Do you ever ask yourself questions like:
- How effective is my marketing…….really?
- How do I ‘Target’ my marketing to be the most effective?
- Can I get more ‘bang for my buck’ for what I am spending?
Tough questions to answer in selling a future service like Disaster Restoration or Environmental Remediation services. Some potential customers may have a need but it could be weeks, or months or possibly even years away from happening. So what do we do?
First, lets look at two questions you should answer:
- What do people really want to buy from me?
- What related services are they already buying?
Once you figure this out you will know who is more likely to purchase your products/services. Then, consider finding other non-competing businesses with the same customer base who you can customer share with. Come up with an incentive and arrangement to cross-promote and encourage both of your customer bases to buy your services.
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 exceptional 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.
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