I had a client recently tell me that one of his mature, declining businesses needed to be resurrected. In reality, the market dynamics were all running against this decision. The product line had run its useful course as substitutes were becoming more important to the end user. Competitors were dropping pricing to maintain share and customers were feeding the frenzy by insisting on the lowest priced alternative. This is just one example of many I can site. I’m sure you have your own stories you can tell. It isn’t a good position to be in.
Now you are going to find out the best way to locate a target market of expected customers so you aren’t wasting valuable resources on blitz advertising.
Thus, both questions you must ask yourself are:
- What do folks actually need to purchase from me?
- What merchandises that are associated are they purchasing?
When you figure this out you’ll understand who’s predisposed to buy your products/services. Following that, you find other companies with exactly the same customer base.
The fundamental theory is this:
You need to seek out present companies that have the customer profile that you’re seeking to promote your products/services to.
Because of this, you’ve got an audience to market to and they create an additional value out of their present base.
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.
How do you figure out this? There’s an excellent formula.
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 typical profit margin from every sale
- F is the amount of times each year, a customer purchases
- N is the amount of years customers remain with you
- MC is the marketing cost per customer (total costs/number of customers)
You’ll understand just how much of an incentive you’ll be able to provide to a small business to help bring new customers, knowing how much you really should spend to bring a fresh customer.
Here’s your step by step procedure:
- Locate businesses who already possess the customer base you are seeking.
- Negotiate an incentive to allow them to share that customer base alongside you.
- Concentrate your advertising resources to this group of customers that are predisposed.
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Today we’ll talk about shameless self-promotion. That’s right, I said it! Shameless! After all, we are learning from Paris Hilton here.
It’s all about self-promotion! Self-promotion comes in many forms and you can use different tactics to get your name out there. Look at politicians! Talk about self-promotion and in some not so discreet ways, at that. But, seriously, consider some of the major superstars we all know. Madonna, Donald Trump, Howard Stern and Bill Clinton, just to name a few.
We all self promote. Did you raise your hand in class to show the teacher you knew the answer? Of course! That’s self-promotion. This is the kind of self-promotion we are talking about. With dignity, class and the knowledge to back it up. If you self-promote only to prove you don’t really know what you’re talking about, you’re going to lose business.
Natural self-promoters are the former and I want to tell you about the three major traits they have and use to build themselves and their businesses.
- The first is position. You need to position yourself around people who can make a difference in your life. You need to do this frequently. You need to wake up every morning and ask yourself “Who can I meet today who will make a difference in my success?” In fact, go a step further, write it in big, bold letters and tape it on your bathroom mirror.
Who can help me meet my goals?
Is it a prospective customer/client? A colleague with contacts? An association with key members who may become prospects?
Don’t settle into interacting with the people who are the easiest to access. You need to reach outside your comfort zone and there you will find a wealth of new connections that will bring you great success.
- Now, let’s talk about Style. No, this doesn’t mean you need an Armani suit to bring in more business (though, let’s be honest-it wouldn’t hurt) J What this really means is how are you different from your competitors and others in your industry. What makes you memorable with customers?
If you are meeting a lot of people and they don’t remember you once you leave the room, you have a serious problem! This means you have an opportunity to present yourself in a more memorable way.
There are lots of little subtle changes you can make. Reassess your:
- Business cards
- Company message
- Your picture
- Your wording
Maybe even, your hairstyle (of course, now we’re back to the expensive suit, but it really works!)
You get the idea. There are lots of little ways you can work on making your image and business more successful. Also, consider how you sound on the phone and how you great people at meetings or other events. Think about your 30-sec elevator speech.
- The third trait of natural promoters is repetition. You can’t say it once and leave it at that. Successful self-promoters say it as many times as they need until they get a response. Would you remember a commercial for Coca-Cola if you only saw it once, no! You see it over and over and eventually you head out to the store.
You, also, have to make multiple impressions on those you are networking with in order to build brand awareness. Repetition is in direct connection with positioning. Once you find people to network with, reach out and find hundreds more who can help in your success as well.