1. Identifying, Targeting& Attracting YourPerfect Customers A Presentation to The CircuitsConsumer Product Circle January 26, 2011

2. Why You Are Here Today Your ability to clearly define and focus in on the customers who can most rapidly buy your product or service will be essential to your business success. - Brian Tracy --------------------------------------------------------------------------------- Most entrepreneurs arent clear about their ideal customer. For this reason, they waste a lot of time and money trying to sell their product to people who arent good potential customers. - Brian Tracy 1 3. Why I Am Here Today: To Help Save You . . .Lots of Time! Lots of Money! 2 4. Can We Agree . . . ? Your ability to find a customer, sell to that customer, and satisfy that customer so that he/she buys from you again should be the central focus of all your entrepreneurial activity. The greater clarity you have about your perfect customer, the more effective your marketing efforts will be. The most important activity is to identify the very best customers for your product, and then focus all marketing, advertising/promotion, and sales efforts on this particular type of customer. 3 5. Identifying Your Perfect Customer What is involved? Define your product from your perfect customers perspective Define your perfect customer for the product you sell Determine the benefits your perfect customer is seeking in buying your product Determine the location (where) of your perfect customer Determine the timing (when) your perfect customer buys your product Determine your perfect customers buying strategy 4 6. Your Perfect Customer Identity Benefits Focus Its primarily about product benefits, NOT features Entrepreneurs typically sell on product features. Customers usually buy on product benefits. Ask yourself: What does your product do for your ideal customer? What problems does your product solve? What customer needs does your product satisfy? How does your product improve your customers life/work? ------------------------------------------------------------------------------------------------------------------------------------------------------------------- THINK from the customers perspective - THINK product benefits!5 7. Your Perfect Customer Identity Profiling Mentally profile who might be your perfect customer Ask yourself: What is his/her age, education level, occupation, etc.? What is his/her income level or financial situation? What is his/her situation today in life/work? How might he/she behave? What might he/she do? ------------------------------------------------------------------------------------------------------------------------------------------------------------------- Begin to THINK about your perfect customer as an individual and considering your product very carefully personify that imaginary perfect customer, both demographically and behaviorally.6 8. Your Perfect Customer Identity USP Lets get more specific on product benefits Ask yourself: Which benefit is most important to your perfect customer? What is the most pressing need your product addresses for your perfect customer? Why should your perfect customer buy from you, rather than from a competitor? ------------------------------------------------------------------------------------------------------------------------------------------------------------------- THINK about how you are going to sell to your perfect customer, in terms of the specific benefit to highlight and help differentiate from the competition (unique selling proposition). 7 9. Your Perfect Customer Identity LocationLocation - Where are they when they buy your product?Ask yourself: Where is your perfect customer geographically? Where does your customer live/work? Where is your perfect customer when he/she buys yourproduct? On the phone? In a store? Online?-------------------------------------------------------------------------------------------------------------------------------------------------------------------THINK about how your perfect customer is going to buy yourproduct. Where do you have to sell it so it is available tothem? What channels of distribution will you use to reachthem and make your product available to buy?8 10. Your Perfect Customer Identity TimingTiming When are they ready to buy your product? Ask yourself: What has to happen in their lives or work for him/her to buyyour product? Is there a life event that triggers the need? What time of year or season does your perfect customer buyyour product? What other occasions or reasons prompt thebuying decision?-------------------------------------------------------------------------------------------------------------------------------------------------------------------THINK about how your perfect customer is going to buy yourproduct. Is it situational/occasion-based or seasonal?9 11. Your Perfect Customer Identity Buying StrategyBuying Strategy How do they decide to buy product? Ask yourself: How does your perfect customer decide to buy, or not buy,your product? Has he/she bought similar products in the past, or not? How does your perfect customer go about making a buyingdecision regarding your product?-------------------------------------------------------------------------------------------------------------------------------------------------------------------THINK about your perfect customers likely decision makingprocess regarding your product. 