Are You Investing In Attracting The Right Customer?
If you’re here because you want figure out how to get more of the right customers then you are in the right place and I can help.
Attracting the right customers and keeping them happy is important for your businesses growth because:
1. They’re probably more likely to stick with you, buy more of your stuff and recommend you to their friends
2. Churn can stunt your progress because it’s costly to have to continually attract new customers
So why aren’t you investing in attracting the right customers from the outset?
Adapt Your Ideas - So you’re building a really great company and have recognised the need to come up with a great ideas - based on the what your market demands - which translates to a great product or service to solve problems.
In that sense the good ‘ideas’ behind your brand can be the driver for your business’s growth especially if they’re aligned with the values and beliefs of your customers.
The ideas behind Method’s range of soaps and cleaners comes from a belief that cleaning products should be safe for people, pets and the planet. And Ecover, say that they ‘believe in protecting the planet with every product we make.’ And they’ve brought to life great ideas that have enabled the company to grow and build loyalty with its customers.
Assemble The Right Team - This one is dear to my heart considering I have been building and hiring marketing teams for the last 20 years or so. Having the right people can literally make or break your business's ability to grow. And you’ll ideally need to assemble a mission and values-aligned team so that the motivation goes beyond their remuneration. The team must have the ability to perform and excel in order to execute on business ideas as well as having the creativity to bring new ideas to the table that can drive the mission forward.
Articulate Your Mission - If want to build a connection with prospective customers try communicating your businesses higher purpose or philosophy. That’s because customers are more likely to be attracted to companies that stand for something.
The Corporate Executive Board surveyed 7,000 consumers across the U.S. and asked them why they had an affinity and strong relationships with their preferred brands. 64% of them cited shared values as the primary reason.
Of course, there are no guarantees in business but having a demonstrable higher purpose baked into your mission provides a credible basis for shared values and relationship-building.
Ecover’s mission to ‘pioneer clean’ resonates with anyone with a concern for the planet and they’ve built a thriving customer base despite the higher price point compared to the regular cleaning products.
Adapt And Execute Your Plans - You’ll agree that having some sort of plan helps you and your team to move towards your shared goals. You’ve validated your ideas and got to this point in your business so you’ve probably got all your ducks in a row and executing your plan.
But all good ideas need to be launched others they’ll remain ideas (and you’re likely to fall behind your competitors and brazen new businesses).
At the same time, consider that great execution towards a poor idea is likely to lead to frustration and struggle so if that’s the case you need to review your ideas etc...
Have you thought about what your ideal customer looks like?
It particularly important to understand your customers if your sector, products or services have evolved over a number of years.
Evolution is inevitable and In a world where the lines are blurring on offline and online activities, it’s necessary to pivot so that you capture your ideal customer at different points of their journey.
So ask yourself who you actually want to help or work with.
This will help you further down the line to have a better understanding of a number of aspects of your business, not least setting up your marketing and sales campaigns so that they’re as effective as possible.
Working on visualising and creating your customer avatars that describe who they are, what they look like, their passions and goals.
I remember creating visuals and giving names to my avatars because I find that it brought my customer to life and enabled me to remain focussed on their needs.
Turning leads into the right customers can be expensive because if you don’t do your research beforehand you might end up fishing in the wrong pond.
Set aside a few hours to get the information you need so that your recon translates to more accurate customer targeting.
And it’s worth observing your competitors online advertising activities are in order to gauge where you might start to seek out your prospective customers.
In some cases it will be possible to work out where your ideal customer might be online.
Do they they have a penchant for liking certain Facebook pages?
Are they using long-tail keywords to search for your products or services on Google? Which brands and influencers do they follow on Instagram and gernerally pepaking on a regular basis to share information related their business?
It’s likely that website visitors know little or nothing about your business. So If you’re trying to convert them into customers you’ll need to provide an ‘opening offer’ or ‘bait’ that helps to solve the problems and needs of your target customer.
Bait usually takes the form of digital or hardcopy products including vouchers, eBooks, physical books, video or audio solutions.
For example a gym might offer a free introductory tour, a restaurant might offer a ‘kids eat free’ special or a Dentist might provide an offer on teeth cleaning .
Creating effective bait requires detailed market research.
You should invest a considerable amount of time, thought and effort into preparing something that appeals to your ideal customer.
Pay attention to customer feedback and distribute surveys (combined with research) to gain a thorough understanding of their problems, needs and expectations.
The answer to this question goes beyond your product or service instead think a) about where you want to take your customers b) the problems you alleviate and c) the result that you provide so that you can serve them at the highest level.
For me I want to serve my dream clients by deploying my team of lead gen and marketing experts to sort out their sales funnel and help them generate a regular and sustainable source of leads. As well as sort out their SEO and content.
I know what it’s like waiting for the phone to ring and I’ve experienced the uncertainty (and cash flow issues) that a dwindling pipeline of customers can bring.
On the other hand I know how frustrating and exhausting it is to work with the wrong customers. And those peaks and troughs can be so stressful, I know!
In a nutshell it’s my job to help you to find the right type of customers so that your business can grow.
