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Targeting High Yield Prospects

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Presentation to the Houston Business Connection November 19, 2010

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Targeting High Yield Prospects

  1. 1. Presentation to:Houston Business ConnectionTargeting High Yield Prospects Presented by: Misty Khan Advena Artemis LLC 11/19/10
  2. 2. Session Outline• Why Targeted Marketing?• Determining Your Targeting Markets – For whom do you add the most value? – Which clients are most profitable? – Which markets fit your ideal profile?• Perception Is 50% of Reality – Objective/Quantitative Analysis – Group Exercise• Questions
  3. 3. Why Targeted Marketing• Stretch Your < Fortune 500 Budget• Commodity Perception• Specialization Suggests Expertise• Concentrate Your Efforts
  4. 4. Determining Your Most Profitable Target Markets• For whom do you add the most value? – What differentiates your product/service? – What do you do well? (hint: from client’s perspective not yours) – Can you quantify your strengths and differentiators? (hint: “quality product” is not specific enough!)
  5. 5. Determining Your Target Markets• Which clients are most profitable? – The obvious: margins – Don’t let % revenue mislead you – Account for hidden costs (customer service, sales time, sales cycle, credit, late payment) – Prefer most profitable product mix
  6. 6. Determining Your Target Markets• Which markets fit your ideal profile? – Who stands to benefit most from your differentiators? – The more data you have, the easier it will be to see which markets meet your profile
  7. 7. Perception is 50% of Reality• Objective/Qualitative Analysis – Matrix Concept – Weight Strength/Profitability Factors – Assign Rating Categories – Use Objective Measures WF Factor 1 2 3 4 5 3 Avg. <100 101- 201- 301- >400 Volume 200 300 400 2 % <1 1–5 6 – 10 11 – >20 Revenue 20 5 Potential <200 201- 501- 1001- >2000 Volume 500 1000 2000 4 CS Calls >24 12 to 6 to <5 0 23 11
  8. 8. Group Exercise• Choose a strength (examples below) – High on time delivery rate – Low % returns – Low client turnover• Or a profitability factor (examples below) – Low # customer service calls – High profitability margin
  9. 9. Group Exercise• Weight your strength/profitability factor – Can use 1 – 5 ranking – Or % (where all factors add to 100%)• Assign rating categories – Set ranges for 5 ratings (1-5 or 0-4) – Must be objective ranges – Use examples where possible
  10. 10. Group Exercise• Fill in your matrix – see example WF Factor 1 2 3 4 5 5 Profit Margin % <5 6 – 10 11-15 16-20 >20 2 % of Revenue <1 1–3 4 – 10 10 – 15 >15 3 OTD Importance 1 2 3 4 5 or 4 & listed as goal Example: Market Segment A WF Factor 1 2 3 4 5 Score 5 Profit Margin % X 20 2 % of Revenue x 4 3 OTD Import. X 15 (5)(4) + (2)(2) + (3)(5) = 39
  11. 11. Questions

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