Stop Wasting Your Resources!
In my conversations with business owners I come across many common “themes”.
One of those “themes” is a waste of resources…usually on the newest “shiny object” they think will help their business.
I will write an article on what I call “The Shiny Object Syndrome” at another time.
Resources are at a premium as you are certainly aware when owning or running a small / medium enterprise. And by resources I do not mean simply dollars and cents.
Time is a more precious resource as we can never buy any more of it.
So, money and time are your primary resources that as an owner or business person we need to protect and not waste away.
Today my focus is on how to find a target market of potential customers, so you aren’t wasting precious resources on blitz marketing.
So, the two questions you must 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.
How do you customer “Share”?
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 the other business owners will generate an added value from their current base.
So, how do you figure this out? There is a great formula from Jay Abraham you can follow with great 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 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.
Here is a link to Jay’s website which has fantastic content and is worth visiting:
So, here’s your step-by-step process:
1. Find companies who already have the customer base you are looking for.
2. Negotiate an incentive for them to share that customer base with you.
3. Focus your marketing resources to this group of predisposed customers.
If you need help working through this process, check out our no-cost test drive for the most comprehensive system of marketing tools and resources.
Thank you again for reading. Make it a great day.