How do you serve your customers at the highest possible level and what result do you want to give them?
Attracting visitors, getting leads and gaining paying customers - that you can serve at the highest level possible - is a challenge because they know very little about you and your business.
That’s why it’s imperative to use a step-by-step to approach to introduce your products or services to your potential customers and focus on creating helpful information or content so that they can familiarise themselves with your brand.
This step-by-step process is a concept called the Value Ladder and it’s the first thing to work on before you begin to build out your sales funnel for your online sales process.
Each business has a unique Value Ladder but here’s how it works...
A dental practice might attract a pool of prospective customers by giving them the opportunity to sign up for an affordable and necessary teeth cleaning offer (The Bait).
Once the prospect has experienced the service, received great value and customer service (via the teeth cleaning offer) they’re probably more likely to be open to investing in the next level of service which might be teeth whitening.
The next step could be some sort of continuity plan or at the very least, regular check ups to sort out other issues.
The Value Ladder works because it lowers the barrier to getting that first ‘yes’. And you’ll agree that the first ‘yes’ is infinitely harder to get vs. the second ‘yes’ given the customer doesn't know, like, or trust you.
This was the case when I was first introduced to the idea Chiropractic care. I was really on the fence about having a stranger - whose profession I knew next to nothing about - manipulate my back.
I didn't know if it would make a difference.
I really had no idea what it was all about.
Fortunately I worked with a conscientious guy who had an informative website that introduced me to Chiropractic via a value-packed entry level package which put me at ease.
By the time I got to his practice I was in-the-know and had seen the effect he’d had on the lives of others. I remember the moment right after he adjusted my back, I felt alive again.
It was in that moment that I saw the value of investing in long-term care to get rid of the pain I had been carrying around for months.
Think about what your opening offer and value ladder might look like so that you can capture the contact details of your ideal customers and create a great entry point to your sales funnel.
Plan your value ladder and determine which product/service to offer visitors so that they logically and seamlessly move through your sales funnel from your ‘Bait’ to your front end offer and to your high value products or services.
Keep in mind the end result that you want to provide and avoid the hard sell approach.
Take your prospective customer on a value-packed journey that helps and educates them at different phases of their need and growth.
That way you can build the level of trust needed for them to become a regular customer or part of a continuity programme.
Be patient and plan sustained communication over time so you can upsell increasingly more sophisticated products/services or packages.
What If I ‘Can’t’ Put Together A Value Ladder?
Now you may be thinking that the value ladder cannot work for your business and it is true that this method of structuring your sales process is more suited to businesses with information products.
But the truth is that the system is currently being employed by million dollar product and service businesses throughout the world.
It is possible to use this process if you have an ecommerce store, high street shop, professional services business, restaurant, florist, condiments business etc etc. It just takes a little more thought and creativity to put together ideas.
And that’s where I can help you so that you can begin to focus on targeting and retaining the right people for your business.
Retention is the percentage of customers who came back to use your services over a specific time period.
You should always pay attention to how you can improve customer retention. Especially now that your sales funnel is in place and helping you to acquire ideal customers.
Why? Because acquiring a new customer is 5 to 25 times more expensive than retaining an existing one.
If you’re focused on boosting your bottom line an increase in retention of just 5% can lead to an increase in profits by approximately 75% (Bain & Co).
So why aren’t you paying more attention to your current customers’ needs by proactively collecting feedback, talking to them on the phone, via email, surveys and your social media channels etc?
Are there any areas of weakness within your business that you and your team could work on to satisfy your existing customers?
Do you know why some customers leave and sign on with your competitors? And are you delivering on your mission? If not, then you’re likely to experience defections.
Alex Schultz (VP Growth, Facebook.com) said that “retention is the single most important thing to growth”. You can use this formula to calculate it:
Then have a look at the blue curve below.
Schultz says that “if you end up with a retention curve that is asymptotic to a line parallel to the X-axis, you have a viable business and you have product market fit for some subset of market”
Each business sector will have their own optimum retention rate and if the numbers are going in the wrong direction, it can indicate issues that you need to address.
The red line shows ‘number of users’ who have been using a product for a certain number of days, in this case there have been users who’ve been active at least one day.
“But” (says Schultz) “if your product has been around for a year, you’ll have zero users who have been on it for 366 days.”
The next step is to look for all users who have been interacting with/using your product for one day and work out…
“What percentage of them are monthly active? 100% for the first 30 days obviously.
But then you look at every single user on their 31st day after registration, what percentage of them are monthly active?
[and then look at] 32nd, 33rd and 34th day [etc etc]. And that allows you, with only 10,000 customers, to get a real idea of what this curve is going to look like for your product.”
Your business has come this far so chances are that you’ve got good product market fit but have you got a handle on how well your products services are performing?
Mastering the art of acquiring the right customers and retaining your existing ones, is invaluable to your business growth.
Have a go at working out your retention rate and plotting the results so that you can see which direction your curve is going in.
Is your retention rate on the up if so, how can you acquire more of the right type of customers for your business to continually grow?
And if you’ve got defectors, what steps can you take to arrest the decline?