If your small business is struggling along, just about making ends meet chances are your marketing is flawed. Marketing is the single most important aspect of running a business, because marketing is how you make money. Pivotal to the success of your marketing is finding your tribe.
So if you’re struggling or not performing the way you want to, it’s highly likely you don’t know who your your tribe really is. Gaining this insight will transform your business. Honestly. It’s like magic.
Without finding your tribe you’ll be flailing around in the dark. Yes, you’re doing your best. You’re telling everyone you know, posting on social media, boosting ads, sending the odd email, writing the occasional blog. Some of this is working for you but most is not. Until you know who your tribe is, most of your efforts will come to nothing.
What is a tribe? These are a group of people sometimes called your target audience, your avatar or your ideal customer. In his book Tribes, Seth Godin describes a tribe as “a group of people connected to one another, connected to a leader, and connected to an idea”. Your tribe are the people who have already bought your products or services or are most likely to benefit from them.
Your small business isn’t for everyone, you know that. It should be a specific section of the market. And knowing who they are will fundamentally change your marketing and improve your business. Here’s 6 reasons why finding your tribe will revolutionise your business.
1. You’ll stop wasting your budget
Did you know that it costs 5-7 times more to gain a new customer than to keep a current one? Yes, that’s right, chasing everyone is expensive. And exhausting. ‘Getting your name out there’ is a pointless waste of money. The idea that if you tell enough random people about your business some of them will become customers is, frankly, ridiculous..
The problem with chasing everyone is that most people don’t give a shit! Seriously, they don’t care. Which means it’s quite hard to figure out who’s interested in your business and who isn’t. And because people hate letting others down you end up chasing leads who have no real intention of buying. So that ‘promising lead’ just drifts away, leaving you to start all over again.
By finding your tribe you’ll end up communicating with a small group of people who are interested in what your business does. So you won’t be wasting your money or your time.
When you limit your marketing to only those who are interested, you no longer have to worry about everyone else. If someone walks away or doesn’t buy again you know they weren’t right for you anyway. It’s liberating!
In other words, by focusing on a small group you’ll become really efficient. You’ll stop wasting cash on people who will never become customers, and you’ll save plenty of money in the process.
Do yourself a favour by finding your tribe. Get to know exactly who will benefit from your business. Make a profile of these people and focus all your efforts on them and them alone. Above all, your budget will thank you.
2. Customers will become loyal
Finding your tribe will help you get to know the group of people who will really benefit from what your business does. When you get to know this group you’ll understand their wants, needs and desires. Once you know those, you can trigger them in your marketing communications. So what you’ll find is that your message resonates with them because your product or service is what they need.
In contrast, if you have a massive, disparate group of people, there’s no way you can meet their needs. You won’t be able to identify what they are let alone meet them. And even if you did, they’d have so many! In this situation it would be completely unmanageable. You can’t solve their problems or make their lives better. It would be far too much. You’d undoubtedly run yourself ragged.
However, when you know what your tribe needs and you give them what they want they’ll become loyal to you. It’s called the Law of Reciprocity, and it really works. Understanding what your tribe needs and wants will build loyalty. And for a small business owner, loyalty is absolutely invaluable.
3. Loyal customers are worth more
Loyal customers are worth their weight in gold. To explain, let’s look at some stats:
- Loyal customers are 50% more likely to buy a new product than new customers
- Loyal customers will spend 31% more than new customers
- Most importantly: increasing customer loyalty by just 5% increases profits by up to 95%
Those are some phenomenal statistics!
One loyal customer is worth more to your small business than dozens who buy just once. One person who consumes everything you create, buys every product you have and devotes a proportion of their valuable attention to your work is far more valuable than 1,000 people who land on your page or pop into your store and do nothing. So getting and keeping the attention of that one person is priceless.
By finding your tribe you’ll revolutionise your small business. You’ll get to know them and you’ll gain a group of incredibly loyal customers.
4. You’ll be able to create better products
If you know what your tribe wants, you’ll be able to design products that they actually need. When you take time to find out how your business improves their lives, you can create merchandise that they’ll absolutely adore.
Think of your tribe as a group of your closest friends who you know really well. Imagine you’re telling them a funny story about something that happened to you. Because you know them so well you instinctively know which bits to leave out, which to exaggerate and which to really ham up so they laugh.
Well, it’s the same with customers. The more you get to know them, the better you’ll know how they’ll react when you produce something new or or modify an existing service.
You’’find yourself in a virtuous circle. Understand their needs – create/modify a product to meet those needs – their life improves – capture their feedback
Seeing your business through the eyes of your tribe is a revolution. Gaining a new perspective is incredibly valuable. Your customers can do all this for you. By finding your tribe you’ll create better products and services.
5. You can premium price your products
Understanding your tribe allows you to really tailor your products and services to their exact needs and create products which appeal them.
However, even within a close knit tribe, there will be some people who love your work so much that they’ll be willing to pay a premium.
You’ve probably heard of the Pareto Principle – 80% of your business comes from 20% of your customers. That’s absolutely true. But did you know you can apply the rule to the rule itself. So, 80% of 80 is 64, and 20% of 20 is 4. Therefore, 64% of your business comes from 4% of your customers. Applied again, 50% of your business comes from just 1%.
This means, that 1% of your tribe will be so invested in your business that they’ll buy special products or services created exclusively for them. And they’ll pay a premium.
You can tailor your products and services accordingly. So, most people get the standard version. You can develop a special product or service which will appeal to the 4% and a premium one for the 1%.
You can only do this by finding your tribe. Knowing who these people are and what they want is essential and it will transform your business.
6. Your customer base will grow
This may seem counter intuitive. But, by targeting your marketing to a smaller group, your customer base will grow. Here’s how it works.
As we’ve already established, with a smaller group, a tribe, you can get to know them really well, and in doing so, fulfil their needs. As you build your reputation, your tribe will talk about you. They’ll wax lyrical about how great you are. And that will influence other people. Tribes hang out in, well, tribes. So, chances are if one person thinks you’re awesome and introduces you to their friend, the friend will think you’re awesome too. This is how some small businesses can see massive growth.
Recommendations from friends are some of the most powerful influencing factors for improving a business. Who among us doesn’t love a recommendation from a friend, be it a book, restaurant or funny TikTok account.
Finding your tribe can revolutionise your business because people will endorse you to their friends, family and work colleagues.
In conclusion, if you only do one thing new for your business this year, do this. Find your tribe. Once you know them you can tailor all your marketing to them. It may take some time, but once it happens it will transform your business, like magic. Ta dah!