The score Analysis section of the action plan assesses the customer segments that the company serves. In this document, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) shows how its products and services to meet these needs.
The first stage of analysis client is to define exactly which customers the company is serving. This requires specificity. It is not enough to say the company targeting small businesses, for example, because there are several million of these types of customers. On the contrary, the plan must identify precisely the customers if they are used, such as small enterprises with 10 to 50 employees based in large metropolitan cities on the West Coast.
Once the plan has clearly identified and defined the target customers, it is necessary to explain the demographic characteristics of these customers. Questions that need answering include: 1) how many potential customers fit the definition? is this customer base growing or decreasing? 2) what is the average income / income of these customers? and 3) where are these clients on a geographical basis?
After explaining customer demographics, the plan must specify the needs of these customers. Delivering the needs of customers could take the form of past actions (X% have purchased a similar product in the past), future projections (when interviewed, X% said they would buy products / services Y) and / or implications (because X% use a product / service which our product / service enhances / replaces, then X% need our product / service).
The business plan must also detail the drivers of customer decision-making. Sample questions to answer: 1) Do customers find price more important than the quality of the product or service? and 2) are customers looking for the highest level of reliability, or will they have their own support and seek a fair level of service?
There is one last critical stage of the Customer Analysis – showing a real understanding of the decision-making process. Examples of questions to be answered here include: 1) the customer consult others in their organization or family before making a decision?, 2) the customer seek multiple bids? and 3) the product / service require significant operational changes (for example, the client must invest time to learn new technologies? product / service cause other members within the organization to lose their jobs? etc. .)
It is essential to truly understand customers to develop a successful business and marketing strategy. As such, investors require sophisticated profiles of the target customers. By devoting time to research and analyze your target customers, you develop both enhance your business strategy and funding success.