Dallas Business Consultant Elijah ClarkDallas Business Consultant Elijah Clark

Segmenting your customers

Direct Marketing

The key to creating a marketing strategy is being able to quantify the market. Determine a plan of action to reach the people that haven’t been reached. Not everyone will or should be your customer. By knowing your potential customers’ demographics, your business can narrow its dollars efficiently. Segmenting helps generate an effective plan that will target specific demographics.

Customer Segmentation means to divide your customers into groups that share similar characteristics. Customer Segmentation can help you identify unmet customer needs that can then be used to outperform the competition by developing uniquely appealing products and services.

Use Segmenting to:

  • Divide customers and identify unique needs based on behavior and demographics
  • Evaluate sales and profit potential of each segment
  • Develop targeted marketing strategies
  • Measure marketing and sales performance effectively

Outlining your personnel expenses

The Right Personnel

Businesses generally have multiple employees completing various task. If this is your business, then you need to evaluate the expenses needed when hiring new personnel.

Personnel expenses may include expenses of current and future employees, which are needed to successfully implement the marketing strategy.

Expenses to consider include:

  • Number of employees
  • Type of labor (skilled, unskilled, professional)
  • Where to find new employees
  • Quality of existing staff
  • Pay structure
  • Responsibility

Strategic business sourcing

Effective Sourcing

Most all businesses have some form of sourcing to other individuals or companies. Strategic sourcing is an approach that formalizes the way information is gathered and used so that a business can leverage its consolidated purchasing power to find the best possible values in the marketplace.

Developing an understanding of your sourcing power will allow you to make certain that you are saving the most money by finding the most affordable sourcing opportunities.

Sourcing should not always focus on the financial savings, but should also consider tasks and quality of the service.

Things to consider when sourcing:

  • What are your buying needs
  • What type of professional do you need
  • What maximum price do you want to pay
  • What volume do you want to purchase
  • How do you plan to project manage
  • Will you be able to meet deadlines

Professional and advisory support

Having the input of a professional on how to maintain your business and generate profits is critical for the success of your business.

It’s up to you to determine whether a professional or advisor is needed to help with your business’s success.

Suggestions of support may include:

  • College friend
  • Professional family member or friend
  • Board of directors and management advisory board
  • Attorney
  • Accountant
  • Insurance agent
  • Banker
  • Consultants
  • Mentors and key advisors

Knowing your key customers

Know Your Customers

Of all the possible customers, your business should focus on only a few types; these are the ones most likely to value your business’s offering at the price points that are set.

When creating a business plan, be sure to include a key customer analysis that examines the customers’ demographics and why these customers are important.

Demographics to consider:

  • Age of customer
  • Location
  • Gender
  • Race
  • Household income
  • Occupation
  • Education

Knowing your customers will allow you to know where to spend your marketing dollars and target customers and potential customers right where they are.