Want to exponentially increase your revenue? Get to know and understand who your ideal customers are, and you can write your own revenue ticket.
Every small business owner wants to build a successful and lucrative business.But in order to be successful you must be able to clearly identify your target customer.
IDENTIFY THEIR PHYSICAL CHARACTERISTICS
Sometimes referred to as a demographic profile, you must have a clear picture in your mind of what your target customer looks like from a physical standpoint. In the future, this information will help you to pinpoint your target customer once you begin marketing to them, making it easier to find them and position your marketing message in front of them.
BENEFITS OF CLEARLY IDENTIFYING YOUR TARGET MARKET
- Shares Your Passion Your target customer is the customer who shares your passion for your product or service. These are customers who want what you offer… instead of just need what you offer. They don’t just use your product or service, they love it. They don’t just purchase what you sell; they actually feel they couldn’t live without it.
- Fewer Returns and Complaints Your target customer will result in fewer returns and complaints. They’re thrilled with you and your business. They buy from you today, and they’ll keep buying from you tomorrow. They’ll demand you create additional products and services for them to buy… since they trust you and know you have their best interests at heart. They’ll tell their friends and family all about you and encourage them to do business with you. And maybe best of all, they’ll spend more money with you over their lifetime than your average customer will.
- Tons of Referrals … and they’ll offer you unsolicited testimonials. They’ll post their praise about you and your business on social networking sites… which garners you free publicity. When you identify your target customer, you’ll find yourself loving what you do. The end result is you begin to work less and start earning more—a lot more.
LONG TERM IMPACTS
- All future products or services you develop.
- The customer service your client’s receive.
- All of your marketing and sales efforts, especially when you begin to develop your marketing materials and sales scripts.
Obviously knowing and understanding exactly who your target customer is plays a vital role in building a successful business. But let me explain an additional component your target customer provides that can make you wealthy… WITHOUT doing anything more than what you’re already doing.
You’re probably familiar with the 80/20 rule. It says that small actions lead to big results. For example, count the number of clothes you have hanging in your closet. Then count the number of clothing items you frequently wear. You will discover you wear about 20% of your clothes 80% of the time. Your business functions in much the same way.
Approximately 20% of your customers account for approximately 80% of your business’ total revenue. That 20% of your customers are your target customers. Imagine the possibilities for your business if you could attract more customers just like them.
But wait. What if you could alter that ratio and attract 40% of your target customers instead of 20%? That would mean your revenues would double. Now do you understand how knowing exactly who your target customer is can have such a dramatic impact on your business?
In fact, if you could attract 100% of your target customers, your revenue would explode by a factor of sixteen. If you’re making $2,000 per month right now, just replacing your current customers with target customers would increase your monthly revenue to $32,000.
And best of all, these target customers don’t require any additional time, effort or energy on your part. Again, this is how you stop working harder and start working smarter. This is how you make more money while working fewer hours. And it all starts by clearly identifying your target customer.
That’s the power of the 80 / 20 rule. Unfortunately, most small business owners today are only attracting on average about 20% of their target customers, even though these are the customers that are the most profitable to their business. So how do you go about attracting those target customers? That’s what this series of posts is all about.
You must have the proper fundamentals in place to make this work right.
- You must start by identifying the physical makeup of your target customer.
- Then you must identify what it is they want… and if you discover that either your business doesn’t offer them what they want, or you offer a solution but it’s the exact same solution as your competitors offer, then you must innovate your business so you offer your customers the most value when compared to your competition.
Do this, and you will explode your revenue and profits to new heights… WITHOUT adding any additional time or effort. But to me, here’s the really exciting part about the 80 / 20 rule.
To get 16 times better results than what you’re getting right now, you don’t have to do anything different than what you’re already doing. You just do MORE of what you’re already doing that’s working fantastically well. Figure out why your current 20% of your target customers are buying from you… and start attracting more of them by creating and developing compelling marketing.
But that’s the problem isn’t it? Most small business owners don’t have a clue how to create compelling marketing. That’s OK… over the next several weeks we’re going to help you do exactly that. We’re going to reveal to you the marketing secrets used by the pros, and in the process, position you and your business as the only logical choice for your customers to buy from.
Hop on over to facebook to view the Facebook Live on March 8th on this topic.