Stop Wasting Your VALUABLE Resources!
If you are marketing completely indiscriminately, with not regard to your target market, their hotbuttons or their demographic, then you are wasting your time and your money!
So, in today’s post, you’re going to learn how to find and define a target market of potential customers so you aren’t wasting those precious resources on blitz marketing or what is also known as “Spray and Pray” marketing.
So, the two questions you have to ask yourself are:
- What do people REALLY want to buy from me?
and perhaps even more importantly:
- What related products are they already buying?
Once you work this out you will then know who is more likely or predisposed to buy your products/services. Then, you find other businesses with the same customer base who you can customer share with. You can come up with an incentive and other great arrangements to encourage both of your customer bases to shop at both of your stores. Anyone who has attended any of my webinars knows that I go on and on about these strategic alliances and joint venture partnerships.
The basic concept is this:
1) You want to find existing businesses who have the customer profile that you are looking for you to market your own product or service to.
2) Strike up a relationship with those business owners to work out an incentive (preferably exclusive, by the way) for customers to purchase from both businesses.
As a result, you instantly have an audience to market to and at the same time your new strategic partner has generated added value to their own current base by offering your product or service.
But how do you work out what offer to make, to ensure that you always get a positive ROI from this exercise? Well, there is a great formula from Jay Abraham that you can follow with great success.
LV = (P x F) x N – MC
- LV is the life time value of a customer
- P is the average profit margin from each sale
- F is the number of times a customer buys each year
- N is the number of years customers stay with you
- MC is the marketing cost per customer (total costs/number of customers)
So, once you know how much you need to spend to attract a new customer, you will know how much of an incentive you can offer to a business to help attract new customers.
So, here’s your step-by-step process:
- Find companies who already have the customer base you are looking for.
- Negotiate a specific incentive for them to share that customer base with you.
- Focus your marketing resources to this group of prequalified and predisposed customers.
If you need help working through this process, feel free to get in touch and you can also check out our FREE test drive for the most comprehensive system of marketing tools and resources.