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How To Double The Response Rate From Your Advertising

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Posted 24th September 2013 at 11:49 PM by jimmyjackson

A 3 Step Action Plan For Small Businesses


How to Define your Ideal Customer


What is your ideal customer I hear you ask? Isn’t any customer a good customer? Not exactly…

Now if you’ve read any business books in the few years, chances are you’ve been exposed to the 80/20 rule… but just in case you haven’t heard about this universal law of productivity, I’ll explain it to you briefly.

The law of 80/20 dictates that 80% of your results come from 20% of your efforts.

• 20% of customers drive 80% of your profits
• 80% of sales come from 20% of your products
• 80% of your value is delivered in 20% of your time

How is this possible?

Well if you think about your own business, I’m sure you’ll have a small portion of customers who are big spenders, create little hassle for you and buy from you time and time again – these are the 20%

• To sum that up, your ideal customer is the one who buys from you the most regularly, has the highest average spend and creates the least amount of fuss!

Then you have those the 80%. They don’t spend much, if at all, they take up a lot of your time and you and make very little profit from them in return.

What this means for you is – your marketing should be LASER-focused on the 20% that generate 80% of the results!

Your First Action Step


Now it’s time for your first action step!

IMPORTANT: To get the most value out of this program it’s important that you grab a pen and get this exercise done now BEFORE you keep reading!


1. Figure out which 20% of your customers are currently responsible for 80% of your results. Write down the names or company names if you can.

2. Take a look at these customers and write down all the things that they have in common – age, gender, industry, location, job, income, interests, values, style, single or married, buying habits, average spend etc. The more information you can gather here the more accurately we’re going to be able to laser target more of these customer later, so take your time and be thorough. You can start by doing this on an individual basis and then look for commonalities afterwards.

3. Looking at the information you just gathered about your ideal customer, make a one sentence summary that most clearly defines your perfect customer.

Eg. For a retailer of high end visual audio equipment it might look something like this.

“My ideal customer is single males between the ages of 27 – 45 who earn over $75,000, are into the technology and value keeping up with the latest trends.”

Find Out What They Need
(Not what they want)

…But wait a minute. Isn’t the customer always right? To a degree yes, but you being the expert in your field it is your responsibility to find out if what they’re asking for IS actually what they need.

Once you understand this, your customer will start to see you as the expert in your field and is more likely to allow you to guide them to a solution that is right for them!

Let me give you an example from my previous business as the owner/operator of a high rise cleaning company:

Often I would get called out to quote for a potential client who told me that they wanted to get their windows cleaned. Now I could just write them out a quote for what they asked for; OR I could delve a little deeper into their motivation for wanting their windows cleaned in the first place.

With a few simple questions I was able to ascertain holiday season was coming up so they wanted their windows to look nice for the coming influx of holiday makers; reading between the lines it’s easy to see that they want to make a good first impression on all the people coming to stay.

NOW, with this information in hand I could explain to them that “yes, it’s very important to have your windows cleaned before the holidays… after all they aren’t coming here to enjoy the million dollar views that you have to offer aren’t they? But since holidaymakers also spend a lot of time out on your balconies enjoying this view it might be in your interest to also get a thorough pressure clean done while we’re here. This will not only drastically improve the look and feel of your building, but will also keep your windows clean for longer as the dirt from your building won’t run off onto your windows!”

WOW, we didn’t think of that!

By finding out what they really wanted, I’ve help them achieve their goal of making a good impression more thoroughly and I’ve turned a $2000 window cleaning sale into a $7500 pressure cleaning job!

Everyone wins!

This simple understanding helped us revolutionize our marketing and helped us to raise our pricing as we understood our clients problems better than they did.

We weren’t there to clean windows, we were there to create million dollar views and lasting positive memories about the building holidaymakers were staying in!

We took every opportunity to convey our message in all form of advertising, which in turn helped us stand out from the crowd of other suppliers who are merely listing their services.



Your Second Action Step


Now it’s time for your second action step!

AGAIN: To get the most value out of this program it’s important that you grab a pen and get this exercise done now BEFORE you keep reading! This is all about action people!


1. Make a list of all the services or the major products that you offer.

2. With your ideal customer in mind, brainstorm some ideas about what that customer really wants beyond just the direct result of your service.

Hint: Starting from the outcome of your service, keep asking “why” until you get to the core of why they want this in the first place.

Eg: Bob wants a new kitchen. “why” because his old one is outdated, so he wants something more modern. “why” because he wants to impress dates when he invites them over for dinner… I think you understand where I’m coming from!


Write a Compelling Offer!

Great. Now you know what really motivates your ideal customer to want to do business with you!

It’s time to create a compelling offer that will make you stand out from the crowd and ensure you don’t get lost in the sea of “me too” businesses!

A compelling offer will:

1. Communicate that you understand your customers concerns, what keeps them up at night when they ponder which provider they use for the job and how you are going to satisfy their needs in a way that nobody else is willing or able to do.

2. Has a special or limited time offer. This will help turn the browsers into buyers if they feel like they may miss out if they don’t pick up the phone and call you today.

3. A call to action! This is THE most important part of your ad is still often overlooked by many people when creating an ad. It is the single thing that will make the biggest change in the conversions of your ad. This maybe as simple “call now”. Any call to action is better than none!

Conclusion

I hope this has been an eye opener for you and that your head is now spinning with new ideas about how you can approach and engage your customers in a way that will drive your response through the roof!

REMEMBER: There’s no better way to measure the success of your marketing than, MEASURING THE SUCCESS OF YOUR MARKETING!

What do I mean by this? I am often surprised by how many people don’t actually know the success rate of their advertising. They may have an ad in the yellow pages, an ad in the weekly newspaper and a website and they don’t take the time to track which of these methods is generating results and which ones aren’t!

Remember the 80/20 rule? One of your methods is highly likely to be outperforming the others! Ask customers how they heard about you and keep a tally of which of your marketing efforts are driving customers to your business.

Once you find the one that’s outperforming the others; DO MORE OF THIS!

Digital advertising allows you to get statistical results on your marketing in as little as a week or a day. You’d be surprised at the difference that something as small as changing the headline can make, sometimes as much as doubling the results. Most people never test and experiment with their ads, so they’re literally leaving up to 50% of their results on the table.

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Stay tuned for the next post on how to split test and refine your ads to skyrocket their success.
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