Hi my name is Charles George, and I’m excited about this radio show and the IGBR network. For almost 20 years, I have helped a wide variety of business owners and entrepreneurs implement profitable direct marketing campaigns. I’ve done offline campaigns involving direct mail and print. Today, I build audiences online and then monetize those audiences by creating engaging content that leads prospects throughout the customer journey, building profitable email lists, creating offers and writing copy that converts prospects into loyal customers.
The objectives of today’s show are to help you identify the characteristics of your best customers. I’m going to first share why understanding your best customers is critical for your growth.
All customers are not worth the same amount to your business.
Understanding the 6 Types of Customers – (Customer Journey)
Understanding who your best customers is incredibly valuable for several reasons
What You Need to Know
Five different ways to segment a customer database, so you can learn more about your customers.
How to increase revenue?
There are only 3 ways to increase revenue for a business.
The Loyalty Effect- for every 5% customer retention, a business experiences 100% growth, and 25% profits.
What You Need to Do
First you need a customer database or CRM. You can do what I am going to share with you with Quickbooks or other accounting software.
Segment your customer database into the top 1%, 2%, 5%, 10%, 20%, 50%, 75%
80% of all revenue is generated by the top 20%
So by targeting only the top 20% of customers with offers it will give your response rate which is known as lift.
Lift – by targeting only the top 20% of our customers, it decreases overall revenue, but increases profit, because we are not targeting the bottom 80% of our customers who are most likely not going to respond.
Create products that cater to the different customer levels. You need some low-priced products and you want higher priced products. Travel & experience example
Once you know who your customers are then you can go find more people similar to them.
The more you know about your customers, the better your offers will be. How you present the offers will resonate with your audience more.
Customer Avatar Sheet for your best customers –
Remember the reason you want to understand your best customers
Understanding Who Your Best Customers Are
Easiest way is to rank your customers by the monetary value of each customer.
RFM Calculation – Recency, Frequency Monetary Value -Gives each customer a weighted average and a score. List customers by score
Ways to Learn More About Your Customers
Facebook – Audience Insights
Facebook Page – Grow your page until your page shows up in Audience Insights
Finding New Customers
Uploading Your Email List to Facebook Ad Platform - Creating Look-a-like audiences
Audiences from people who have interacted with your Facebook page, who visited your page
Database Selects – Experian, Melissa Data
Using the data to find new customers vs. targeting your best customers.
Facebook Lookalike Audiences
Dedicated emails to targeted lists,
Direct mail lists
Previous: Episode C3.004 Understand Customer Usage (User Friendly & Results)
Next: Episode C3.006 Opportunities to PLUS 1 the Relationship
On next week’s show, we are going to be talking about how to build stronger relationships with your customers. This week we are identifying who your best customers are. Next week we are going to talk about how to actually build stronger relationships with your customers.
Written by Charles George
new choice for BUSINESS SEARCH
All IBGR Shows Notes are available for download