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/
People only remember the extraordinary, strange, wild, surprising and unusual. You need to make sure your ideas and marketing reflect these reactions. This doesn’t mean you have to have a product or service that is completely out of the norm, in fact, this could easily drive customers away. You need to have a product or service that is high quality and easily marketable, then you need to market it as extraordinary and new.
As you research word of mouth, there are some questions you need to ask along the way:
What are the users willing to tell the non-users?
- Exactly how do your customers describe your product?
- What are the non-users willing to ask the users?
- What are the things they need to know, but are unwilling to ask?
- What happens when these issues are raised?
- Exactly what do your prospects have to know in order to trigger purchase?
- Exactly how do your customers answer the objections, concerns, and qualms of your prospects?
- How do your customers persuade their friends to use your product?
- How do your customers suggest they initially get to know or try your product?
- What warnings, safeguards, tips, and suggestions do your customers suggest to your prospects?
- Are your sales messages, positioning, and important facts about your product getting through and surviving word of mouth?
- What messages do you need to inject into the marketplace in order to turn the tide in your favour and how will you deliver them?
There are two main reasons why word of mouth research is so important:
- To get the real impression and feedback from customers
- To define word of mouth itself and the concept it creates
There is a simple formula that can help you conduct your word of mouth research. It’s called the “2-2-2” model.
What this breaks down to is:
- 2 groups of customers
- 2 focus groups of prospects
- 2 mixed groups (enthusiasts & sceptics)
In these groups you need to ask the following questions:
- What would you tell a friend?
- How would you persuade a sceptic?
- What questions would you anticipate from a sceptic?
- How would you answer their objections?
The best way to conduct these groups is by teleconference. This ensures you’ll get a good variety of demographics for your customers and potential customers. It also allows people to feel safe and more able to express their true feelings. These teleconferences should not be conducted by you, but an independent party to avoid adding pressure to the situation.
We’re going to transition a bit and talk about how to construct a word of mouth campaign. First, we’ll talk a look at the essential ingredients you need to put together a campaign. These ingredients are:
- A superior product
- A way of reaching key influencers in your marketplace
- A cadre of experts willing to bat for you
- A large number of enthusiastic consumers
- A way of reaching the right prospects
- One or more compelling stories that people will want to tell to illustrate your product’s superiority
- A way to substantiate, prove, or back up your claims and how the product will work in the real world
- A way for people to have direct, low-risk experience, a demo, sample, or free trial
- A way of reducing overall risk, an ironclad guarantee
Once you have those ingredients ready to use, you should consider the situations in which your company can benefit from a strong word of mouth programs. Some of these situations are:
- When there are credibility problems
- When there are breakthroughs
- When there are marginal improvements
- Where the product has to be tried in large numbers or over time
- Where there is high risk in trying the product
- With older or mature products that have a new story that people tend to ignore
- With unfair competitive practices such as spreading rumours, or telling lies about your product
- When there are governmental or other restrictions on what you may say or claim directly
While, most of the word of mouth tactics are positive for your word of mouth program, there are a few products to avoid using in this program. They are:
- Products where a seminar would not provide meaningful added value
- Products that can’t be tried and where there is no consensus among experts
- Products that are clearly inferior, without having a compensating superiority for similar products
- Products that are so personal or emotion that rational discussion is irrelevant to the decision
- Products where the decision value is so small (low price/low volume) the medium will not be cost-effective.
This wraps up this post on word of mouth research and how that research can be used when putting together your word of mouth campaign. If you need help with the research and a plan to use the results of that research, try our GUIDED TOUR to get all the help you need with our top-notch resources and tools.
Today I’d like to discuss the science of the memes and how spreading ideas around and through society is ingrained in humans.
This refers to types of ideas that spread the fastest through society, why they spread fast and how that affects consumerism. You can use this same information to create a lasting positive impression about your company, products and services. People are more likely to try a new product or services when they feel protected and reassured by the masses.
It’s been determined that spreading ideas is essential to the survival of a society. There are 5 main situations where this occurs. They are:
Think of evangelism. This is prime example of people not only spreading the word, but convincing people to jump on board and start to spread the word themselves. To do this effectively, you need to incorporate a few key things that always catch people’s eye:
Next, we are going to switch gears a little and talk about viral marketing. While, traditional marketing can be used to your advantage, the reality is viral and online marketing is the king of the castle. You can spread the word online like the plague, if you know what to do. Here are some simple steps to do this:
Find an interesting idea
Make it easy for people to experience or trial
Spread the idea while people who are in close contact with others
Take advantage of existing communication methods
Develop the way of trying your product in such a way that it automatically draws more people to test
Some great places to use viral marketing are:
AOL Instant Messenger
MSN Instant Messenger
“Tell A Friend” Buttons
There are six things everyone should be doing to benefit from word of mouth on the Internet:
Put WOM components on your website.
Assign people to monitor your viral marketing.
Place testimonials in different places on your website to walk a customer through the purchasing cycle.
Set up an email marketing campaign.
Stay up to date on what products and services the experts in your industry are recommending.
Use your website to demonstrate the great ways people are using or finding success with your products and services.
Here are other non-viral Internet opportunities to explore:
And other well-connected electronic devices
This wraps up the lesson on traditional and viral marketing. If you need help putting together any of the plans or successes in this lesson, try our GUIDED TOUR to get all the help you need to put these plans into action.
Today’s lesson will talk about how word of mouth messages are delivered and how you can influence those messages.
