Did you know that 97% of your ideal clients are NOT looking for you?
The problem that many marketers face is that they waste their time chasing prospects who are not interested, not aware, or not ready to buy.
Callan Rush, Marketing and Motivation Maven, breaks down a company’s market buying segments as follows:
- 3% of your market is actively shopping for your product or service. These people have a need for your product or service and want to make a purchase decision within 90 days.
- Example: You are a car dealership and someone in your market has their car break down beyond repair. This person needs a car to travel to work and to bring their kids to school. This person needs a new car as soon as possible. This person is actively shopping for your product.
- 7% of your market is open to your product or service. These people are passive buyers who have not yet been proactive in their buying efforts but are interested in in purchasing your product or service in the future.
- Example: You are a car dealership and someone in your market has a car. This car is getting older and this person has a growing family. This person identifies that in the future, they will need to buy a new car to fit their growing family’s needs but has not gone out shopping for options. This person is open to your product or service but is not ready to buy.
- 30% of your market is aware of your product or service for the future. These people do not have a need for your product or service at this time but know that it is available to them.
- Example: You are a car dealership and someone in your market drives by your lot everyday on the way to work. This person’s car is still in decent shape and they have other priorities to take care of before ever thinking about buying a new car. Because they have seen it in the past though, they know your car dealership is nearby for when they need to make a purchase in the future.
- 30% of your market is unconscious of your product or service. These people may or may not need your product or service but either way, they are not buying. These people may not have a need or do not know your product or service exists even though it may help a need that they do have.
- Example: You have a car dealership and someone in your market is content with their car. Maybe they just bought a new car or maybe they are happy with the car they have and therefore are not looking to make a purchase anytime soon. Marketing to these people will not yield any favorable results.
- 30% of your market will just say “NO.” These people are not interested in your product or service and never will be. These are the people that marketers must learn to say “goodbye” to.
Once we get rid of that last 30% of people, how should marketers reach the other 67% who are not yet actively shopping?
Education-based marketing provides value to a consumer before they make a purchase. Consumers like to do business with people and brands they trust. You may have the lowest prices or the best product, but if you're not perceived to be trustworthy, it's going to difficult to attract and then keep your customers.
Before you put together an education-based marketing strategy, consider these things:
- Who is my specific audience?
- What is my audience's specific problem?
From here, offer expert information and helpful tips to enhance your consumers' lives while avoiding your sales pitch. This information can be presented in a variety of ways including free white papers, blogs and videos.
The 80/20 Rule
A good value-to-sales ratio is the called the "80/20 Rule." Offer your customers valuable, education-based marketing 80% of the time while promoting your brand only 20%. This provides your customers the information they need to build trust and then reminds them that you have a product or service to help alleviate the problem they have.