10 12. Targeting Your Perfect Customer (Niche = Target)Now we are further refining your perfect customer byfocusing on a niche market. So, what is involved toidentify the right niche for your product? Unique needs: Members have similar needs, but needsthat are unique to the rest of the market Product is a better fit: Your product meets their needs betterthan what the competition offers ROI: You can economically market to this group Group size: Large enough group to generate enoughrevenue to remain profitable Opportunity: Members are not targeted, or ineffectively so11 13. Your Perfect Customer Target Unique NeedsNiche has unique needs from the rest of the market These unique needs should be relevant to your product andindustry Geography can also play a role since market segments canvary dramatically even within an industry ------------------------------------------------------------------------------------------------------------------------------------------------------------------- THINK about your industry - Can you isolate a group that has unique needs that are relevant to your product?12 14. Your Perfect Customer Target Better Product Fit Your product better meets the need than the competition Your product must be more attractive in some way than other products available to customers Simply offering a compelling reason to meet a special need might work, and may be related to some aspect of your business rather than something product specific ------------------------------------------------------------------------------------------------------------------------------------------------------------------- THINK about how your product or your business overall - can better meet a certain groups needs13 15. Your Perfect Customer Target Better ROIYou can market more economically To obtain a decent ROI on a modest budget, the niche mustbe easy to identify and reach for your marketing efforts The key is often to find ways to narrow your marketingefforts to seek qualified prospects-------------------------------------------------------------------------------------------------------------------------------------------------------------------THINK about how easy or difficult it is to identify and reachthe niche market and how to qualify prospects economically 14 16. Your Perfect Customer Target Group SizeThe niche is large enough to remain profitable You must have a niche that will allow you to have asustainable business over time It must make sense financially for your business-------------------------------------------------------------------------------------------------------------------------------------------------------------------THINK about the likely size of the niche market to beassured that it is financially viable to pursue long-term 15 17. Your Perfect Customer Target Opportunity The niche is not being targeted, or ineffectively targeted The best niche market for your product is one in which no competitor is targeting, or no competitor is targeting effectively ------------------------------------------------------------------------------------------------------------------------------------------------------------------- THINK about the overlooked niche, not the obvious one, to find the potential opportunity for your product16 18. Attracting Your Perfect Customer* (Thoughts)What is involved to attract your perfect customer?Both mental (thoughts) and physical (actions)Understand the Law of Attraction and its application tobring perfect customers who value your product, furtherrefining who was identified and targeted earlier. Be on purpose with your company mission You have the power to attract the customer you desire Like attracts like: So, who do you like? Choose collaboration, not competition Your customers (and employees) want you to succeed Create a business atmosphere of accomplishment* From Attracting Perfect Customers: The Power of Strategic Synchronicity, byStacey Hall and Jan Brogniez17 19. Your Perfect Customer Attracted MissionBe on purpose with your company mission* Become clear about whom the business is meant to serve Hire only people who are truly aligned with the mission All products, practices and structures are also aligned Trusting money is a natural by-product of staying on mission-------------------------------------------------------------------------------------------------------------------------------------------------------------------A business that stays true to its mission is an attractivebusiness.* From Attracting Perfect Customers: The Power of Strategic Synchronicity, byStacey Hall and Jan Brogniez 18 20. Your Perfect Customer Attracted PowerYou have the power to attract the customer you desire* If you can envision it, you can manifest it We all have a natural ability to attract-------------------------------------------------------------------------------------------------------------------------------------------------------------------Realize you have the power within you to make the perfectcustomer you envision a reality through attraction* From Attracting Perfect Customers: The Power of Strategic Synchronicity, byStacey Hall and Jan Brogniez 19 21. Your Perfect Customer Attracted LikingLike attracts like: Whom do you like?* The principle of reciprocity applies Confidence attracts confident customers When we value our business, potential customers will also-------------------------------------------------------------------------------------------------------------------------------------------------------------------Believe in yourself as an entrepreneur and business ownerand others will believe it you as well* From Attracting Perfect Customers: The Power of Strategic Synchronicity, byStacey Hall and Jan Brogniez 20 22. Your Perfect Customer Attracted CollaborationChoose collaboration, not competition* Have an abundance mentality and a giving attitude Have the perspective of collaboration The idea of a perfect fit perfect customer + perfect provider The power of two or more (whole greater than the sum ofits parts)-------------------------------------------------------------------------------------------------------------------------------------------------------------------Focus on what is possible in working together, realizing thereare opportunities for everyone, and that no one is a perfectprovider* From Attracting Perfect Customers: The Power of Strategic Synchronicity, byStacey Hall and Jan Brogniez 21 23. Your Perfect Customer Attracted SupportYour customers (and employees) want you to succeed* Others are working with you not against you Discounts and special offers typically do not bring youperfect customers-------------------------------------------------------------------------------------------------------------------------------------------------------------------Perfect customers you attract will want to support you andyour efforts* From