Key's To Knowing Your Customers
"Why is it so important to know your customer?" The short
answer to this question: you really can't generate profitable
leads if you don't know what you're looking for. In my last
article (USPs: Your Key to Selling Success), I briefly mentioned
that the idea of hoping everyone is a potential customer is not
the most profitable way to run a business.
In this article I'll explain how a lead generation system
allows you to collect only those leads that provide you with the
kind of customers that will maximize your profits.
Lead generation vs. conventional prospecting
A lead generation system is the other side of the prospecting
coin. There are essentially two ways to attract potential
customers: you can either push them toward you or pull them
toward you.
Pushing is equivalent to prospecting, or doing it the hard way.
Prospecting is inefficient because you inevitably expend a lot
of effort talking to people who rarely become customers.
I recommend pulling the potential customers to you using a lead
generation system. Using a lead generation system eliminates the
worry about where your next customer is coming from. By
definition, this system automatically provides you with a steady
stream of highly motivated potential customers. A lead
generation system also provides precise control over how you
spend your time selling and the type of person you're selling
to.
If your job is to sell, you'll be spending more time with
qualified leads that are prepared to make a decision. If you
operate a small shop and would like to spend more time in the
shop, not the office, a lead generation system will provide that
time.
Developing your lead generation system
The first step in developing a lead generation system is to
define your "perfect" customer. Defining the perfect customer
requires that you establish the type of jobs you
prefer--generally, those that provide the greatest revenue in
the shortest time. It helps to carefully study as many completed
jobs as you can.
Organize the income data by job or sale type. Then carefully
start piecing together an accurate picture of what these prize
customers look like. How they act, what they do, who they know,
and so on. Figures 1 and 2 contain the specific facts you're
looking for.
Figure 1. Statistics and Dynamics for Consumers
Location Age Education Occupation Income Marital status Family
size Hobbies Travel Sports Interests Brand loyalty Automobile
Size and style of home Where shop Entertainment preferences
Figure 2. Statistics and Dynamics for Business, Industrial, and
Professional Contacts
Location(s)
Size by revenue or number of employees Market share Hierarchy of
purchasing authority Type of product or service How distributed
Trade association memberships
Yes, it's going to be a difficult task. Yes, it will take a lot
of time. It should involve interviewing or surveying customers
individually. Offer them a gift for their time if necessary.
You need to become a private investigator of sorts. If you're
doing retail installations on site and see that your
particularly profitable jobs come from homes with children, make
a note of that. If you're a wholesaler of lumber and notice you
sell more high-margin material to small, rural cabinet shops,
use that data. To effectively increase sales for your business,
you must have this type of information.
Your ultimate goal is to find out what common elements exist
among these customers, and develop an "ideal customer profile."
For a lead generation system to work properly, this profile
should equal at least three or four paragraphs of written copy.
Writing the lead generation ad:
With a "picture" of your ideal customer in mind, you can now
create the lead generation device.
Usually it will be a small space advertisement, but other
possibilities include a classified ad, radio spot, card deck
mailer, etc. Writing the ad is easy--simply direct it precisely
to whom you wish to speak.
Some great examples of lead generation ads can be found in the
personals section (yes, the dating advertisements) of any
newspaper. These can provide great models for a short,
to-the-point ad that attracts only your target audience. You,
the advertiser, control the entire process.
The lead generation ad can be small in size and minimal in copy.
But it must make a big promise to the intended reader and
include very specific instructions on how to respond. The most
successful lead generation ads contain one or more of the
following:
A statement of great benefit, possibly your Unique Selling
Proposition (USP) [[[LINK GOES HERE]]](for more on USPs see my
previous article
An offer of a free bonus with purchase
An offer of a free gift for inquiring
A promise of a free recorded message to obtain additional
information The ad absolutely must be exciting and worthwhile to
read. The following is an example of an almost "foolproof" lead
generation ad:
Award-winning custom woodworking firm has available FREE report
on "7 Little-Known Ways to Save Money When Remodeling." If
you're remodeling your kitchen within the next 90 days and plan
on spending between 10 and 15 thousand dollars, call 555-5555
for your FREE report.
This little ad determines that your respondents will be ready to
do business in the near future. Only readers interested in
kitchen-oriented jobs of the size you've defined will respond.
This text is suitable to be used in a small display ad,
classified, postcard, card deck, or piggy-backed on the
noncompetitive mailing of another business.
What do I do with the leads I've collected? You need to follow
up on the leads you've collected in a timely manner. Don't miss
your chance by waiting too long. Make sure that your promises
are kept.
The consumer expects the world--show a great deal of care in
processing your leads. The same goes for business-to-business
sales. After all, businesses don't buy anything--people do.
Don't forget how beneficial repetitive follow-up can be. In this
age of database programs and laser printers, there is no excuse
for not maintaining a mailing list. Make the most of it by
regularly sending out interesting, exciting offers to those who
have expressed interest in your product or service.
Copyright 2001