In this post, you’ll learn how to find a target market of potential clients and customers so you aren’t wasting marketing resources on blitz marketing. Therefore, the two questions you have to ask yourself are:
- What do people really want to buy from me?
- What related products are they already buying?
Once you evaluate and confirm the answers to these questions, you will know who is more predisposed to purchase your products and services. Next, find other businesses with the same customer base whom you can share customers with. Create an incentive and a plan to encourage both of your customer bases to shop at both of your businesses.
The basic concept is this:
You want to find existing businesses where the customer profile that you are looking to market your products and services to matches. Then develop a relationship with those business owners to create an incentive for customers to purchase from both businesses. As a result, you have an audience to market to and they generate an added value from their current base.
How do you figure this out? There is a great formula from Jay Abraham that I used in one of my businesses that you can follow and have success.
LV = (P x F) x N – MC
Here’s what it all means:
- LV is the ‘life-time value’ of a customer
- P is the average ‘profit-margin’ from each sale
- F is the number of times or ‘frequency’ a customer buys each year
- N is the ‘number-of-years’ customers continue to purchase from your business
- MC is the ‘marketing-cost’ per customer (total costs / number of customers)
Once you’ve calculated how much you need to spend invest to attract a new customer, you will know how much of an incentive you can offer to a business to help attract new customers.
Your step-by-step process:
- Find businesses who already have the customer base you are looking for
- Negotiate an incentive for them in order for them to share that customer base with you
- Focus your marketing resources to this group of predisposed customers
If you need help working through this process, check out our FREE test drive for the most comprehensive system of marketing tools and resources at www.ProfitandCashFlowMarketing.com
And, to get more information and receive other no-cost special audio downloads, reports, articles, blog posts, and more, visit Ron Hequet where I cover valuable topics that every person wanting to grow their business or career needs to know. And, if you’re ready to take your business to the next level, get a free assessment from me personally at Free Business Assessment or for those wanting to build your career go to Complimentary Coaching Assessment.