BRUCE MILLAR - Owner, Lake O’Hara Lodge
Owning and operating a 90-year-old ski lodge, I’ve seen many travel trends come and go. It’s easy to get trapped in the idea that you always have to be doing something bigger and better in order to compete. From incorporating a spa to providing Egyptian cotton sheets, it can be difficult to not buy into the hype due to fear of missing out on big business. I’ve seen many boutique resorts and hotels struggle to keep occupancy because they were trying to cater to everyone or every trend instead of just sticking to what they’re good at.
The key to reaching your customers is to first learn who they are. Geographic and demographic segmentation is key for us, as we’re a remote lodge in the Canadian Rockies. You won’t find Wi-Fi or even cell service. In fact, the only way to reach us is to ski or hike 11 kilometres in. For many, that’s a deal-breaker. But instead of us trying to introduce a non-stop shuttle service or adopt state-of-the-art technology, we have to remember what keeps more than 70% of our guests returning every year: a true off-the-grid lodge experience.
A great way to find your target market is to simply ask your past customers for feedback. Also, check review sites to see what else people are saying about you.
To survive in a niche industry like travel and hospitality, you have to remember that only a small percentage of people will be interested in your services. The more accurately you can focus on them and stellar customer service, the less your efforts will be wasted and the smaller the chance your resources will be spread too thin.
LUKE AULIN - CEO, RTown
Identifying your ideal customer profile is an important strategic initiative for any type of business, big or small. Yet many business owners avoid doing it. This could be primarily out of fear of losing out on a broader market, believing that narrowing their focus will only result in lower profitability. However, this has proven to be a common misconception and critical mistake.
Defining your ideal customer profile affects your product and service innovations, your pricing, billing, packaging, delivery and collection processes. It also creates clarity for your marketing strategy, particularly your online presence. To start segmenting the market, define whether your company operates on a business-to-business or a business-to-consumer model. Next, consider things like your customer’s income, age, gender, associations, interests and desires. And most importantly, get your team involved, as typically your retail or sales team can offer major insights into your customer base.
It’s also important to start measuring key metrics as soon as possible. By implementing a customer relationship management system and/or loyalty program, you can capture customer data. There is also plenty of affordable software that can track your online reputation and analyze your social media following. If you are already operating, look to your data for clues.
Knowing your ideal customer profile and aligning your staff around serving them will help you predict their changing needs, increase your team’s standard of customer service and, ultimately, unlock hidden profits in your business.
COLIN MANSELL - Founder, Drive Digital
As anyone who runs a business knows, it’s important to put the needs of your customers first. However, with the day-to-day busy-ness of business, we don’t often get the time to really think about who we are targeting and identifying what it is that they really want. It’s a case of the urgent stuff getting ahead of the important stuff, and as business owners, it’s fair to say that we are all guilty of that.
To run a high-growth company, you have to remain focused on the important questions and ensure you are reviewing this on a regular basis. If we simply express the function of business as selling X number of units for Y price, the key questions really are: how many Xs are there, what exactly do they want and are they willing to pay Y price? And then, of course, can we deliver that while making a sustainable profit?
Once you have a handle on the various possible segments, and relevant products and services, the next step is to decide which segment to go after. To do so, follow the 80/20 rule: the best 20% of your customers can deliver 80% of your profits, and, at the same time, the worst 20% can deliver 80% of your unnecessary workload. So the trick is to focus on the top 20%, and clearly identify them through something that they all have in common.
It’s also critical to keep nimble, so try to revisit your strategy every 90 days. In today’s market, customers’ needs shift rapidly, and you need to keep your finger on the pulse to stay ahead of your competition. Wherever possible, you want to be making these decisions based on real data.
