The Right Market

Market Research

The most important step after cultivating an unshakeable mindset is developing market research. Right product, right desire, right timing. Matching all these 3 aspects can be extremely challenging if you have no idea what to look for and the majority of market research being done is being done wrong. Why? Becuase( I was warned against starting sentences with because) it's being done to validate our ideas rather than what's truly happening in the marketplace. It is looking to prove rather than disprove. It is looking to fit rather than reject a hypothesis. Finally, it focuses on interests rather than behavior.

Gary Halbert asked people if they read The National Enquirer, few hands went up. He then he asked if they read the Bible and everyone besides on top of raising their hands, stood up clapping. Yet statistics show that the National Enquirer is just as widely read as the Bible. Gary called the National Enquirer readers Martians from out of space because he could never find who they are.

However, this one realization will probably make a world of difference when doing your market research.

Interests identify with how we desire to be viewed whereas behavior identifies with who we inherently are. I'm interested in a private plane G4 to be specific….I read on the engine capacity, the torque and if you were a marketer, you would probably foam around the mouth if you targeted me on interest alone. Good luck selling me a plane. Before we even decide to create one piece of marketing there are two things we must consider:-

  1. Desire.
  2. Ability.

But is it a bit hard to determine one's desire……???

On this post, what we are going to cover are the 3 driving forces that we should look for when determining desire and ability.

Doing it this way will definitely give you a quantum leap over your competitors.

This will challenge everything you know about market research and give you a strategic perspective.

ENJOY.

Lee Kariuki

The 3 driving forces to reduce friction are-

  1. Recency
  2. Frequency
  3. Magnitude

The premise to sales is that the hottest buyer(the one with the least resistance to sales) is the one that bought something from you. As long as they were already satisfied and had good rapport, they already know you, hopefully, they like you but most important they have trust in you. then you have what is considered the gift that keeps on giving.

Many businesses drop the ball by looking for the new business when they already have customers who are ready and willing to buy the next product if only they would make a logical emotional compelling offer. When I find a barber I like, unless he gives me an unwanted Mohawk, I'm sticking to him for a long time. Even if he has the flu, I'd still go to him for a haircut. That's why we have the same doctor, we shop at the same grocery store, often we buy clothes from the same store. We are already pre-programed to habituate our shopping habits and buying from someone else means we have to make a decision. Deciding is "hard" We have to figure out if we can trust them. We have to figure out if they have testimonials. We have to figure out if we will have a good experience. Arrrrgggggh. I'd rather just stick with what I know! Therefore why do businesses focus energy on finding new customers when they already have existing ones ready to buy? It's the six million dollar question.

Chant this mantra every minute you get!  "Sell whats already selling the way it's selling"

RECENCY

Let's say you wanted to sell shoes. A genie walked up to you and said "Today is your lucky day" "You can ask for anything you want to help you sell the shoe and I will give it to you"

Some people would ask for the best shoe. Others will ask for the most expensive shoe whereas others will try and sell the shoe they like the most. Out of all the participants of this exercise, almost no one asks for the most important part of the selling process. A hungry buyer.

Now picture this, let's imagine the genie did grant you a hungry buyer and before they buy you have 5 minutes to determine if they are going to buy or not. You go to the first hungry buyer, hold a conversation jot down notes and then go to the second buyer and before you know it…your time is up. What question would you ask?

What kind of shoe are you looking for? What do you look in a shoe? What type of shoe do you love? and btw these are all valid questions. But what is the most valid question that almost no one will ever ask?

When was the last time you purchased a shoe?

That is a loaded question. Why? You get the most pertinent information to make the most important decision. If one says they bought a shoe last month and the month before whereas the other says they bought a shoe last year, which one would you approach more confidently with the likelihood to buy? Now case in point, the repetitive buyer may not buy right now, but if you create a relationship and you know they have a habit of buying every month, you have found yourself that gift that keeps on giving.

Repetition is one of the most unconscious behaviors in our body and smart marketers know this. A recent buyer is the holy grail of sales. Why? They have momentum and momentum is mobile.

Now if you're anyone like me, you may be wondering "Hey Lee..if they bought the product that is similar, why would they buy another one?"

First of all, you are not the market and even if you were, it is your judgment that is holding you back. Your work is to study market behavior with a non-judgemental eye. When it comes to sales, emotion rules. That's why people buy more of the same product if bundled up. That's why Trey Lewellen(He's pretty open about this) sold a million dollars worth simply by adding more of the same product after the customers had already purchased the first product. Recency is gold. It's called sales momentum.

FREQUENCY

I mentioned and touched on this above but frequency goes hand in hand with recency. If a customer buys a shoe once a year versus the other one that buys once a month, the once a month customer may be a precise target compared to the once a year customer. Frequency tells us a little about shopping behavior. You wouldn't advertise Halloween products in January, would you? Why because Halloween isn't until October and has a low frequency. (Frequency is how often and volume is how large)Now frequency and recency alone are not enough in market research. What if your customers recently and frequently bought  a product but it was only worth $.05?. Would they be a viable prospect?

MAGNITUDE

The final piece in completing the market research model is the size of the transaction. There are two things to consider.

Do you want:-

  1. A customer that spends a large sum but buys once a year OR
  2. A customer that spends a small sum but buys once a month?

There is no right or wrong answer here just a matter of preference and it all depends on the business you want to create.

Magnitude dictates what type of business you want. The beauty of big accounts is that you don't need many to get to your income goals but then you risk being at their mercy due to dependency. On the other hand, small accounts do hedge against risk as you focus on volume but may require personalization to avoid the commercialization aspect of your business.(Customers dislike being identified as numbers)

The Ideal Market

This is a market that caters to

  1. Who you are(that's why mindset is so crucial)
  2. How recent they bought
  3. How frequent they buy
  4. How much they spend.

If you can find the ultimate balance of the above 4, then marketing(which is the art of communicating desire to the able (more on this tomorrow)) becomes easier.

So you’ve read this far, light bulbs are going off and you are ready to throw your obstacles off the balcony…(maybe not this second) but your motivated.

Awwww Yeaaaaah, do I have a treat for you. You’re just in time for the 5 Day Conversion Extravaganza to celebrate launching “The Conversion Blueprint” program. You don’t want to miss this out. If you’re a consultant, a freelancer or a small business owner, then this is one challenge you want to be on and here is the main agenda…..

June 12th, 1100 AM PST Day 1: The Right Mindset  (Done yesterday replay in your member’s area)

June 13th, 1100 AM PST Day 2: The Right Market    (Done today replay in your member’s area)

June 14th, 1100 AM PST Day 3: The Right Offer

June 15th, 1100 AM PST Day 4: The Right Message

June 16th, 1100 AM PST Day 5: The Right System.

By the end of the challenge, you will have a system that captures leads and CONVERTS them to customers in a non-threatening way. What takes people months and years to do, you will do in 5 days. However, that ability won’t happen on its own. That’s why you have to click the button below to sign up.

See you then….

Cheers!

Lee Kariuki

"yes let </span></span>me in"

About The Author

Lee Kariuki

Systems and strategy. I grow businesses by simplifying them. What do your customers want, and what's in their way? Simple right? Reach me at admin@leekariuki.com.

Comments