How to Stop Wasting Your Marketing Resources!
Joseph M'Mwirichia ?? SME Specialist and Investor
Helping Small-Medium Business Profitability>> Specialized Tax Strategies | Digital Marketing | Expense Reduction | Strategic Partnerships | Development
This short read covers one of the ways to find a target market of potential customers so you aren’t wasting precious resources on blitz marketing. We start by asking ourselves these two questions;
- 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 and come up with incentives 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 out how much you can allocate towards this campaign? There is a great formula from Jay Abraham you can follow with great success.
LV = (P x F) x N – MC
Where:
- 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 (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 will know how much of an incentive you can offer to a business to help attract new customers.
In conclusion, here’s a recap of your step-by-step process:
1. Find companies who already have the customer base you are looking for.
2. Negotiate a lucrative 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 FREE test drive here for the most comprehensive and dynamic system of marketing tools and resources.