In a perfect world, you would have an unlimited budget to market your business in order to find new customers and increase sales. You could buy lots of online and offline advertising, run promotions to build traffic in store and online, and launch a proactive public relations campaign to increase your product or brand's visibility and awareness. But this isn't a perfect world. Realistically, most small businesses and even many mid-sized firms have more great ideas on how to peddle their wares than available resources.
So where do you start if you are looking for more customers? The following pages will delve into how to conduct market research to understand your target audience and their needs, how to determine which lead generation techniques are best to broaden your sales horizons, and how to increase sales by following several strategies to sell additional products and/or services to existing customers.
Before you can find new customers and increase sales, you need to understand your customers
Understand Your Target Audience
Before you can find new customers and increase sales, you need to understand who your customer is, what value proposition you offer to customers, and what your competition is currently offering in the market and where there are gaps for a new entrant. In other words, you need to do some market research -- whether that means hiring an outside firm to do the legwork or trying to do it yourself. There's an underlying disconnect between your motivation to increase sales and your customer's motivation to solve their problems.
"Attracting more customers is really about listening to their needs, not being a solution looking for a problem," says Paige Arnof-Fenn, founder and CEO of Mavens & Moguls.
Find Out Who Your Current Customers Are
In order to develop a marketing plan to reach new customers, you need to better understand who you're already selling to. "If I'm trying to expand sales, I have to find out who my existing customers are. What are their demographics? What do they look like?" says Jerry Osteryoung, director of outreach for the Jim Moran Institute for Global Entrepreneurship at Florida State University. "That means doing market research."
Market research runs the gamut from very simple qualitative research to in-depth quantitative analysis. It can be done very quickly and inexpensively by sending surveys to your existing customers using one of the many online survey tools, such as SurveyMonkey or Zoomerang. You can also get to know the target audience by looking at existing sources of information -- from the U.S. Census Bureau or other government agencies, from trade associations, or from third-party research firms. But depending on the questions you are trying to answer and your research budget, your market research can involve more extensive interviews with customers and qualitative studies on how target customers feel about your business, its products and services.
Certain products and services may appeal to one audience but not to another, so understanding the strengths, weaknesses, opportunities and threats in your target market is critical. You can get to know your customers and segment the market any number of ways including by:
- Demographics -- statistical data on a population including income levels, age, etc.
- Psychographics -- the attitudes and tastes of a certain demographic.
- Ethnographics -- examination of particular cultures.
- Buying habits -- how, what and where customers purchase products and services.
Defining the Market for Your Product
Use the information about your existing customers to develop a target audience for your business in its drive to win new customers and increase sales. "While there are core customers you are trying to reach, often there are other markets that are also important to address," Arnof-Fenn says. "Make sure you know who the gatekeepers and influencers are; they will affect the decision makers and you will most likely need to sell to them differently than to the end user." For example, parents might be the gatekeepers for products targeted to children or technology managers might hold influence over a company's decision to invest in new software.
Determine which key messages, features and benefits matter to each potential market. Tell these customers how your business can help them solve their problems. "In order to have a customer go to your online shop, you have to find a reason why these customers want to come to you," Osteryoung says. "The value proposition has to be spelled out clearly."
Next, you need to figure out where to reach these customers and whether there should be a marketing or advertising plan that goes along with that outreach.
Generating Sales Leads
There are a variety of age-old staple techniques and newer tools you can use to find new customers and increase sales. It's best to understand the range of choices you have in order to determine which may best help your business reach new customers. Newspaper readers may not be moved by Internet-based sales techniques.
"It starts with good people," says Peter Handal, chairman and CEO of Dale Carnegie Training, the sales and leadership training organization. "If you're a one-man shop, it's one thing. But if sales people are really important, you need to hire and motivate good people and you want to give them an upside, such as sales on commission. The motivation is not just money it's also helping them overcome the fear of prospecting."
Here is a rundown on the techniques available:
- Cold calling.
- Develop champions of your products.
- Affiliate marketing.
- Leverage your website.
Sell More to Existing Customers
In order to increase sales, many businesses believe the only way is to find new customers, but a number of experts say that this strategy leaves out an obvious potential source of new sales. It's much easier to get an existing customer to buy from you than to convince a new customer to take the plunge. "They're forgetting about low hanging fruit -- their existing customer base," says Osteryoung. "If I want to expand sales, the number one place to go is the existing customer base. They already trust you."
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