How to Find Your Target Market
How to find your target market …
Today you’re going to learn how to find your target market of potential customers so you aren’t wasting precious time, energy and money on general, broad or blitz marketing. So, the main questions you must ask yourself (and your target market) are:
- What problem do they want help solving?
- What will help them the most?
- What do people really want to buy from me?
- What related products are they already buying?
- What is missing in these products or services that make it so their problem persists?
- How can I make my products or services better and solve the problem once and for all?
Once you figure out how to find your target market, you will know who is more predisposed to purchase your products/services. Then, you find other businesses with the same customer base who you can customer share with. Come up with an incentive and great arrangement to encourage both of your customer bases to shop at both of your stores.
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 great 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 lifetime valuation 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.
- Reach out to them with the intention of creating a win-win relationship.
- 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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If you have any questions or comments, please feel free to comment below. Hope this article on how to find your ideal target market was very helpful.