on staff.
So why does this matter so much?
You base your headcount and forecasts against your targets, but if your targets are inaccurate you inflate your headcount and your forecasts. The downstream impact includes missed forecasts and eventually layoffs.
You set up your new hires to fail. Teaching them to go after the wrong target – delaying revenue and creating new hire and management frustration.
Your marketing team creates costly digital marketing campaigns aimed at the wrong buyers.
Clearly understanding who your buyers are and communicating that throughout your organization is the first step to sales success. Proper targets are the foundation on which headcount, quotas, training and marketing programs succeed. And if you have poor definitions - a poor foundation - on which you execute, sales will fail - your business will fail.
So I implore you, sit down and clearly – accurately – honestly define your targets.Everyone is not your customer. Focus on the companies – the people – who will actually buy from you and you will be one step closer to generating greater revenue.