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:
- Find companies who already have the customer base you are looking for.
- Negotiate an incentive for them to share that customer base with you.
- Focus your marketing resources to this group of predisposed customers.
I hope you have enjoyed this article and that it has provoked some useful thoughts for you and your business.
Thank you for reading.
PS – Check out my latest book which is a free download at: https://tannahillbusinesscoaching.com/
Customer service is a pretty hot topic and can make or break your business. Consumers have little patience for lousy customer service and easily get tired of waiting in long lines, trying to get a live person on the line, going through an interrogation to return something or trying to communicate through a language barrier.
If you provide them with a simple, efficient, pleasant experience they will revisit your business over and over. More importantly, they will tell everyone they know!
There are three secrets to good customer service, the first one we’re going to conquer is knowing exactly what YOU want.
You are the captain of the ship and the visionary for the future of your business, so you need to have a clearly defined plan for your business and that includes customer service. There are three main goals you need to consider:
1. It needs to be easy for your customers to do business with you. You can do this with advertised discounts, kiosks, your website and other technology-based programs to help them shop.
2. Doing business with you needs to be a warm and pleasant experience. Your staff has to be knowledgeable, approachable, warm and patient. Your customers need to feel like they are getting a good value for their time and money. Perceived value goes beyond the price of the products and extends to their shopping experience.
3. Change your mind set and ask yourself “How can I NOT afford to do these things?” This shouldn’t be a question of expenses but making and keep happy customers.
Which these thoughts in mind you also need to take a few things into consideration when deciding on the actual programs and standards you’ll put into place.
• Share your customer service vision with the rest of your staff.
• Connect your incentive programs and bonuses directly to customer service.
• Monitor the level of customer service your staff is putting out.
• Know when you can ignore what your customers want.
• Continuously focus on your goals.
Now, that you know what you want you can start thinking about how to meet those wants and create a positive customer service experience.
If you’re having a hard time deciding on what you want, the tools, resources and coaches in our GUIDED TOUR can help you define the wants and needs of your company in relation to customer service.
In the last post we talked about negotiating with your big fish and how to nurture and build on the relationships you are creating. Today we’ll talk about the power your fish has and how to utilize that for your benefit.
One of the most important aspects of this is to keep your cheerleader cheering. This refers to the ally you created in the company and who needs to stay loyal to you for you to continue a profitable partnership with your fish. You can keep your champion going by offering or doing a number of things to show appreciation. Some of these things are:
• Share the limelight.
• Help them thank their company with new products and services.
• Emotionally connect them to your company.
• Know when to leave them alone.
• Keep your “family” happy.
• Stay on the front lines.
Now that you have some ideas of how to build solid relationships, you need to seek out people to build these relationships with. These alliances will help you get bigger clients that stay with you forever. You can often get in the door by offering them something in exchange for something they need:
3. Better work experience
These are all great ways to feed your alliance. You need to go into a relationship considering the things a big fish can offer you besides money. These can include:
• The opportunity for your business to expand
• The opportunity to learn from the experience and find ways to grow
• The opportunity to improve your processes, systems and other means of doing business
These are some of the best ways to keep your alliances going strong and your partnerships fresh and content.
If you need help with any of these tactics, try our GUIDED TOUR for great tools and resources that can help you every step of the way.
The Rule of 1% is simply defined as adding to your customer service one percent at a time. Before you can do this, you must have your consistency perfected or it will never work. This one percent may seem small, but if you approach the vision for your company with baby steps, you will find a huge increase over a solid chunk of time. It’s not a sprint, it’s a marathon.
Avoid doing too much at once or you will set yourself up for failure. Think of the confidence you and your employees will have when you improve one percent each week. By the end of a year, you’ll have improved more than 50%!
While, rules and standards are necessary for growth, always be flexible with your best customers. Most retailers only allow a set number of items into a dressing room to reduce the risk of shoplifting, but it generally restricts the large percentage of people who are not stealing from you. Flexibility is the key to what you deliver to your customers and consistency is the key to how you deliver it.
The bottom line is customers rely on you to deliver what you promise. If you spend too much on bulky advertising that promises more than you can deliver, even your best intentions will unravel quickly, and you will fail.
Focus on your vision and baby steps to turn your satisfied customers into Raving Fans.
I hope you’ve learned a lot out good customer service and how it’s essential to your overall success. If you need help with any of the steps we’ve gone through over the last four lessons try our GUIDED TOUR and get access to some of the best resources, tools and coaches available.
In upcoming posts we’re going to explore strategies of bagging the big clients and keeping them.
In the last post we talked about the first secret to building a solid customer service plan and how to decide what your vision is.
Today we’ll talk about the second secret in taking your satisfied customers to raving fans. You must know what your customers want. Know who your customers are, and you will know better how to serve them. Demographics are really important here. An upper-class woman in her 30’s is going to have completely different expectations than a working-class man in his 50’s.
There are four main areas you need to consider and plan when figuring out what your customers want:
• Listen to Your Customers
• Ask Your Customers Sincerely
• Offer More than Just a Product/Service
• Know When to Ignore Them
These are all important when deciding what your customers want out of their shopping experience.
Listen to Your Customers
You need to listen to both what they say and what they don’t say. Customers may say they want one thing and really mean something else. For example, if you customers are begging for lower prices, you may find out their real priority is quick delivery.
Also, listen to your “silent” customers. These are the customers don’t bother to complain because the service is so bad they’ve just given up and don’t feel like their voice matters. They feel unwanted and when a competitor shows up, they’ll be gone.
Lastly, you need to listen to customers who only reply with “fine”. These customers are similar to the “silent” customers in that they are so used to bad customer service they only give a monotone response.
Ask Your Customers Sincerely
If you aren’t sincere when you ask their opinion, they are going to see right through you. You may be thinking, “What about the customers who aren’t saying anything?” You need to ask them sincere questions that get them thinking about their experiences. Make them feel like you really care, and you should!
Offer More than Just a Product/Service
Your customers are looking for much more than a simple product or service, they are looking for an experience that makes them feel good. They gauge every step of the process with a value. When you take this into consideration and treat them like people, they will feel like they belong.
Know When to Ignore Them
You may think this goes beyond providing good customer service, but in reality you can’t give them everything and someone people you will never make happy. You must set limits and stick to them. If your vision and company don’t meet the needs of the customer, they will be best suited somewhere else.
These are the steps and tricks to figuring out what your customers want and how you can use them to work on your customer service vision and plan.
If you get stuck, try our GUIDED TOUR and let us help you through the process.