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Posted by: Todd Simon

‘Sweet Spot’ Prospect Targeting

It is always amazing to me how few companies take the time to envision who would or should be on their ‘perfect’ client roster. I don’t mean the top 10 or 20 on a Forbes or Fortune list...

It is always amazing to me how few companies take the time to envision who would or should be on their ‘perfect’ client roster. I don’t mean the top 10 or 20 on a Forbes or Fortune list, but rather the prospects that could turn out to be the best possible clients in terms of profitability, ease of doing business with, relationship depth, need of education (or lack thereof) or any other metric a company could use. In other words – prospects that would resonate with your company's 'Sweet Spot'.

Your company's ‘Sweet Spot’ is exactly what it sounds like – that place where you know you are going to do a great job, have a profitable project, and wind up with a great reference from the client. The ‘Sweet Spot’ is determined by a few specific data points, and those include 1) the optimal project type for your company - this is an activity or product your company has vast experience in and produces the majority of the time with most of the project parameters having been delivered very successfully in the past. 2) the optimal project size for your company - this is determined by the amount of resources you have including the number of employees available combined with their current bandwidth. And 3) the optimal marginal return - you have to have a client that truly believes the value of the product or service you are delivering and can get beyond the price point mentality most companies purchase with.

In addition, there is a ‘Sweet Spot’ within your prospect list as well. There are also specific data points that will enable you to determine if the project is going to be a highly positive experience or not. These are 1) the educational quotient of your prospect - do they ‘get’ what you do and how to employ your services to the fullest extent or will you have to spend valuable time educating them as to who you are and what you do. 2) the need level or pain threshold they are currently in - some companies could be a perfect fit for your organization, but have no need of your services, or they aren’t experiencing any issues that would motivate them to want your product or services. And 3) their procurement process - some companies are controlled and sometimes handcuffed by their procurement policies, others are more flexible.

Getting the 3rd party testimonial – or better yet “The Referral”

More important than just the prospecting effectiveness of this kind of approach, the ability to match your company with a defined list of ideal prospects will allow you to hit your ‘sweet spot’ more frequently. If you know your company produces better work for a company within a specific size range, why not target them and specifically tell them you want them as clients? How more personal can you get when you specifically ask someone for their business because you know they fit your abilities? And in the end, aren’t we all looking for great references and ultimately personal referrals? You are never going to get great references from unsatisfactory experiences, and those usually come from projects outside the ‘sweet spot’ of most companies.

So do your homework. Research within your company and discover your own ‘Sweet Spot’, then look out over the prospect landscape and see who matches your ideal prospect criteria. The time you invest in this process will pay itself back many fold. You will introduce yourself to targeted prospects who have a better chance at becoming great clients for your company.

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Sweet Spot Needs Flexibility

Submitted by: Jack

Determining just what is the "sweet spot" for one's business, is a very interesting and productive exercise. It forces you to hone in on just who and which type of customer is ideal. If done right, a meaningful profile develops. Then, finding other companies that fit that profile becomes a market research exercise.

Size, industry, region, length in business, new initiatives, leadership stability or newness, high-profile customers-these and many other traits should go into that profile.

Look carefully at recency of business with you, frequency of purchase, total amount of business, and how long have they been a customer.

I caution flexibility, however. Times change, new trends develop, Markets get bigger and unfortunately smaller. Your sweet-spot profile should grow and change accordingly.