Category: Target Market

2 Basics You Can’t Ignore If You Want To Scale

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I know my target audience…it’s anyone who will pay on time, pay full price, and who will request work when my calendar allows. Is that so hard?

There are countless strategies to be studied, and an ever growing number of platforms, tools, and magic potions available for sale to run and grow a business. This only makes it easier than ever before to get distracted by all of the shiny objects for ways to shortcut the rocky road of success. 

For today’s Fundamental Friday, let’s talk through two basics that I was reminded of during a recent podcast I was listening to from Tony Robbins. Love him or hate him, the guy knows a thing or two about business and success…

Tony was asked, and I’ll paraphrase a bit, “If every book you ever wrote was lost, burned, and disappeared from the face of the planet and you had just brief moment to spend with a business owner who is trying to figure out how to grow their business, what would you tell them to do?”

It comes down to two things:

  1. Know your ideal client
  2. Have an irresistible offer

Let’s tackle the first one, first.

Knowing your ideal client is more than a demographic description, nor can it be the blue ocean description I hear all the time that was referenced at the beginning of this post. We’ve all heard that if we want to be all things to all people, we’ll end up being no things to no people.

Think about it. When was the last time you saw an ad, particularly online, that said something to the effect of “Call today to get your [insert widget here] for everyone with a heartbeat and can fog a mirror”? 

Ok, maybe those weren’t the exact words, but they might as well have been if you immediately scrolled past the ad without a second thought or microsecond of pause. Happens millions of times a day, every day. 

Contrast that experience with seeing a message that speaks to a problem or solution that is relevant to a single person or group. When we’re introduced or exposed to, or even search for, something that addresses a specific and clear need – we pause and stop scrolling… we might even click on that result. 

How can we paint a clear enough picture that compels our ideal client take action if we don’t know – or haven’t take the time to define – who they are? There’s step number one.

On to point number two.

What makes an offer irresistible? Before we dive into that, one of the crucial mistakes I see happen all the time is pulling the price lever and discounting the margin to next to nothing to drive response. The failed assumption that business owners make is that results aren’t there because we’re charging too much, or that price is the final thing standing in someone’s way from buying.

Here’s the deal. People will pay twice the price if they believe they’re getting four times the value. So, rather than brainstorming a way to slash prices or invent a fancy discount or flash sale, why not spend the same amount of time coming up with a way to bundle your product or service in a way that removes the apples to apples price competition and race to the bottom by defining a way to show more value with what you offer?

Here’s a super easy example:

Sunroom Company A is running a special for $2000 off their standard size sunroom that retails for $10,000 but is now discounted for $8,000. 

Sunroom Company B is selling their same sized sunroom for $10,000, but it includes $4,500 worth of furniture that will instantly make the new sunroom an amazing place to hangout with family and friends.

As a consumer, I know I’ll spend $2,000 more with Company B, but I’m getting $4,500 in value – plus it saves me a step of having to shop for and and haul (or deliver) the furniture set my new sunroom needs. No brainer.

BONUS HACK: Company B is MORE profitable on the sale than Company A. Why? Company A loses 100% of every dollar of that discount right off the bottom line. Company B? They negotiated a deal with a furniture supplier to get the $4,500 of furniture for $1,600 at a wholesale rate.

Coming up with what your irresistible offer is takes some creative thinking, and has to be based on things your ideal customer values, but this ought to give you a start for how to begin defining these two must-haves.

Start with the fundamentals.

-David

Stop Wasting Your Resources!

Today you’re going to learn how to find a target market of potential customers so you aren’t wasting precious resources on blitz marketing. So, the two questions you have 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 more predisposed to purchase your products/services. Then, you find other businesses with the same customer base who you can customer share with. 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 they 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. 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, please contact us and we’ll set you up with the most comprehensive system of marketing tools and resources.