There are essentially 3 methods of word of mouth:
- Expert to Expert
- Expert to Peer
- Peer to Peer
When experts are talking about your products or service you will usually receive an amazing rush of sales and new customers, so obviously this is one of the best things that can happen. You can also help to facilitate this by offering free products to experts for them to review.
Expert opinion can also bring about new ideas that help to fuel new products, services and operating systems within your company. If you take the time to change or develop the opinions of even a small group of experts, you will have the opportunity to help your market explode.
There is a standard word of mouth delivery system that, in most cases, takes a few years. But you can speed this up into only a few weeks. The standard system is:
- First impressions from an expert
- Organised trial of your products or services
- Pooling peer experiences
It’s important to know exactly who is advocating for your products and service. Take the time to find out who they are and reward them. While, you may already have a customer service system for filing complaints, do you have one for compiling praise? Most likely not. If you take the time to show these people appreciation, they will help take your products and services to the top.
- Some of the ways you can show them appreciation are:
- Invite them to a customer appreciation dinner
- Offer to video tape their testimonials
- Ask to interview them for feedback to improve with
- Offer them a premier customer membership
- Ask them to join a referral incentive program
There are lots of things you can offer your biggest fans to help spread the word about your products and services.
Conventional media has been around forever and while it can still be effective, it’s lost a little of its lustre over the last few years. There are a few reasons for this:
- Expensive and doesn’t necessarily return results
- Boring, lacking something fresh and new
- Too short of a time slot to offer enough information
While these are all true, there are ways you can make conventional media work for you. For the information to be effective it needs to be presented in the right sequence, come from the right sources, be relevant to the target customer, be credible and be delivered at the right time in the medium.
We’re going to switch gears a little and talk about the two phases of the product adoption cycle. Traditional media is great for taking you through the information stage where you can offer the information you need to your potential customers, but it’s not so great for measuring the results of those efforts.
Without these results you can’t fine tune your marketing and therefore can easily miss the boat and lose potential customers and waste a whole lot of money. Once a consumer has the information they need, they’ll go through a verification process as they analyse whether or not the purchase was a good one. They generally get their information through:
- Direct experience with the product
- Interaction with peers using the same product
- Experts’ experience
- Scientific journals and other resources
- Independent reviews and opinions
- You can accelerate this process by:
- Providing your own demo’s and free trials
- Offer them indirect experience through the experience of others
- Offer a good true story that can be passed around
Once you have the ability and are able to work through these concepts, you will be able to target your customers much better. If you need help with any of this along the way, try our GUIDED TOUR to gain access to our experienced business coaches.
Today we’ll cover the idea of shortening your customers’ decision making process with positive word of mouth. There are essentially 5 stages in the decision making process.
1. Give the product a chance and transitions from a “no” to a “maybe”.
2. Check out the options and investigate the different products available.
3. Observe the product to check for potential benefits, features and operations to see if there is a fit with their needs.
4. Become a customer and purchase their first item. They will be discriminate with their first product as they form their opinion of you.
5. Purchases again and starts spreading positive word of mouth as an advocate of your products.
So, let’s take a closer look at each one of these.
From “No” to “Maybe”
This stage is really important because if your potential customers don’t even take a second look at your products and services, then you have no chance of sealing a deal. Therefore you need to offer credible information and well thought out pricing, guarantees and incentives.
Investigating Your Products
At this stage they are taking a closer look at your product line to see if there is actually anything that could benefit their life. This is where you need to make sure your hard information is right out there in front for the customers to see and compare.
Customers often feel more at ease and ready to purchase when there is some sort of a trial in place. They usually want to try vicariously through someone else, so they don’t feel any risk involved. A good way to offer this is through demo videos, product demonstrations or a tour of your facilities. This stage may invoke a reaction of “I tried it and liked it. You should check it out.”
Make a Purchase
At this stage, they have taken the risk of purchasing one of your products or services and are now evaluating how easy, convenient, cost effective and satisfying your product or service is. At this stage a common reaction would be, “It was really easy to use and learn from. It’s really great, you should get it!”
Advocates for Yours Products
At this last stage of decision making the customer is immensely pleased with your product and often keeps using it and/or comes back for more products and services. They are likely telling everyone they know how much they like it, that they use it every day and have already (or will be) back to your establishment for more.
We talked a minute ago about the different types of purchasers. Now we are going to take a closer look at their characteristics, so you can figure out which tactics are best to use at the right stage of the decision making process.
• Wants to stand out from the crowd
• Know what’s hot and trendy
• Likes “strange” or “weird” new products
• Wants to be the first to try and will talk about it animatedly
• Driven by excellence
• More concerned with possibilities than realities
• Always looking to be a leader
• Always looking for a new vision
• Wants to be perceived as competent
• Concerned about practicality and easy comparisons
• Needs an easy way out if not satisfied
• Wants products that meet the industry standard
• Generally skeptical and wants to know the risks upfront
• Needs to shop around for the best deal
• Needs a support system
• Wants what everyone else has
• Needs it to be completely safe and traditional
• Needs reassurance that nothing will go wrong
• Won’t try new things unless it’s the last resort
• Will search for loopholes and problems
• Wants to use it in the standard industry way
As you can see, each type of consumer wants something just a little different depending on their personality type. The key to successful word of mouth is to target and cater to each type of consumer. If you need help identifying the types of consumers you are currently helping and how to attract the types you are lacking, try our GUIDED TOUR for the resources and tools you need to get the job done.
Next time we’ll talk about how word of mouth messages are delivered and what you can do to help facilitate that.