Should We Not Think of Our Customers As Being in One Group--Ours?
No. Here's why--the times, they are a-changin' to throw in a little 60's Bob Dylan. A person in business for 5,10, 25 years often looks at his or her customers with the idea that they are simply one homogeneous group--their customers.
But are they really one group? The thinking person would have to say, "No, of course they are not one group. They have different demographics and psychographics as to their makeup. Yet they are still this person's customers. That is one thing they argree on by the virtue of their wallets."
OK, granted. I've mentioned the National Association of Business Coaches (NABC) that I created in the mid-1990s with my 'recovering attorney' friend, the late great Hal Wright who is now with the Lord. (Some of the following may be construed as criticism for my buyers of NABC, but it is not intended.)
For Example, Different Backgrounds Coming Together as Business Coaches
At NABC we had folks who wanted to be trained as business coaches who were very successful business owners themselves, some were retired, but just wanted to 'give back' to the market or niche that made them successful. They didn't need the coaching fees but their clients needed to pay them.
There were others who wanted to make business coaching a vocation and only work with women business owners. Still others only wanted to work in the corporate environment and work in the peer to peer niche. Others only wanted to work with speakers, only medical people or only retailers.
My point is that although the 'niche' of our business may be looked at as being narrow, i.e. 'just business coaches,' in reality our membership was comprised of many varied interests. It is too bad that I often hear back from past members who continued with my buyers (it is the Worldwide Association of Business Coaches--they couldn't improve on the name that much), telling me that they are uncomfortable that there is a pervasive 'feminine' attitude throughout the organization now. [Believe me, this is an opportunity for someone, not 'something they will just have to get over and live with as I have been told!]
Questions to Ask Yourself About Your Customers With Retention in Mind
Maybe with my NABC example above, there needs to be a 'men' angle and 'women' angle (political correctness notwithstanding) to divide the gender from the get-go. The time for this type of thinking should occur back in the strategic planning stage in conjunction with what kinds of back end product or service you want to provide. Our focus then, being customer retention, should bring some questions to mind that need noodling as you are faced with an ever-growing array of competition possibles. Ask yourself...
1) As I look over my customer list, are there some natural 'divisions' I can see in the likes and popularity of one or more of our products and services?
2) Do I feel there are enough people to warrant a separate 'club' or promotional activity to them? Who else feels that way that I respect? Who does not feel that way whom I respect?
3) Could I build enough margin into a special back end product just for my identified niches so that I do not HAVE to have a 'quota' of people? [eg Creating a special big-ticket coaching or 'how to' package that could be fulfilled by you or a qualified employee where you DO NOT have to even have any number of 'quota'. You simply advertise the service along with your regular out-going customer communications and when you get a bite on the big-ticket back end, you have the time or staff to fill it as the opportunities present themselves.]
4) Would/Could this new backend activity be an everlasting, ongoing part of my business?
5) Would/Could it be always 'evergreen' in presentation to customers? (Meaning it never goes out of date and has little if any decline on the effectiveness of the product/service in the lives of your customers.)
Do not get 'creating group blinders' on. Think why your customers chose you when they have a plethora of your competitors to go to....or stay away from. You may come up with a new product or service that DOES NOT need a group--just a sales effort. Building groups is tough work, but once identified, built and functioning (you are to the 'tweaking' stage), the lifetime value of a customer shoots up dramatically.
We will be getting into building congruency in your groups, your offers and products, in a more pointed manner.
Good stragegy,
Steve
Showing posts with label retail niches. Show all posts
Showing posts with label retail niches. Show all posts
Thursday, October 8, 2009
Tuesday, September 29, 2009
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
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
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