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Betsy Framson - CPA |
I occasionally work with financial professionals who provide services, not products. Our case study this month is about Betsy Framson, a CPA who works with both individuals and small businesses. Her issue: How do I grow my business?
The typical answer: Work harder! My answer is my slogan: "Work smarter and make more money." But what, exactly, does it mean to work smarter? And could Betsy work smarter by using Target Marketing?
What Is Target Marketing?
First: Discover who has chosen to work with you.
Second: Identify the particular characteristics that your preferred clients possess.
Third: Discover how to effectively and consistently reach members of your target market.
Key Point: Your target market consists of people who have chosen to deal with you. Contrary to almost all marketing literature and training, the buyer, not the seller, is the ultimate decision maker. You, as the seller or provider, may choose to work in a particular market, but unless the buyer responds positively to your offer, your selection of a Target Market doesn't automatically guarantee success in that market.
The Question
What would you suggest Betsy do to increase her business revenue? (Perhaps you have the same desire for your own practice.) Hint: Think Target Marketing.
The Discovery Process - Part I
First, we asked Betsy to describe her Target Market. She was stymied because she didn't know who made up her target market. Was it business owners, or non-business-owning individuals? She couldn't identify the key factors describing her best customers. The fact that she couldn't answer these questions revealed she needed to know much more about her preferred customers.
Target Marketing exists to help pinpoint those customers and prospects you should pursue. By more precise marketing, Betsy could reduce her marketing efforts -- and also increase her income. In some cases we've seen 50% or more reduction in effort.
The Discovery Process - Part II
We provided three tools to help Betsy discover her Target Market.
- She completed the Invisible Market Matrix. This is an Excel-based survey form where she selected her top 20 clients and evaluated each one on more than 60 different factors. The survey revealed key characteristics of her best customers. (Results to follow.)
- We asked Betsy to complete a Life Interest Inventory. This process helped her gain clarity on her interests, hobbies and other lifestyle preferences.
- Finally, we asked Betsy to analyze her referrals received and referrals given.
Discovery Process Results
- The Invisible Market Matrix revealed that Betsy's best clients are: founder-managed small manufacturing companies with 15-25 employees.
- The Life Interest Inventory revealed that Betsy always liked independent-minded people and that she always liked solving riddles and puzzles.
- The referrals log revealed that she was neither giving nor receiving referrals in her Target Market. Why? She never knew who her Target Market was and thus she was not engaged in a focused marketing program.
Betsy concluded that her future marketing efforts would be focused on finding more small companies that needed her service. She asked for referrals to these kinds of companies, and also joined two organizations that served the small manufacturing market.
Would you like to discover your Target Market? Call me for more information. |
Nick is available to answer any of your coaching concerns, and as always, will provide a complimentary coaching session to anyone interested in pursuing a coaching program. Please call Nick at (510) 898-3245 or email him to set up a session.
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Newsletter
Issue No. 10
September 2008 |
Target Marketing
What Is It?
· You own a general store in Podunk, USA. You carry groceries, hardware, books, magazines, all types of shoes, clothing, hunting and fishing gear, lumber and other building materials.
Question: Would you worry about carrying the most fashionable women's shoes? Would you carry a brand called Manolo Blahnik? ($500+ for 4" high heels) Of course not. Target marketing - in fact any marketing - is not an issue because you have the whole market.
· Now assume you own a shoe store in Manhattan. Do you think you'd carry the limited variety of shoes that the Podunk USA general store carried? Of course not.
Target marketing is now an important issue because a diverse market exists. As there are many different market segments, there are now a corresponding number of products/services required to meet the diverse market needs.
Target marketing asks you to:
· Precisely describe the services/products you provide.
· Know the precise characteristics of your customers who choose to work with you. When you know the exact benefits your products offer, and know who has chosen to work with you (your Ideal Clients), you will become more successful because you will be able to direct your marketing efforts to your preferred clients and prospects.
This month we'll look at Betsy Framson, CPA, and learn how she discovered her target market.
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