Matching core competencies with ideal customers: The recipe for business success

How do you define success in business?

“Revenue” will factor into the definition somewhere. But a larger question looms — namely, how can a business become the best version of itself?

Successful business owners know what their businesses do best and who exactly their ideal customers are. When a business’ core competency (what it excels at doing) is aligned with its ideal customers, the business creates real, scalable, sustainable value.

Achieving this objective — having core competencies align with “ideal” customers — may sound like an “easier said than done” proposition. After all, what business hasn’t at some point taken on assignments that don’t quite fit with what it does because it needs the work? Or worked with a difficult, even unreasonable customer — someone who doesn’t share the business’ values or missions?

Thriving businesses become thriving businesses because the company stays true to its values. In my view, successful companies are the ones that seek to positively impact the lives of everyday people, and who work with purpose-led leaders. That happens when the business owner seeks customers who care about more than price; they also care about why and how things are done.

Core competencies

Getting these two basic principles to align involves, first, some analysis about core competency.

A valuable exercise is to involve your team and trusted advisers in a discussion of what, exactly, your core competencies are. What does your business do exceptionally well? Do you have exceptional product knowledge? The ability to provide unique and custom solutions to each customer’s need? Does your business offer ongoing support for products? Does your service department have 24-7 quick response? Do you offer “live” phone answering service as opposed to seemingly endless voicemail queues? Do you put people ahead of products? Understanding what you do better than anyone else helps zero in on your value proposition.

Ideal customer: Who are you built to serve?

After identifying your core competencies, then take a critical look at your customer base. Do you sometimes deal with less than ideal customers? An ideal customer or client is more than just someone with a budget. It is someone with a purpose. Your team and trusted advisers can be helpful in this determination. By way of example, we design and manufacture equipment used in warehouses that reduces workplace injuries and increases operational efficiencies. For us, ideal customers are: Leaders who care about long-term impact as opposed to short-term cost; operational leaders who prioritize culture, safety and well-being; and companies that value people as much as performance.

Your “ideal” customer’s characteristics may be different from ours. But finding them and then tailoring your sales and marketing outreach to them will vastly improve your business.

When a business partners with its ideal customers, the relationship becomes more than merely transactional. It becomes transformational.

When you pair core competencies with ideal customers, you’ll experience faster, clearer communication, a deeper trust and long-term loyalty, a shared sense of purpose, and work that is energizing and not exhausting.

After your discussions with your team and advisers, you may get a better sense of “are we there yet” by asking a few simple questions of yourself and your business.

• Are we solving a high-value, people-centered problem?

• Does this customer appreciate how we work, not just what we do?

• Do we share similar values around safety, service, and impact?

• Could we do this again — and would we want to?

If your answers to these questions are yes, you’ve found your focus. This is where and how you should build your business, and not chase everything else.

Too many businesses stretch themselves chasing misaligned opportunities. The smarter play is to align with your strengths, your values, and the people who benefit most from both.

Because when you operate from your core — for customers who value it — you build not just a business, but a legacy.

• John Costello is CEO of Cherry’s Industrial Equipment, a Roselle company that designs and builds equipment that improves worker safety and company efficiency.