Monetization Strategy: Buyer Targeting Flashcards
The factors involved in Buyer Targeting
Differentiation
Market
Persona
Channel
Differentiation
Differentiation is an advantage that a business has due to some unique technology it possesses or a process that it can execute better than others.
Differentiation importance
It creates value that can be monetized
It breeds loyalty to create repeat transactions
It protects the business from price-driven competition
Market
In the context of monetization, a market is a group of customers that have similar budgets and can be targeted by the same sales and marketing strategy.
Market Importance
It sets the perimeter of focus for the business – too many tech companies have failed trying to sell into every possible market. Each market has unique needs and customer budgets.
It enables unique product differentiation that helps exceed customer expectations. A customized product and sales process is more likely to exceed expectations.
How does differentiation map to the eventual sales process
Company Strengths are mapped to a Market Segment, Persona, which maps to a particular client budget, which maps to a particular Sales Process
Persona
In the context of monetization, a persona refers to the demographic traits and behaviors exhibited by buyers across the entire journey from acquisition, to in-product usage, all the way up to post-purchase support and relationship.
Persona Importance
Purchase Experience: Sales and marketing operations for acquisition
Product Experience: User experience during in-product usage
Customer Experience: Relationship during support and ongoing account management after sale.
Secondary Stakeholders
Other stakeholders not involved in bying process who an influence buying decisions and cost structure of the company
Two types of personas
demographic
This type of personas are based on some demographic attribute e.g job title, location, etc
behavioural
These personas are based on some behavioral attribute, e.g how they discover the product, how they use it
Channel
In the context of monetization, a channel refers to the means to acquire customers.
Channel importance
Dominating a channel is important to extract maximum profitable growth from it.
Keys to dominating channels
Cost - i.e., cost of acquiring a single paid customer
Volume - i.e., how many customers can be acquired through this channel
Cycle Time - i.e., how long it takes a prospect from exposure to paid conversion
Saturation - i.e., the point at which a higher acquisition cost has to be paid in order to acquire the next customer. This is the start of the saturation phase though customers can still be acquired. Towards the end of this phase, it becomes hard to acquire the next customer without raising the cost exorbitantly.
