dean jackson

Single Target Market and the Life Time Value

B2B, life time value, Marketing, Product Management, single target market

I came across the concept of the Life Time Value from Jay Abraham while reading his book, Getting All You Want from All You Have. It was a very intriguing book name and I couldn’t end up not buying it. Since then I have read it multiple times to find new ideas and ways of thinking.

The Single Target Market concept,  I have learnt primarily from Dean Jackson. The advantage of this concept is that you can get to focus all your energies on just one segment of the market at a time and then Dominate it, before moving forward to the next Market.

Each entrepreneur,  product manager, marketing manager has multiple markets, that they can focus on and it is counter intuitive to focus on only one.

The reason I keep coming back to discuss on the single target market time and again is because I  use it myself and find new applications for it when analyzing different businesses.

A good way to analyse the relative economic values of each market and then choose the one which is the most lucrative. So if you knew what’s the life time value of a  customer and you knew that you had the potential to pick up at least 30% of the market then you could take a call on how you could go about investing.

So let’s take a B2B example where the Life Time Value of a customer is say $100000/- at a Gross Margin of 30%. Now let’s  assume that there are a total of 1000 potential customers in the segment you have chosen. The bottom 20% will never buy from you.  That leaves about 800 prospects.  Out of these 800 some are in pain right now, some will get into the pain stages over the next 5 years.

So your potential market yield could be $80million over 5 years or a gross margin of $24million. If you can earn $24 million what would you be willing to spend to get these customers. If on the other hand the other market segment can only do $80000 LTV per customer at a GM of 25% then the potential yield of this market is $64 million at a GM of $16 million.  So how much can you now spend to get the $16 million.

So that is the combination to help you choose which is the most promising market for you to enter.

If you have any queries, please raise them in the comments section. I would love to hear them.

Till next time then.

Carpe Diem!!!

P.S: If you are interested in getting a free copy of my “7 point checklist for B2B markets”, you can ask for it, by filling in your details below.

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Coaching – for changing the growth trajectory

coaching, problem solving

While I talk about a lot of things related to marketing, I also get stumped quite often on some problems. It’s good to know, what you don’t know or where you need assistance. A lot of times our ego does not allow us to confess that we also have limitations.

I learnt this lesson in college when I was doing my engineering studies. I did not understand the subject of Engineering Drawing and I failed badly. I was about to give up, but my elder brother insisted that I undertake coaching. With the coaching I liked the subject so much and took to the subject like fish to water.

Multiple times I have seen that a coach can change the speed and trajectory of your growth by solving the challenges, much quicker than if you had to solve them yourselves. This is not to say that I have not been headstrong in trying to solve problems myself and wasted a lot of time on it.

In addition sometimes the environment that you live or work in limits your thinking patterns. Sometimes you need to break through those patterns. A coach can help you achieve that because she is seeing things from “outside-in” for the things which you are seeing “inside-out”.

That’s where from time to time, I take coaching and / or also keenly follow the blogs/podcasts/videos of people like Jay Abraham, Joe Polish and Dean Jackson. Each coach has a different style of functioning and you need to see with whose thinking you resonate. This is important because if you try to follow or take coaching from too many people, you will end up completely confused.

While all coaches may be good, you need to find the one who is “Good for You”. Here I am mean both commercially and at your brain level. I need a coach who can explain to me in simple terms what are the possibilities. So someone who may be conceptually strong in solving problems, but can’t explain to me, doesn’t work for me.

Till next time then ….. climb higher with the help of a coach.

Carpe Diem!!!

Marketing Stamina – Revisited

B2B, life time value, Marketing, Marketing Stamina, persistence

On the 28th of October last year I had put up a post on this topic. If you are interested, you can have a look at it here .

The reason I felt a need to revisit this topic, came up because, I was analysing the average time it takes to get traction for a new product or service in the B2B market. If you are in the technology market space I would highly recommend you read the book Crossing the Chasm by Geoffrey Moore. It will give you a more detailed context to what I am talking.

However coming back to the B2B market – the key issue that needs to handled is corporate inertia. In most cases the people in these companies are fighting so many battles, that they don’t want to touch anything that’s not broken. Also because there’s so many approvals involved, they don’t want to risk the product / solution Not Working in their environment. Especially in case of technology solutions, most companies prefer to work with “n-1” technology because it’s stable and working. They don’t want one more fire in their hand.

The other thing which plays a role in my opinion, is that the customer wants to see your resilience. They don’t trust anyone approaching them new, for the same points as I listed above and in most cases they are already covered with an existing vendor who is providing decently good service. So until and unless the incumbent screws up some time soon, they won’t look at you.

So does it mean that you can’t get into business for the B2B segment.

You absolutely can, if you can plan for the long term. You ensure that you have enough persistence and finances to last you for a long duration. While I learnt the term marketing stamina from Dean Graziosi, I learnt the application of this idea through Dean Jackson. His thought process is like this – if you know the turnover rate of any market – say 5% – 10% of the people will change to a new vendor every year – and you have a focussed list of 1000 prospects then over the next 5 years at least 250 – 500 prospects.

Now depending on what you sell and what is the Life Time Value of a client, you will need to have the staying power to last through the 5 years with consistently reaching out to these customers. If you don’t plan for this, you will be in for a rude shock and you will do things out of desperation, which is never a good thing.

Till next time then ….build your marketing stamina before getting into a new market.

Carpe Diem!!!

What is the JOB that you want your campaign to do – 2

campaign, lead generation, Marketing, media

This topic was not supposed to be split into 2 posts but it so happened that today morning I was watching a YouTube recording of the ILoveMarketing Meetup Group where Dean Jackson was interviewing Paul Colligan on the topic of podcasting. For those who have not read my post yesterday – I was referring to the Clayton Christensen experiment where he talks about the JOB of a McDonald milkshake. I had used that analogy to talk about why this question is important when you are choosing media instead of blindly following others.

He made a statement similar to what I had made when I was discussing with the media company regarding people blindly choosing Instagram because they get followers faster. Paul narrated a story where he asked a prospect about what was the objective of the podcast that he was trying to make and the prospect said “downloads”. So Paul asked him if downloads from China do or if they were to come from Fiverr – would they meet the objective? Clearly the prospect got the message.

Since there’s so much hype about followers / downloads most people think the objective is to create followers or to get downloads. You need to have clarity on what is the JOB you want your campaign to do. Not multiple jobs. Just one job.

If you are going on any platform – not only social media -for business purposes, there has to be a clearly defined JOB that you want the platform to achieve. Then understand if that platform will meet the objective in the most cost effective way. This is important because you don’t have unlimited supply of funds – even if you have, it would be stupid to get an email address at $10, if there was a way to get it at $1.50.

Don’t get muddled in your thinking based on the hype of the media companies. Its their JOB to sell you on the positives of their medium, but its your JOB to determine, what’s best for you.

Till next time then.

Carpe Diem!!!