Stop Throwing Away Resources!
Ok, let’s learn how you find a target market of prospects so you aren’t tempted into wasting your precious resources doing blitz, also called “awareness”, marketing. Ask yourself these two questions:
- What do my potential customers actually want to buy?
- What are the products they are already purchasing that are related?
When you know this you’ll know who is more likely to buy your products/services. Then, find other businesses having the same type of customer base that you can share clients with. Cook up a good incentive and work establishing a great joint venture arrangement that will encourage your combined customer base to shop at both of your businesses.
The underlying concept is:
Find existing businesses having the same customer profile you are looking for so you can market your products and/or services to them.
Strike up a relationship with these business people and together work out an incentive for prospects to purchase from both businesses.
Do this and you’ll have an additional audience to pitch to and your JV partner/s also generate an added value from their current base.
So, how do you work out the numbers? Here’s a great method by Jay Abraham:
LV = (P x F) x N – MC
What it means:
- LV = the customers lifetime value
- P = the average profit margin per sale
- F = the amount of times a customer purchases per year
- N = how many years customers buy from you
- MC = the cost of marketing each customer (total expense divided by the number of buyers)
When you’ve calculated how much you spend to attract every new customer, you’ll know what size of an incentive you can offer to another business to help attract new customers from their customer pool.
Here is your process set out step-by-step:
- Search out other businesses already having the customer base you want to tap into.
- Figure out then negotiate an incentive that will have them keen to share their customers with you.
- Focus your marketing efforts and resources on this group of already targeted consumers.
Go get ’em! Remember, if you want guidance working your way through the above process we’re only a few clicks away.