Is your marketing planned and purposeful? Or is it random and scattered?
Do you find yourself posting on social media whenever the wind blows?
When someone calls to solicit advertising or donations from you, do you have a reason for agreeing or declining? What is your litmus test?
Marketing, if it’s to be the most effective it can be, is targeted and purposeful. It’s a resource that you use with intention. Your marketing dollars, whether that means actual dollars, or your time spent, (time is money-you are not free), should be spent wisely.
If you think your marketing plan is a tad ‘willy-nilly’, or you want a litmus test for the marketing you are currently doing, keep reading.
Marketing is definitely a place where owners of small and medium businesses can really take advantage of the “big guys” and their dollars. We can look at big business practices and scale appropriately. After all, some spend hundreds of thousands of dollars on marketing research. Lucky for us!
To be the most effective with your marketing:
Know Your Target Customer (Big Business does you can bet your boots.)
- Who exactly is this?
- What do they look like?
- How will I know who my target customer is?
- Aren’t all people my potential customers?
Let’s begin with the end.
Aren’t all people my potential customers?
Short answer. No, definitely not. If you think you’re for everyone, you’re marketing to no one in particular.
Imagine a glass of fresh squeezed lemonade. Freshly squeezed from real lemons, some sugar, add a bit of water, and BAM! You’ve got a winner. It’s delicious! Everyone wants more. It’s thirst quenching, tangy, sweet, and refreshing. People ask you for the recipe. They move in for seconds and thirds.
If you water it down, trying to extend it so everyone gets some, it becomes blah. No one is really stoked about it. No one is passionate about wanting more.
Don’t water yourself down. You’re not mediocre, watered down lemonade.
How will I know who my target customer is?
What do they look like?
Begin by looking at your current clientele.
The Pareto Principle states that,
“. . . roughly 80% of the effects come from 20% of the causes. . .”
This means that 80% of your business comes from 20% of your customers.
Sounds sketch? Try it! Run the numbers. See how close Mr. Pareto is in your world.
My guess is that you could, just by memory, right down at least your top five. But don’t rely on memory alone, numbers don’t lie. Find out who is in your top 20%.
This 20% is your target market!
These are the people to whom your marketing should be speaking. These people are your focus. Why?
- They have been searching for what you offer.
- Your business has been looking for them.
- You are a match made in heaven. They fit you, and you fit them. (Purchasing numbers are proof.)
Some people might look at this and think, “gosh, look at that 80% group. If I could increase sales to them – make them comparable to the 20%, I’d be killing it!”
Not quite. . .
Definitely give that 80% your best. Definitely keep marketing to them, serving them, and meeting their needs. Do what you can to move them into a higher percentage bracket for your business. However, there’s a reason they’re in your 80%.
They’re 80% because they don’t exactly fit you and you don’t exactly fit them. You get along OK but it’s not the best match in the world. And, the further they are from your top 20%, the more likely they won’t end up in the top 20%. Your time is better spent focusing on the needs of the top 20%.
Please don’t and for that I am saying to give the 80% less great service or product. Not. At. All! EVERYONE receives your very best. All the time. It’s the right thing to do.
Know that some of your 80% will fit into someone else’s top 20%. They have a magical home somewhere. It’s just may not be with you.
Your marketing dollars and your time, (time is money,) are best spent in your sweet spot. Your top 20% loves you, and you love them. This is where business gets really fun and saves you copious amounts of time and money!
It cost 6-7 times more money to acquire a new customer than it does to keep an existing one.
You’ve already spent money finding your top 20%. Here’s the golden nugget. Your top 20 are associated with, have friends, maybe even family, that will ALSO fit in your top 20! (Or they will be pretty darn close.) This group of 20% is a gatekeeper of sorts. Let’s name your top client/customer, Alice.
Alice has intimate access to many people just like, or very similar to, her. The people that Alice knows are all potential customers that would be a great fit for your business.
Now, you can go spend a lot of marketing time and money working to find those friends., OR, you can just Go Ask Alice for access to her people!
Alice is a most efficient doorway for you to enter and step into phenomenal, purposeful, targeted, business growth.
The referrals that you want the most are from your top 20%. These top 20 are the most likely to introduce people to your business that fit your Target Market very well.
It is a BLAST to treat people well and have them love you back in the form of their continued business and referrals. They love it, you love it, everybody benefits.
So go run some numbers! See who they are. Start figuring out if they have similar qualities like age, sex, interests, incomes, needs, goals, etc.
Begin with the steps:
- Identify top 20
- Figuring out what they have in common, what they’re searching for, goals, etc.
- Meet those needs and goals of your customers!
Identify your top 20%? Tell me what you found out!
Shoot me a note at: firstname.lastname@example.org
Your place for continual improvement and inspiration!