business owner giving presentation to customers

Should I Diversify My Customer Base?

Deciding whether to diversify your customer base is a difficult decision. If you don’t diversify, you run the risk of losing money if your target market loses interest in what you have to offer. If you try to attract too broad of a market, however, you might lose out on sales because you’re trying to be all things for all people.

Diversifying is a balancing act. You still want to understand your target market and make sure you’re offering what they want or need, but you also want to cast a slightly larger net to try to attract people outside your ideal customer base.

When you work to attract a more diverse group of customers, you can increase your market share because you’re widening what your market looks like. It gives you the chance to find new opportunities that wouldn’t be available if you focused only on your ideal customer. It can also help your small business become more stable because you’ll have options available if your target market loses interest or if the market changes.

5 tips for attracting diverse customers

1. Hire diverse employees

Your employees represent your brand when they’re dealing with customers. If your team represents the diverse group of people you want to sell to, then your potential customers will feel more comfortable approaching your staff. Consumers don’t want to think they’re options are limited because of their age, race, or gender; a great mix of employees will show them that they are welcome and accepted at your store.

With a diverse team in place, you’ll also have a great mix of voices, opinions, and ideas that can help you gain insight into how your customers think and act. Learn more about how a diverse workforce can help your small business.

2. Analyze your competition

Look at your competitors and determine if there are any gaps in whom they’re marketing to. If they are missing a key group of consumers, take advantage of that and start brainstorming how you can attract them.

3. Embrace diversity in your core values

To truly attract a diverse customer base, embrace diversity and inclusion in everything your small business does. By making diversity one of your core values, you can attract employees and customers who value diversity.

4. Ask for referrals and testimonials

If you want to attract a different group of consumers, you’ll need to market to people that you wouldn’t normal reach. A great way to do that is through referrals and testimonials. Your customers can share their experiences with their friends, families, and social networks, so you’ll have access to a whole new group of shoppers.

5. Explore new paths

Another way to attract new customers is to look for new ways to advertise. For example, try advertising on a social media network that you’re not currently on. Maybe you’re not on it because your current target market doesn’t use it, but a broader customer base does use it.