Building Lifetime Revenue from Customer Groups

Turning Your Retail Customers into Groups--Finding Markets Within Markets

Not a revolutionary idea of course. There are some interesting twists these days. And many of the ideas we cover will have you finally turning that "if you build it they will come" website of yours into a revenue-generating machine. Interested?

This is one area where many of our retail brethren miss out.
Many in niche retail--and I speak of 'successful' retailers here--have yet to put their customers onto a database let alone see what kinds of niches can be mined in those customers.

What are we looking for in turning your present customers into niche groups?

The first item is quantity. Do you have enough customers to create a niche group? Be careful that you do not dismiss a low number out of hand. We know of businesses where the owner has a nice four-figure monthly virtually residual niche with as few as 300 customers AND other interested parties. So you will need to bounce ideas off your business coach or other battle-scared advisor to help you recognize the potential demographics and/or psychographics.

The next item is a continuing interest.

[Sidebar: In BBG, we talk about several ways to format your niche--including building a membership website, blog or off-line club. You will also need a good autoresponder to hold your leads, customers and promotions. I mention what I feel are two of the best that come with a special offer that I have for readers of this Building Business Groups blog at the end of this post. Of course you can Google 'autoresponders' and come up with a plethora of options--some good and some that will be a nightmare to figure out let alone operate. REMEMBER: When we talk of business groups we are inferring a residual side to your business. Ok, back to our regularly scheduled programming...]

Continuing interest may take some noodling and analysis on your part and the part of any advisors you bring to the table. Yet with some, all it takes is to put their antennae up and they will see SEVERAL potential groups within your customer base. There is a lot we can say here about what is contained in the phrase 'continuing interest' but we will cover it in a later article. Just know that you are looking for a product or a service within your items available for your customers that has a natural 'fan club' that is already developed or can be developed.

This natural fan club can take on a 'whole business' look and feel OR be a niche. An example of the 'whole business' model is the gunsmith who loved to work with other gunsmiths from secret stock oils and finishes to bluing compounds and new ways to restore old guns. The result? He charges $39/month for other gunsmiths to be part of his discovery process. At last count he has a little under 600 other gunsmiths as part of his 'club' who feel he gives way more than $39/month in value.

The niche model includes instore clubs and promotions. Say you are a boutique butcher shop market. Maybe your Aunt Alma makes a to-die-for pastry that has been selling well. Maybe you have a unique blend of coffee that your customers rave about. Maybe your business is dressing up in characters and telling stories that character would tell--Ben Franklin, Cinderella, the Tooth Fairy and so on. (Don't laugh, there are a BUNCH of profitable niches!) Maybe it is a service or employee that is attracting above-average customer attention. To wrap up...

1) Determine the true quantity. Don't be concerned if it is only 50. If you can build an ongoing back end product or service to match interests at a low margin, there can be nice residual revenue. Have others look at this issue with you to determine any matches.

2) Determine the continuing interest. Again, do not rely on your own judgment. Involve others and their ideas. Make a list of things where you have on-going interest. Others may come up with unique add-ons or twists to build revenue. I have seen whole new businesses sprout up in this manner. Oftentimes we as owners are too close to the forest to see the proverbial trees. If you absolutely cannot come up with others to look at your opportunity, take a customer survey. Customers are a huge under-used and often untapped resource goldmine of intelligence.

3) Determine what business model is appropriate. Whether it is a membership site software, an off-line club or membership you will need to have the right kind of autoresponder to house your database, marketing tests and hands-free 'courses' to keep customers interested.

Resources--Keeping Track of Customer Groups and Niche Promotions

I have got a special offer for the two resources below. Just follow the link. I have opined as to my choices for what function, but please read what the manufacturers say and juxtapose with your needs. Shoot me an e-mail if I can be of help.

Autoresponders--

Best for individual projects, products and promotions:
http://www.getresponse.com/index/SteveLanning

Known as the most popular and 'Cadillac' of autoresponders for all uses:
http://aweber.com/?329918