Selling to over-served customers: Targeting currently over-served customers

  • by

What are over-served customers

Over-served customers are those customers that are currently buying a product or service, but the features of that service greatly exceed what the customers require. Potentially the customers need some elements of the product, but there are many dimensions that are not needed.

Such over-served customers are often paying more than they would like to pay for features that they don’t need. However, because there are no other more focused options available, they accept paying a premium for unnecessary features that exceed their demands.

The opportunity of selling to over-served customers

The opportunities of selling to over-served customers come from recognizing that there may be a way of meeting their more basic needs at a faction of the cost of the options that they currently use. By potentially scrapping features, or reconfiguring the product, you may be able to devise a more limited product that meets the more basic needs of over-served customers.

Depending on the number of over-served customers, there may be a large opportunity in selling to this segment of the market. Especially if you are able to develop a new offering that is incompatible with the position of existing firms (potentially because it is so stripped down that it is incompatible with existing firms markets).

Things to keep in mind when selling to non-consumers

As with all major strategic moves, it is important to consider whether other firms will respond or not to your actions. While there may be significant opportunities of targeting currently over-served customers, if other firms are able to quickly imitate your moves, the advantage that you have may be short lived. Consider the entry and mobility barriers that may make it difficult for new firms to enter the market, or existing firms to re-position themselves.