You have loads of customers, and you could do with more, right?
When you think about it, you only work with one customer at a time.
This being the case, your marketing strategy should be directed to one customer at a time. (stay with me…)
You have heard that the key to effective marketing is being able to identify your ‘avatar’, i.e. your ideal customer type. Developing a niche of products for customers may be fine for larger organisations, but as small business owners we are mindful that we often have to diversify our offer.
However, you are more specialised than you think.
Some customer types in your industry are better suited to you, and others are better suited to your competitor.
• Some customers want a cheap, lower quality product and buy often. Other customers demand high quality and are prepared to pay for it, but we do not see them as often.
• Some customers come to us; where others need us to go to them.
• Some customers need access to your product sooner; others are happy to wait.
• Some want a tailor-made product; others are happy for an off-the-shelf product.
• Some are happy to pay cash; others want 30 or 60-day trading terms.
• Some customers are happy to buy what you suggest, others need more nurturing and education.
How do you identify your best customers?
Here are the top 5 problems my clients face when trying to identify them, and how we work through them together:
1. “I have a range of customers.” That’s OK, you may have more than one customer group. Identify the key segments first. This will give you the best return on your marketing spend.
2. “I do not know who my customer is?” You know more than you think. Review the invoices you sent out last month and put these customers into groups. You can group them by product, sale size, location, new or repeating customers or product preference. You will start to see a trend.
3. “I’ve got many groups, but which ones are the most important?” Segment them by A’s, B’s, C’s and D’s. Start with identifying your A’s. They…
• collectively generate 80% of your most profitable sales revenue.
• are repeat customers.
• pay their invoices on time, every time.
• are easy to deal with.
• do not price shop or constantly try to get a discount.
• buy more than just your specials or promoted items.
• refer you to new customers.
• don’t return the goods they have purchased.
4. “If I narrow it down to the top 20%, I will miss out on the other 80% and my business will suffer.” Here is the thing. Narrowing your focus will attract more of the right customers, your acquisition costs will decrease and you will have a higher conversion rate.
5. “What if my new single customer strategy doesn’t work?” The good news is that we test and measure every strategy. Marketing is math. You’ll find that because you’ve identified who your customer is, you can also determine the route they came to you. Where do you invest your marketing effort? Social media, email, networking, radio, TV, magazine and/or word-of-mouth? Finding the intersection between your best customers with your best marketing channel will show you what works and what doesn’t. Do more of the marketing that works.
One of the largest costs to business is marketing spend. Some businesses just spend because they think it works, others do it because they believe that something is better than nothing or it’s what they did last year.
Focusing on your core customer is guaranteed to pay dividends. The best entrepreneurs today get the best results from their marketing through a systemised approach.
On Wednesday 31st March, Sam Harrop is running the TRADIE MASTERY WORKSHOP in Townsville.
Sam’s workshops are fun, informative and filled with useful practical information you can apply immediately.
Booking is essential and seats are limited, so it’s first in best dressed.
Did I mention there will be free beer 😉
Here are the details
VENUE: Master Builders Offices
DATE: 31st March 2021
TIME: 4 pm to 6:30 pm am (We will have the beers on ice and ready for when you arrive)
Book your FREE TICKET now at HERE
Sam “Customer Focused” Harrop