Think of how much time and energy it would take to find out
exactly how many people in your city or region have a passion for sports and
fitness. Or how many of those people are also
pet owners, and with household
incomes between $50,000 and $200,000 a year.
This kind of information is very valuable, and that's why
direct mail websites want you to pay for targeted lists such as the one
detailed above. But, what most people don't realize is that simply obtaining
the number of people in a given area who fit a certain criteria is also extremely
valuable, whether you choose to purchase their contact information or not.
In order to sell you a list, direct mail sites have to tell
you the number of leads that will be included on that list. This means these
sites can act, in essence, as a free online resource for savvy entrepreneurs
looking to size their target market.
There are many ways that sizing a target market can help
entrepreneurs make informed business decisions, some of which have been
discussed in previous Jane out of the Box articles. This article will focus
specifically on how to use information obtainable from direct mail sites such
as InfoUSA and MelissaData to minimize risk in terms of new ventures and
expansion.
Say you're contemplating starting a new business. You have a
concept for an upscale climbing gym in a town where you know there's no
shortage of rock-climbing and fitness enthusiasts-but do enough of them make
enough money to afford your proposed membership rates? You might want to check
out the stats on one of the direct mail sites listed above, under the heading
of Consumer Lists, creating a list based on household income $50,000+ and using
'health/diet/fitness' as a category under a tab that represents Hobbies and
Interests/Lifestyle Indicators. When you
visit MelissaData, for instance, you will find a "Lookup" tab, including
a myriad of free lookups to represent certain data, perhaps even the specific
target you are seeking. The number you
get will give you a good idea of whether there are enough people in your target
demographic to get your new business off the ground.
Or, say you own a pet-grooming business with a solid
clientele, but have seen flat profits over the last few years. Your customers are always asking you if you
know of a good all-natural dog biscuit, so you've considered expanding your business
by creating your own dog treats, in-house. You've even had the idea of selling
them at other local businesses around town.
Before you sink the time and resources into developing this new
business venture, you might want to use InfoUSA to discover how many people in
your area have Hobbies and Interests in both 'health/diet/fitness' and 'pets/animals.'
After all, this is your target market. Most other pet-owners will just continue
to purchase their dog-biscuits at the grocery store.
When you find your results, ask yourself: Is this potential
market big enough to justify the funds I would need to float this new business
venture? (It makes sense to find out before you move forward-especially if
funds are already somewhat tight.)
Let's say you own a nightclub that's doing well in a certain
metropolitan area, and you're looking to expand. Before you make a decision on where to locate
your next club, it would probably make sense to do a basic demographic search
on singles between the ages of 21 and 40
in each of the areas you're considering. The answers you
get may confirm your intuition, and they may not. Either way, you'll have the
information you need to move forward with seeking the right location to support
the people in a given demographic to
make your next nightclub equally successful as your first.
There are many more ways you can use direct mail searches to
determine the size of your potential market. Once you become familiar with search
parameters on each site and put them to work in whatever way best serves your needs,
you can continue putting that information to use in making key business
decisions.
And, if the time comes when you want to move forward with
direct marking to your target demographic, either via phone or direct mail, go
ahead and purchase that list from the direct mail site of your choice. It's a
great way to thank them for providing such great information, free of charge!
Michele DeKinder-Smith is the founder of Jane Out of the
Box, an online resource dedicated to the women entrepreneur community. Discover more incredibly useful information
for running a women-owned small business by joining Jane Out of the Box,
available as a free membership. Jane Out
of the Box offers networking and marketing opportunities, key resources and
mentorship from successful women in business, and also consults with
corporations and government agencies, helping them better understand the needs
of an ever-growing number of women entrepreneurs. Find out more at www.janeoutofthebox.com. |
