How to target the best client for great sales and lifetime value using these simple internet ideas and free tools to maximise your marketing.
Who is your best client and how do you recognize them?
We all have a client list when in business and it may be a few names or thousands the principle is the same.
With your current list break it down into segments that you can analyse and learn from.
- The top twenty percent of customers
- Then the bottom twenty percent of customers
- Industry participation
- Local sales
- distant sales
- Online sales
The top twenty percent of customers
You will more than likely find that this group returns 80% of your income and gives you little or no worries. Losing any one of these is costly so pander to them. A lifetime customer is worth anything to your business however they need to be pandered. Remember others want there business as well.
The bottom twenty percent of customers.
This will be an inverse of the above, they provide only a small amount of income however they represent 80 percent of the problems.
At this point you may seriously consider getting these people to leave. They take up your valuable time and represent little value.
You may think this an exaggeration but it is based around a well known rule the Pareto Principle.
The Pareto Principle, named after esteemed economist Vilfredo Pareto, specifies that 80% of consequences come from 20% of the causes, asserting an unequal relationship between inputs and outputs. This principle serves as a general reminder that the relationship between inputs and outputs is not balanced.Wiki
Now it is not a hard and fast law however proven to be true in many circumstances.
How to target the best client for great sales by choosing an industry
We have found that one style of industry outshines all others and that is generally the case.
My personal observation, however is that you reach peak industry very quickly and that pursuing the remaining percentage will not yield great returns.
It could be best suited to pursue a new and related group that is not over represented. I don't really know the reason other than a personal need to do something different.
An example is trying to get an iPhone user to change to Samsung or reverse. It is difficult work and seldom achieved.
Local verses distance sales, what is best?
Your local market is really easy to keep your contact numbers up. The aim of marketing is consistent touch and those walking in the door are a breeze. You can relate to them by name and include them in your VIP club so that they feel important. More over they will read every thing you send them so it is an ideal market.
You must work these customers every time they walk in the door so that they enjoy coming to you.
I recently had a small problem at home with a gate falling off the hinges. I went to the local hardware chain where finding someone to ask, that understood what I wanted was near on impossible.
In frustration I went to the local private hardware store where I could talk to someone. He had an answer straight away and I walked out without spending any money but happy. They lost a sale but gained a customer as I have been back many times.
How to target the best client for great sales that are not in your area
Selling out of area
Distant sales are usually associated with online activity and these are the payback for all the time spent on websites or online store. Generally associated with someone wanting something you have so price and service are not discussed.
My daughter runs a clothing store with a good online presence. It is mostly targeted at a local audience. She carries several high end brands although mid range is more her thing. A recent inquiry for five dresses of a high end brand of certain sizes was made from nearly 6000 miles away. They were for the bridesmaids in a wedding party and stock was unavailable anywhere. A quick call to the wholesaler was made and the dresses drop shipped to the buyer.
Who is in your demographic.
I discussed this at some length recently because of the importance to your marketing.
Every social media channel has an age group following and targeting the wrong group will be wasting your time and money.
|Young set under 20 years old
|Predominant female 20-45
|35-55 years male and female
|over 50 years mostly female
Not exclusive numbers
I have been pretty general in the above and of course there will be overflow between groups.
Things change and so do your audiences however at this time I have provided a good example of the best media to use for your product.
When you are marketing you should always target the volume business, mostly male or female age and interest. You wont sell a Mercedes car on TikTok or a Brttteny album on Pinterest.
Your research is vital for best results.
How to target the best client for great sales with repeat sales
Repeat sales for current customers
When a customer buys a shovel from you to tend their garden you will guess that maybe some fertilizer may be a great accompaniment.
I have a BMW It is a fairly old model however I just purchased a maintenance package for the next couple of years. It was one of those too good to be true opportunities.
A month late they marketed me by email and SMS the opportunity to get 20% discount on any work that needed doing, for example brakes.
Now BMW are smart, my car has 60k on the clock and they have not done my brakes. They know they are due for changing and I will be looking for a deal.
I am a repeat customer and an easy target.
If a customer bought a new dress an email with appropriate shoes on ezypay would bring them back to the shop.
Use a multi media approach to your marketing
Above I said how BMW had targeted me. I also said that they had emailed me and sent an SMS message and both had a website link.
They were not happy trusting just one media they wanted to be sure they got my business.
I quoted this actual example because it reinforced my theory on Targeting.
I am one local buyer in the very big world of BMW yet my business is still important to them.
This is my third car from them over 20 odd years so they understand my buying habits and use appropriate resources to target me.
If it is good enough for one of the biggest car companies in the world surely we should follow by example.
Reward your good customers
Everyone wants to be liked, we all crave acceptance and small tokens of gratitude go along way.
You will have heard that “it is cheaper to keep a customer than gain a new one”. It is an ancient selling adage that applies as well today as it did one hundred years ago.
Grab your purse or wallet and count your store cards, those rewards cards that nearly every major business provides and pushes them every time you go to purchase. They do rewards because they work, they want repeat business over a long period of time and you coming back to them and not going to the enemy.
I have a Woolworth's shopping card. I am not the usual family weekly shopper but occasionally I will pop in to buy something. On a recent trip I stocked up on my favorite chocolate, ice creams and grabbed a pork rib roast that the boss wanted.
My store card now tells me when these items are on special to drag me back and increase my spending.
Again one of the biggest grocery chains in the western world thinks I am important enough to chase my business.
Are you doing this with your best customers and if not what is stopping you?
My conclusion on targeting
In conclusion this is the start of your marketing plan, who is your ideal client and what will they buy from you. Understanding this concept will go a long way to making sure you get a maximum return on effort.
It is a science and I have given you real life examples where the biggest companies take it right down to the smallest objective.
The internet has increased competition by a whole new dimension so you really need to understand the basics. Ignore them and your customers will go.
You wont sell a new frock to a bricklayer or a shiny trowel to a teenager, well not often anyway.
Map out your target and gather the best mediums to get their interest and hands on the credit card.
Finally the game has simple rules however they are rules that can not be ignored or you stand a great chance of losing your market.