Growthink Blog

How to Discover Your Most Profitable Marketing Combinations

Print
Categories:

Below is an easy exercise that will boost your profits.

First, list your products and/or services

Create a spreadsheet. In Column A type the names of each product or service you offer.

Second, list your market segments (customer groups)

In the first row of columns B, C, D, etc., write the names of the different types of customers you serve.

For example, if you have a walk-in store as well as a website set up for e-commerce, you will have at least two groups of customers - those who come in to purchase and those who buy online.

Or you may sell to consumers and businesses.

Or you may sell to affluent consumers and less-affluent consumers. Or you might sell different products and/or services to men vs. women.

List all of these customer segments in the first row of columns B, C, D, etc.

Place an "X" in each cell in which you have a combination

To recap, in Column A you have a list of your products and services. And in the top row of the other columns, you have a list of all your customer segments.

Now, place an "X" in each cell in which you offer that product or service to that customer segment.

For example, if you sell insurance to affluent consumers, then type an "X" in the cell that intersects these two variables.

The result will be a chart with "X"s showing all your product/service and customer segment combinations.

Next, write down a list of all the combinations you found. For example, your list might include:

  • insurance to affluent consumers
  • insurance to businesses
  • home security to non-affluent customers
  • etc.

Determine your revenues and profits for each combination

For each combination, type in how much revenue and profit you generate from it.

In many cases, you will find that one combination dominates your profits. Or that one customer segment (among several products and/or services) buys the overwhelming majority of your products and services.

Importantly, in completing this exercise, you may also identify combinations you didn't know even existed.

Sharpen your marketing focus

Most entrepreneurs and business owners place equal marketing focus on ALL their combinations of product/service and customer segments.

But, smart entrepreneurs and business owners place more emphasis on the combinations that are proven winners. Now that you know your winners (i.e., the combinations that are generating the most revenues and profits for you), focus on them.

How?

Using the example of "insurance to affluent consumers" being a winning combination for you, here's what you should do:

1. Do more marketing to them. Figure out how can you reach more affluent consumers. Perhaps stop doing general advertising that reaches both affluent and non-affluent consumers and do more targeted advertising like direct mail or cable television. Or perhaps there's another company serving this clientele with whom you can partner. Etc.

2. Better tailor your marketing to them. Rather than having advertisements that mention several of your products/services, create ads that solely focus on your insurance offering, since this is what generates the most revenues and profits. Likewise, since you know the specific customer segment you want (i.e., affluent individuals) use terminology and images that will specifically appeal to that segment.

Most entrepreneurs and business owners make the mistake of trying to be all things to all people. As a result, they water down their value proposition to the customers that give them the most revenue and profits.

Rather, by identifying your most profitable customer/product combinations and focusing your marketing efforts to them, you can quickly grow your revenues and profits, and distinguish yourself from your competition.

 

Suggested Resource: Growthink's Ultimate Marketing Plan Template allows you to expertly create your marketing plan. It will help you fully leverage your most profitable marketing combinations and dramatically increase both your revenues and profits. Click here to learn more.


Share this article:


Most Popular
New Videos

"Business Plan
SHORT-CUT"

If you want to raise capital, then you need a professional business plan. This video shows you how to finish your business plan in 1 day.

CLICK HERE
to watch the video.

"The TRUTH About
Venture Capital"

Most entrepreneurs fail to raise venture capital because they make a really BIG mistake when approaching investors. And on the other hand, the entrepreneurs who get funding all have one thing in common. What makes the difference?

CLICK HERE
to watch the video.

"Brand NEW
Money Source?"

The Internet has created great opportunities for entrepreneurs. Most recently, a new online funding phenomenon allows you to quickly raise money to start your business.

CLICK HERE
to watch the video.

"Old-School Leadership
is DEAD"

"Barking orders" and other forms of intimidating followers to get things done just doesn't work any more. So how do you lead your company to success in the 21st century?

CLICK HERE
to watch the video.

Blog Authors

Jay Turo

Dave Lavinsky