Customer Persona - Government Customers: Why you should get to know this customer segment!

Customer Persona: Selling to Government

Should Small Businesses Bother Building Buyer Personas?

It’s pretty easy to see why buyer personas are important for large businesses - but if you’re a very small business is this a waste of time?

It isn’t a waste of time to identify to types of customers you want to acquire. It helps to clearly identify your target customers. Remember, the analogy I used in a previous Blog about the African lioness hunting her prey and how she clearly identifies one target and chases down this prey?

By clearly identifying your target customer you can hone your website and blog content, so it target specific niche market. This will help you write better content for your website and choose blog topics that will resonate with your target audience.  It will also help with your marketing efforts. 

Why You Should Include Government in Your Customer Segment?

Market Size

The Western Australian Government spends $AUD27B annually buying goods and services from  businesses like yours; while the Australian Government spends $AUD69.8B annually buying from Australian businesses (approx. 84,000 contracts).  As you can see the potential market is enormous!

NB:  Due to the Australian Free Trade Agreement, our governments also buy from overseas suppliers.

I have no idea how much local governments spend on procurement each year.  While this information is available for each local government authority, I could not find a consolidated list for all of Australia. 

Bankable

Government as a customer might be a bit late paying, however, their contract is bankable!

To reduce your risks it is prudent to include government in your customer segments. This allows  allows you to grow your customer base and not just rely on one or two market segments only.

If for example, you are an IT server provider, most government services contracts range from 1 year with option to renew for a further 3 years or more.  This allows you to grow your business and the opportunity to take on Apprentices and Trainees - the next generation of professionals in your industry. 

In Australia, all three tiers of governments try to help start-up and small businesses by providing opportunities for them to bid on small projects. This helps the small business to experience working on a government contract. Also, it gives government the opportunity to assess your work and evaluate your performance delivering their project.  This is to help you get a few rungs on the board!

In 2020-21 the Australian Government awarded 46,204 contracts that were below the $80,000 value.  In total this amounted to $AUD1.5B.

So, you want to sell to government?

How do you determine if government is interested in what you are offering?  It is a bit hard to research customer demographics when your potential customer is government? But, who are the people that make the buying decisions within the government agency? What would  motivate these potential customers to buy from you? What are their buying habits? Why would they use your services or products instead of someone else?

If you don’t understand your government buyer, then you won’t be able to provide them with what they want and need.  Here's a guide to gather deep insights into government customers.

How to research your target customer which happens to be a government department?

1.  Google - yes, good old Google to the rescue.  Have a look at the government agency's annual reports, strategic plans, organisation charts, profiles of senior staff and media releases

2. Annual Reports - As boring as it sounds, Annual Report are gold!  Have a quick read of the front section which will mention the Government Agency's future direction and planned projects for the next financial year.  You are welcome!

3. Budget Papers - haha , another boring government document but if you want to work for government especially on large contracts, this is a must read! Budget Papers will mention planned projects and  approx. values earmarked for them

4. Social Media - Most government departments will have a Facebook page where you can find current information 

• Twitter - Does the Government agency you want to work with have a Twitter account? Consider following them to find out the information they post. Most Australian and Western Australian Government Ministers have a Twitter account, so follow them to find out what they are up to

5. LinkedIn - Follow the Government Department's business page on LinkedIn; do a search on who works there. You might be pleasantly surprised to find someone you know who works there

6. Industry Associations and Chambers of Commerce and Industry - Both of these associations offer regular networking opportunities and newsletters. Join to build relationships with your peers and industry leaders

7. Industry Publications - regularly feature government agencies who buy from their members. So, have a look at your industry publications

8. Your Social Network - Is there anyone you know who could help? Ask them to introduce you to key contacts within the government agency who is your ideal customer

9. Word of Mouth - This one is very powerful. If you have satisfied clients or happy customers, ask them why they were happy/satisfied. They may even let you into the inner circle of their network to find new clients within governments

10. Phone - find out who the procurement people are and ask to meet with them.  

Do your research before meeting with the Government Procurement representatives. Prepare a list of questions you want answered before your meeting. During your meeting use active listening skills and ask clarifying questions if you don’t understand what is being said. This can help you get a better understanding of what the government buyer is telling you. 

Take time to nurture and build trust with this target audience. Your government buyer isn't going to buy from you at your first meeting. This is a long term game plan.

All this information will help you build your customer persona for the government agency you want to acquire as a new customer. It is then up to you to decide whether you want to work with them.  

Here are some useful links about creating Buyer Personas and Government Agency Lists

“What Does a Great Buyer Persona Look Like?”  - this Hubspot Blog is quite helpful.

Western Australian Government Agencies  - List of State Government Agencies in Western Australia

Western Australian Local Government Directory

Australian Government Departments and Agencies

Good luck and let me know how you go.  Happy prospecting.