A store is a place you go to buy stuff, usually out of convenience or habit. In contrast, brands inspire irrational loyalty and yes, even love. How does a company build itself into a brand that people can fall deeply, madly in love with?
The old model says segmentation is the key to business success. This involves strategically dividing your potential customers into groups based on
who they are and why/how they’re buying. Segmentation is a fine marketing tactic, but it won’t help build a brand people can wholeheartedly rally behind. In fact, segmentation can even
work against a brand by diluting the brand identity. In order to build the type of brand that customers can fall in love with, you must first create a detailed picture of your ideal "unicorn"
Let me start with a real-world example of one brand that I worked with. This company is one of the world’s largest retailers of hookahs and hookah supplies. When I asked them who they thought their ideal customer was, they described an older Middle-Eastern man. In fact, their ideal customer – the person most likely to bring in the most amount of revenue for this company over time – was a young guy between the ages of 18-28, who wants to bring people together around the hookah. He is a discerning, curious, fun-loving hookah enthusiast who knows that the most memorable and fun hookah experiences start with the right equipment, accessories, and shisha tobacco. He wants to be the life of the hookah party. You can see why he’s the ideal customer.
This example clearly demonstrates how to define this ideal customer. First, start by asking yourself these three questions:
1. Who is the customer who will be
worth the most over the long haul?
2. Who will be the customer who is the most profitable and delightful to serve?
3. Who will not only keep buying from you again and again but will recommend you to others?
Then, create an in-depth profile of this customer – the person who is most highly predictive of your brand’s success. Imagine the ideal customer in
excruciating detail: What kind of car do they drive? What clothing do they wear? What’s their perfume? Every minute detail must be worked out in your mind so this person becomes as real as
possible. To help you fill in the details, consider doing the opposite of segmentation. Think about what unites your customers, and create a singular brand that is for a singular customer
What are the benefits of identifying the ideal “unicorn” customer?
Is Segmentation Dead?
Segment marketing has its place, and identifying the ideal customer archetype shouldn’t replace segmentation practices. But if your boss has asked you to go out and segment the market, you are probably putting the cart before the horse. First you have to identify the ideal customer, and then you can think about segmentation. Remember, you’re building a brand for ONE and segmenting the market to get your actual product or service in front of many.
If you want to make yourself more attractive to the man or woman of your dreams, you don’t start off by researching all the people in the world who might find you attractive. You focus in on that one person – your ideal mate – and learn everything you can about them – their favorite flowers, what TV shows they like, what they do on Friday nights. In order to build a brand, you have to approach your customers in a similar way. Learn more about the ideal customer and let those insights inform the brand identity. Segmentation can help in marketing, but it’s not going to help build a brand that customers can fall in love with. Finding your "unicorn" customer will.