Attracting new customers requires a systematic plan to target their interests.
Flexibility and creativity are the keys for any business hoping to expand its customer base. Referrals are one of the most important tools, because no business can grow without them. Social networking sites have become an important tool for spreading the word online. Targeting advertising to specific customer niches in carefully chosen ads or direct mail pitches is also considered increasingly essential to helping businesses develop their own distinct voice in the marketplace.
Developing Referrals
Referrals are the most important factor in growing any business. Referral customers also purchase more items and generate more leads, business coach Brad Sugars states in a May 2011 column for "Entrepreneur" magazine. Making this step work requires a clear vision of the ideal customer that goes beyond satisfying specific brands and preferences, Sugars says. Thinking in those terms enables business owners to target their existing networks more efficiently.
Direct Mail
Although costlier than online technology, direct mail marketing can be more effective over the long run, says author-marketer Lois K. Geller in an April 2007 CNN Money column. For example, one Geller-crafted letter enticed clients to respond by emailing a special code for learning tips about marketing their businesses. Once launched, the new campaign helped increase sales by 11 percent, versus the 0.75 percent return observed for a postcard campaign, according to Geller.
Focused Advertising
Advertising is one way of reminding customers about the value of using a business' products or services. However, its effectiveness depends on generating enough leads against the money being spent, according to Sugars. A focused approach generally works best. For example, a business owner can target TV advertising by programs, instead of channels or networks, to reach her desired customer. Similarly, newspaper, radio and online advertising allow businesses to target specific niches.
Social Networking
Social networking sites are becoming essential in reaching customers who otherwise might never hear of a particular business' existence, according to Women For Hire CEO Tory Johnson. Starting a free Facebook fan page is one way. For example, Minnesota photographer Chris Woodbury posts wedding photos onto his page, Johnson notes on the ABC News website. Guests pictured in the photos are then encouraged to become fans. Sixty percent of Woodbury's business now comes from his page, Johnson says.
Strategic Alliances
Forming partnerships with similar businesses can maximize resources to both sides' benefit. One of the most common ways is a strategic alliance, where both businesses refer customers to each other, Sugars says. This is a step beyond host beneficiary relationships, which focus on one business using its database to promote the other, according to Sugars. Strategic alliances can last for years, while creating a steady stream of referrals to ensure both businesses' growth and survival.
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