Services Marketing Tip: Rating Parameters Part 1
After you have done the exercises in Strategic Marketing Questions Parts 1 & 2, you will have remaining segments on your list. For each of them, you can use the following parameters to rate them:
1. Clients who want the service you deliver
Clients must recognize that they want the service you provide. Please note that I say want rather than need. For example, there are tens of thousands of businesses that need to improve their marketing, but until they really want to improve their marketing, and make a commitment to doing so, they are not a candidate for my services.
It's simply too time consuming and too expensive to educate all of the people who need a service that they should want that service. As the old saying goes, you want to be "preaching to the choir". Clients who have a strong want for your service are essential to building a successful practice.
2. Clients who can afford to pay for your service
As much as they may want your service, some segments will never be able to afford them. I've consulted with dozens of well-intentioned service professionals who want to target small business owners. The problem is, most small business owners have little or no discretionary income. If a potential client can't afford your service, regardless of how much they want your service, they will never become a paying client.
3. Clients who will pay a premium for your service
Clients who understand exceptional value and are willing to pay for it are usually the easiest clients to do business with. For example, I have a client who consults with the top producers in the insurance industry or insurance agents who would like to become top producers.
She charges $6,000 to attend her 3-day training program. Dozens of agents who understand that they will add at least $50,000 to their annual income line up to pay a premium price for her service.
4. A client who has the authority to buy your service
This is also essential. Too often, I see service professionals wasting thousands of dollars by presenting to the wrong type of client. A client must either have purchasing authority or directly report to the person with purchasing authority in order to be a bonafide prospect. If they are any further removed from the person with actual purchasing authority, you're wasting your valuable resources.
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