Too often, sales and marketing professionals are lackadaisical on their approach when it comes to the development of their client base. I jokingly say this during presentations but sadly true, âmost of the practitioners in the promotional industry will take anyone who can fog a mirror and write a check as a customerâ. This approach may have worked in years past, however this approach is now flawed. Technology and the open-door policy on allowing anyone into our industry has created some serious issues. That said, you neednât be a victim.
Much of the literature, both electronic and hard copy, speaks volumes on the desire of marketing professionals to work with strategic partners that truly have an understanding of their business â how it works, what makes it tick, who the players are and how to connect and engage their client base. Yet, with all of this, many still choose the âthe fog a mirror and write a checkâ approach to developing strategic markets.
I have written on this topic many times, approaching it from different angles to drive the point home. Some have embraced this concept with great success and others donât quite understand the soundness of this methodology. I want to take a different tact here today to detail this approach and hopefully it will shed some light on how you can be most effective in growing a sustainable business for years to come.
One of the key markers in growing a successful, profitable business is knowing who you are, what you do, where your expertise lies and who your customers are, specifically, the most profitable ones! As I work with individuals, I try and establish a baseline of where they were, where they are now, and where they want to go. My job, then, is to help put them on the right path so they can see their vision come to fruition. So how is this done?
We Start with a Plan
Without getting into too much detail here, having a strategic plan is imperative, sorry, CRITICAL. Not one that is not floating around in your head, but one that is committed in writing, can be reviewed often, and proactively changed or modified as you move forward.
Develop Several Vertical Markets- Maximum Five
Begin with your current clients. Take your entire client database and segment them via markets, be sure to make these market segments broad-based. For instance, use the header âAutomotiveâ not âCar Dealersâ; we will segment deeper later. Further segment the list by client name, year-to-date sales and gross profit. Once completed do the calculations. Total the sales and determine the average gross profit within each vertical market. I would encourage you to put this in a spreadsheet format, itâs much easier to read and you will get a snapshot of exactly how well youâre doing in each market segment.
Take the time to review this in detail and ask yourself some thought provoking questions:
Which give me the greatest profitability?
Which segments are the most fun to work with?
Which deliver the most loyal clients?
Reflect on this one because you should be surrounding yourself with people that appreciate your value, not ones that are beating you up for free this and that and then wanting you to match prices on concepts you presented that they then found cheaper elsewhere. Develop a profile of the type of client you want to work with â then go find them.
Where do I honestly see the greatest growth potential?
This is where the marketing plan comes in so handy. If youâve done your plan correctly and have done ample research then you WILL know the depth of the market in your immediate geographical area. Donât stop looking there because once you become known as the expert in that particular vertical market your name, services, and the solutions you have or can develop could indeed go viral.
How many markets should I have?
This is determined by the amount of staff you have, time, and bandwidth. I would say you should have, at minimum, three to five if you are a one-person company and that number can expand for larger firms. In larger companies, this is a great way to develop salespeople and to keep your organization growing. Please note that once you have your companyâs client list segmented you may find you have twenty different categories or segments, but develop only three to five initially. The goal is to be the expert in each area, not a generalist. That said, I am not suggesting you forget about the other clients on your list, but really begin serious and strategic marketing efforts into the three to five that youâve selected.
Review Regularly
As these markets expand you may want to further segment and the reason for this is that your marketing efforts must be in line with their specific needs. Some marketing can indeed be general but the more specific you direct your marketing efforts, the greater the likelihood of success. This works the same when you are helping your clients achieve their respective marketing and sales goals.
Every month, for the first six months, review your vertical market strategy. You may find certain markets are drying up or others are emerging. Resist the urge to jump ship and develop additional markets on a whim. Be strategic and THINK strategically. After the first six months review quarterly. DO IT. Make it a habit and youâll be amazed how this will help you run your business more efficiently.
Develop These Markets â Become the Expert
Make your efforts speak to these markets. If you think about this, client and prospects (when spending money) want to know that they are in good hands. Take a moment to think about this in your life: you want the best dentist, doctor, lawyer, auto mechanic, friends, nail technician or hairdresser. Same holds true for your clients. In order to become more entrenched in these specific market segments, you need to keep your ears to the ground, eyes on the market and become fully engaged. This is accomplished by attending their shows, reading their blogs and articles in specific industry publications, connecting with players on Facebook©, LinkedIn© and other social media sites. Having this ongoing engagement, you will gain amazing discussion topics when in front of clients and prospects. And again, expands the perception to prospects and clients, you are THE expert in their specific field.
I Know This WorksâŠ
This strategy worked for me and many others that I consult. My goal is and has always been for the betterment of those that read these words. The next step is the hardest and itâs making the commitment to do something but only if you feel this approach will work for you. I assure you, if you implement this strategy, your conversations will be better with your clients, youâll be perceived differently by your clients, and potentially you will OWN categories where you can be perceived as the expert. And my friends, EXPERTS get paid more than generalistsâŠbecome an expert!
Next month we will discuss my classification strategy!
Hereâs to making the balance of 2019 memorable and for setting the tone for a highly profitable 2020!
As always, continued good selling - CQ
Cliff is the Director of Marketing for iPROMOTEu, additionally and for over 30 years, Cliff has been speaking, training and consulting internationally to associations and national business groups on more effective ways to market themselves, their products and services, as well as motivating their personnel. Recognized by PPAI for his creativity, he has won the prestigious PPAI Pyramid award 27 times and the Printing Industry's PSDAâs Peak Award for creativity 5 times in three years. He has also received PPAI's Ambassador Speaker of the Year Award six consecutive years and was the inaugural recipient of PPAI's Distinguished Service Award. Named one of top six industry speakers and trainers, he also was recognized by PPAI in the book, "PPAI at 100," as having a significant influence in education. He has also been recognized by Counselor Magazine as one of the Top 50 Most Influential People in the Promotional Products Industry. Cliffâs BLOG 30 Seconds to Greatness won the Award for Most Passed Around Content in 2016. In December, Cliff will be launching his third book, 30 Seconds to Greatness along with a workbook. Connect with him on LinkedIn or via email at cquicksell@ipromoteu.com.