As a small business owner, you may be feeling the pinch today and worrying about planning for tomorrow. Most likely, you are questioning whether to scale back your existing marketing plans or do away with them altogether.
The answer is neither!
Uncertain economic times provide the perfect opportunity for you to take stock of your existing customer base and to leverage those relationships in order to weather the downturn - and stay competitive in the future. Now is the time to assess the fundamentals that drive your business: knowing your existing customers; acquiring new customers; connecting with customers in meaningful ways and delivering the right solutions to meet customers' needs.
Now and in the coming months we're going to cover these topics and help you create an actionable, effective marketing plan that will help you survive - and thrive - in today's uncertain economic climate.
Understanding Your Customers
Your existing customers are your most precious asset, even more so during challenging economic times. These customers not only provide your most immediate revenue-generating opportunities, they are also a gateway to new business. By understanding your customers better, you can make your business more attractive to both existing and new customers and be positioned to successfully market through the economic storm.
Here are two steps to help you learn more about your customers:
Profile Your Customers
You can get to "know" your customers better by creating a profile of their characteristics, buying habits and interest. For example:
- What are the characteristic of your best customers? How old are they? Are they male or female? How close do they live or work to your business? What is their income? How often do they buy? What is their purchase behavior?
- Why do your customers choose you over the competition?
- Which customers are most likely to refer you to prospective customers?
- What preferences and interest have your customers noted in their conversations?
Segment Your Customers
Use the information you've gathered from your customers profile to segment your existing customers into groups with similar characteristics. Segmenting your customers this way will help you identify those customers with the greatest potential for generating revenues and/or for referring new business. It will also help you prioritize the most effective ways to market to each customer group. Possible customer segments include:
- Personal characteristics such as gender, age, income level or special interests
- Buying habits, such as types of purchases and frequency
Next month I'll take a look at understanding your marketing effectiveness and what you have to offer. Until then, please feel free to comment on the topics I covered here and add your thoughts. I'll share them in the next issue. You may contact me at dan@hotmetalgraphics.com.
