Identifying Your Customer
Identifying your customer seems pretty easy, right? Not necessarily! In an industry where any business could be a potential customer, you need to take a step back and plan your strategy. In the surveillance/security business the world is wide open, but where do you start?
- Franchise Companies. Franchise Companies can offer a great stream of income due to networking between franchise owners, but are hard to initially penetrate. Don’t plan on a quick return on your initial time investment; it could take months or years depending on the franchise and the specific pre-arranged agreements with the franchisor. However, the reward could be well worth it.
- Schools. Schools are large purchasers, and they will continue to need product due to growth and continued maintenance. Depending on how the school is organized, you may find that the biggest challenge is finding out who the purchaser is. We have seen situations as simple as the maintenance guy calling in from the jobsite ordering cameras and equipment. We have experienced two-month purchase order processes, where the PO had five different signers! Schools make great accounts, but be prepared to wait longer than normal for payment.
- Government/Institutional. Government and institutional buyers are similar to schools. They are larger purchasers, and may or may not want installation expertise. The purchasing process in most of these environments will require sign offs/approval by several people. Again, like schools, the challenge is to find out who the purchasing agent is. Likewise, these make great accounts, but be prepared to wait longer than normal for payment.
- Specialty/Niche Companies. Specialty and niche companies can be a great business segment. They are looking for something slightly customized, and are usually willing to pay a premium. They understand that not everyone can offer them the same level of customization, and in the big picture, our product is only a small piece of their business. Surveillance systems and cameras can go anywhere and everywhere! Such customers are PI’s, ATM installers, specialty camera manufacturers, scientists, etc. I personally find this group the most rewarding, because I have the opportunity to help another entrepreneur cultivate and grow a business!!!
- Individual Business Owners. Individual business owners will continue to be a large part of many security companies’ revenue. These customers will come from referrals, advertising, and word of mouth. Join the local chamber of commerce, describe to your circle of friends your ideal client, get involved in a local charity, or join a club/group that in which you have an interest. Personally, the bulk of my advertising budget goes toward buying breakfast and lunch for my contacts! I get more business by networking with community leaders than any advertising can buy.
With such a fragmented market, it can sometimes feel overwhelming. Where do I start? When will I see a return? The answers vary from segment to segment and from individual to individual. However, if you understand different business segments and how they make decisions, you will be better able formulate an appropriate plan.
