You have probably heard the saying, if you want to make money, find a hungry crowd and sell them what they want. What this means is that it is always much easier to find people who are craving pizza and then sell them pizza, than it would be to sell them apples.
It is super-important that you start with finding a hungry crowd of people who are willing to buy a certain item. This hungry crowd will be referred to as your “target market”. There are several things to consider in selecting a target market.
You should choose a target market based upon size, how often new people are looking for what you sell, if that market has already been proven by someone else, if you can get access to known buyers in that market, if that market has unmet needs and desires, etc.
Once you have selected a target market, it is super-important that you identify who your ideal customer is within that target market. In order to identify your ideal customer, you will need to do some market research and learn about their likes, dislikes, average age, etc.
You can then develop what we call a “customer avatar” that represents the most typical customer that you want to serve in that market. Of course, not every customer will match that customer avatar exactly, but it is still important to have that customer avatar in mind when you do your marketing so you can craft a message that would get their attention.
Once you have selected the target market and identified your ideal customer within that market, you can then get busy with attracting that customer. Here are several strategies that you can use to attract that perfect type of customer.
Strategy #1 – Lead Generation
Lead generation is a process where you find out that someone has an interest in what you offer by asking the prospect to take an action to show their interest. In the online world, this is usually done with an opt-in form where they enter their name and email to request more information. In return for their email, you may offer them a bonus, such as a free report, that is related to the item you would like to sell them.
There are a number of other ways to generate leads, such as by placing an ad in a newspaper and having the reader call a certain phone number, or asking a prospect to mail in a certain form.
The key point about lead generation is that it allows you to attract people who you have already qualified as being interested in the type of product or service that you are offering.
Strategy #2 – Joint Venture With Others Who Have Your Ideal Customer
Another great strategy to use for reaching your ideal customers is by partnering with other companies or people who already have a relationship with that audience.
The best way to begin a JV relationship is by approaching another company and offering to do something for them first. Find a way to help out other companies that already serve your ideal customer, so they will want to reciprocate and do something for you.
One of the fastest ways to grow your business is by doing JV deals with companies who already serve your ideal customer.
Strategy #3 – Outspend Your Competition
The more money you can spend on obtaining your ideal customer and still making a profit, the more you can dominate your market. If you can spend more money than your competition because your marketing system and overall sales process is more efficient and generates more profit, then your advertisements can be shown more frequently than theirs.
You can literally buy your way to the top if you can outspend your competition and still make a profit. But you will have to be able to calculate how much you can afford to spend to acquire a new customer before this strategy will work. The lifetime value of a customer can be calculated by determining how much a new customer is worth based upon the first sale, as well as the future sales.
Strategy #4 – Use Multiple Channels To Reach Your Ideal Customer
Another great strategy to use for reaching your ideal customer is by advertising in various channels. This can include offline, online, phone, face-to-face channels, etc.
We’ve already talked about many different channels in some of the other newsletters. But the key point here is that you want to get out there and reach your ideal customer in the various places and ways that they can be found.
So there you have it. Identify your target market, and then get out there and sell them what you offer. If you have a great product, then you owe it to society to get that product or service in front of them. Don’t let your great products sit on the shelf collecting dust.
To learn other ways to increase your revenue, then make sure you sign up for the special Business Mastery Training webinar.
For other business strategies on how to grow your business, then check out a free business startup and growth training program. If you haven’t signed up for that free course yet, I highly recommend you check it out too.
*Originally published as Issue # 27 – September 20, 2011