Clients are vital to your business. That's obvious. The better quality of clients, the greater the success of your business. There are two ways of defining prospective clients or prospects: demographics and psychographics.

Demographics

Demographics is a study of statistics about people: where they live, how much they make, how they buy, what brands they like. Retailers use census information to build demographics that help them decide where to build a store. Consulting services can use demographics, too. They can learn who would use their services and, then, where to find them.

As an example, a consultant specializing in hotel operations must know more than the fact that prospects are a member of a specific trade association. The consultant must also know when hotel management needs the most help and how they typically find it. This information is available from experience, from industry studies, and from other experts in the trade.

Psychographics

Psychographics is the study of why people buy. You would think that most people buy for logical reasons. However, even in the business world, people often buy for emotional reasons and justify their decision with logical motives. Knowing why your clients buy will help you sell to them more effectively.

If you've built a solid reputation in your area as a consultant whose name means quality, you can sell that name. People want to go with a winner, so you will get some jobs just because people know you were involved. Learn what makes your clients buy and help them buy from you.

Market Research

Understanding your clients is so important that large corporations spend millions of dollars annually on market research. Although some formal research is important, a small business can usually avoid this expense. Typically, the owner or manager of a small consulting service knows the prospective clients personally. From this foundation, you can use a systemic effort to build your understanding of your clients.

Understanding buyers starts with the realization that they purchase benefits rather than services. Consumers don't select toothpaste. Instead, some will pay for a decay preventative. Some seek pleasant taste. Others want bright teeth. Or perhaps any toothpaste at a bargain price will do.

Problem Solving

Similarly, industrial purchasing agents are not really interested in drills. They want holes, they insist on quality appropriate for their purposes, reliable delivery, safe operation, and reasonable prices. Video games are fun. Cars are visible evidence of a person's wealth, lifestyle, or self-perceptions.

Remember that people don't buy consulting services. They purchase practical advice to solve specific problems. They want accurate information they can use to make more money or have more fun. They want knowledge they can use. They couldn't care less about buying consulting services! Put yourself in their shoes and determine what they want, why they buy, when they buy, and how and where they buy these benefits. Then you will understand how to reach them.