Many people might think in business that if you blanket market your product to everyone that you’re bound to hit more people who want to buy your product or service. But that’s not the case. We look at why it is a requirement to work out your target market and ONLY market to them; saving you time, money and hassle.
Wouldn’t it be great to get 10 qualified leads rather than 100 cold leads; surely? But how do you do this? We have come up with a few pointers to lead you in the right direction …
Who are your target market?
Looking at your current customers is where you will find this answer. You can determine so many things including;
- Company size … and so much more.
Here at Smart On Hold we worked out 7 niche businesses that are ideal on hold message clients for us, by determining who we already have as customers. We can then use this information to target them with specialised content for their specific market/industry.
Where do they look for products/services?
Determining who your target market is, should give you an idea on where they would look for your product – leading to which social media they may use, or what radio station they are mostly listening to: so that you can market there.
A generic example may be that if you were a recruitment business looking for new candidates to fill a position, you may be better off advertising on LinkedIn as that is a professional network, in comparison to Facebook which is usually used by people to socialise with friends in a less professional space. Although either may work, you need to determine where you’re best off placing your time and money into for you.
What is a client worth to your business?
Have you ever sat down and worked out what a client is worth to you? By working on the “lifetime value of a client” you can work out how much you should be able to spend in order to get a new one. Things to help work this out are: How long do you keep an average client AND how much is their purchase usually worth? Here is an example to show you how you should be looking at this …
Average lifetime of a client: 10 months.
Average spend of a client: $1000 ($100 per month)
So … How much can you now afford to get an average $1000 sale, I would say more than you think and probably more than you spend right now. If one client is actually worth $1000, then you can afford more than say $5 per lead to try and win their business. Think long term!
If you can combine all 3 of the above things: target market, target media to spread your message and amount per lead you are willing to spend, then you’re on your way to getting a better quality lead for your money.
If you want to get more information on how to assess your target market, take a look at some of our other blog posts about the market, media and message mix and watch out for more helpful business tips coming up.