3 Questions to Ask for a More Profitable New Year
1) Who is my target market and how have they changed during 2012? Understanding your target market is critical to the success of any business. Your target market is the group of individuals for whom your product or service solves a problem they are looking to solve. Identifying your target market is a crucial first step, but what is just as important is to recognize when your target market is changing. This group can naturally mature over time or they can be affected by outside forces such as the economy or a disruptive technology. For example, with one of my clients in IT, we found that the combination of their market maturing and economic pressures changed what IT managers want from a web development company. IT managers are looking for web development that provides business solutions rather than simply meeting their defined specifications. By refocusing how my client spoke to their potential customers and refining their proposals, this web development company was able to have better conversations with potential clients and dramatically increase the percentage of proposals they closed. 2) How can I get my best customers to buy more? While it can be exciting to find new customers and clients, the most cost effective way to increase your revenue is to make it easy for your existing customers to buy more from you. They already know and like you. a) Do they know about all of your products and services? Even if you think they do, it is always a good idea to remind them regularly. It is easy for them to forget. b) Is there a related product or service you could add that customers would want to purchase at the same time? This can increase the value of your transactions. c) What can customers or clients purchase after their first transaction with you? Is there a follow-on product or service you could offer? This increases the lifetime value of a customer. 3) How can I reach more potential customers in 2013? After you are clear on your target market and how to get your best customers to buy more, you should consider how you could reach more potential customers. If you can clearly define your target market, you can figure out which are the best ways to reach them. Whether it is choosing which networking events to attend, or whether social media is a good fit for you, now is a good time to assess how you are trying to reach potential customers and whether it is time to adjust your tactics. Direct mail is still a good way to reach some target markets. As more people are shifting to online marketing, direct mail is proving to be more effective, making it something to consider for 2013. Personally, I am looking to add more speaking engagements for 2013 as a way to get in front of more potential clients. How could you reach more potential customers in your target market? Any Questions? If you have any questions about how to use marketing to make 2013 more profitable for your business, please let me know. Contact us here or give me a call at 858-220-0202.