Presentation to:Houston Business Connection

Targeting High Yield Prospects

Presented by: Misty KhanAdvena Artemis LLC

11/19/10

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

Why Targeted Marketing

• Stretch Your < Fortune 500 Budget• Commodity Perception• Specialization Suggests Expertise• Concentrate Your Efforts

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!)

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

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

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 53 Avg.

Volume<100 101-

200201- 300

301- 400

>400

2 % Revenue

<1 1 – 5 6 – 10 11 – 20

>20

5 Potential Volume

<200 201-500

501- 1000

1001- 2000

>2000

4 CS Calls >24 12 to 23

6 to 11

< 5 0

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

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

Group Exercise

• Fill in your matrix – see example

(5)(4) + (2)(2) + (3)(5) = 39

WF Factor 1 2 3 4 55 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 AWF Factor 1 2 3 4 5 Score

5 Profit Margin % X 20

2 % of Revenue x 4

3 OTD Import. X 15

Questions