Today you’re going to learn how to find a target market of potential customers so you aren’t wasting precious resources on blitz marketing. So, 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 figure this out, you will know who is more predisposed to purchase your products/services. Then, you find other businesses with the same customer base who you can customer share with. Come up with an incentive and great arrangement to encourage both of your customer bases to shop at both of your stores.
The basic concept is this:
You want to find existing businesses who have the customer profile that you are looking for to market your products/services to.
Then strike up a relationship with those business owners to work out 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.
So, how do you figure this out? There is a great formula from Jay Abraham that you can follow with great success.
LV = (P x F) x N – MC
Here’s what it all means:
LV is the lifetime 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)
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 an incentive 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.
Carmen Ventrucci’s motto is Follow Your Road. She knows small business owners create their business so they can make an impact for their clients, community, family, and life.
Nicknamed by her clients as ‘The Girl with the Golden Shovel' due to results, Carmen helps her clients scale and grow their business so they can magnify their impact. Carmen is a small business consultant based in St. Paul, MN and serves clients across the USA with her company, True SISU Life, LLC.