Today you will learn how to find a target market of potential customers so you aren’t wasting precious resources on blitz marketing. Two questions 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 predisposed to purchase your products/services. Then you can find other businesses with the same customer base which which you can share customers. Come up with an incentive and great arrangement 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 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, both businesses get a targeted audience to market to and generate added value from their current base.
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 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 (their frequency)
- 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 can see how much of an incentive you can offer to a business to help attract new customers.
This is 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, please contact us and we’ll set you up with the most comprehensive system of marketing tools and resources.