Attracting Perfect Customers: The Power of Strategic Synchronicity, byStacey Hall and Jan Brogniez 22 24. Your Perfect Customer Attracted Atmosphere Create an atmosphere of accomplishment* Be grateful in your interactions Share your gratitude with others Emanate a sense of your accomplishments ------------------------------------------------------------------------------------------------------------------------------------------------------------------- Those who are confident in their efforts, grateful to others, and emanate accomplishment are more likely to attract perfect customers * From Attracting Perfect Customers: The Power of Strategic Synchronicity, by Stacey Hall and Jan Brogniez23 25. Attracting Your Perfect Customer (Actions) What is involved to attract your perfect customer? Both mental (thoughts) and physical (actions)What are some more practical ideas can we apply toattracting perfect customers? Branding your business Creating competitive advantage (USP on steroids)24 26. Branding Your Business Defining Your Brand Think of your business as a brand: What does that mean? It is a promise that you make about what your business will deliver to the market It should be something unique and meaningful (and distinct to your business) It could be something tangible or intangible It must be something that your prospects and customers can expect to derive or experience by engaging with your brand 25 27. Branding Your Business Purpose & Promise What is the brands purpose and promise? Brand Purpose is a concise explanation of why your brand exists in the market Brand Promise is the unique benefit derived by engaging with the brand 26 28. Branding Your Business Proof & Personality What is the brands proof and personality? Brand Proof are the reasons to believe the brands unique promise Brand Personality is the distinguishing characteristics of the brand identifying what your brand is and what your brand is not 27 29. Branding Your Business CommunicationHow do you communicate the branding effectively? It is typically necessary to develop a visual brand identity(name, logo, tagline, etc.) Using the results of the branding exercise, identify the brandmessage you wish to convey to your perfect customer thatwill resonate with them Develop brand standards for your marketing and salesmaterials to support your branding efforts You must communicate your brand consistently, in everythingyou do, and do so in a clear and compelling way 28 30. Creating Competitive Advantage*: What is RequiredCompetitive advantages MUST: Mean something positive to customers Play an important role in their buying decisions Be quantifiable and tied to the bottom line But above all, they must be true* From Creating Competitive Advantage, by Jaynie Smith 29 31. Creating Competitive Advantage*:The Customer Knowledge Disconnect We use imprecise, vague language that our customersdont notice, believe or understand We claim a competitive advantage that we dontconsistently deliver We stress advantages that arent that important to ourcustomers We fail to stress specific advantages for each of our targetmarkets individually* From Creating Competitive Advantage, by Jaynie Smith 30 32. Inexpensive Ways To Identify, Target & AttractPerfect Customers Complete the exercises! Ask Susan and me for assistance! Conduct secondary research on your industry and product Discuss it with employees, if applicable Vet it with business advisorsGaining different perspectives and input is crucial!31 33. Customer Research: The Research Value Disconnect Entrepreneurs generally think they know their customersso well that customer research is unnecessary onereason many of them fail, unfortunately Relationship customers will not tell you the truth when it isbad news; they will lie rather than upset you (toouncomfortable) When pressed, they will nearly always tell you the reasonis price-driven well, congratulations, you have nowbecome a commodity!32 34. Customer Research: The Benefits Customer research identifies what customers want andwhether or not your business is meeting their needs: anessential activity to ensure long-term business success If you do NOT have customer research in place, considermaking it happen: the return on investment quicklyovershadows the cost Identification and full evaluation of your businessscompetitive advantages: uncovers even more benefits ofyour product or service that you ever thought possiblebefore going through the process33 35. Customer Research: The Benefits Armed with this new information: sales efforts canexperience significant growth Continually assess the competition, and whether or not theyare doing something better than you are doing: Find outwhat they do and make certain your sales effortsoutperform them every single time If they do something better, only invest to copy or improveupon what they do: IF it provides you with a competitiveadvantage (otherwise you may be wasting your time andmoney) 34 36. Customer Research: Match Objective w/MethodQualitative Assessment Or Quantitative Evaluation? Depends On Your Learning Objective Qualitative Assessment (focus group - discussion guide)- Gather Different Perspectives- Determine How People Think- Good For Qualifying (Probing)- Use A Consumer Panel Quantitative Evaluation (survey - questionnaire) - Identify Opinion/Behavior Patterns - Determine How Many People Think A Certain Way - Good For Quantifying (Statistics) - Use Online Survey Tool35 37. Customer Research: Ask The Right Questions . . .To Get The Right Answers Avoid The GIGO Principle Qualitative Assessment- Very open-ended line of questioning- Include indirect questioning if possible- Who?; What?; Why?;, When?; How?- Always probing for deeper understanding Quantitative Evaluation - Typically close-ended questions - Attitudinal questions and behavioralquestions (past and future intent) - Include profiling questions to classify 36 38. Additional Q & A - Thank You! Dennis DevlinPresident/CEO & Leading Consumer Storyteller Consumer Clarity Clear Insights. Clear Strategy. Clear Results. P: 859-372-6688 M: 859-391-2532 F: 888-820-9534 dennis.devlin@consumerclarity.com www.consumerclarity.com37