We have markets with low margins ”” what markets should we focus on to have better margins?
Thoughts of the Day: Finding the best customers for your business can feel like looking for a needle in a haystack. Sometimes old, loyal customers may not be that great anymore ”” give them an invitation to try something new. Make a list of what defines best for your company. Do your homework on what customers want most and are least able to get. Build profits through effective, directed selling supported by a strong marketing campaign.
Start with the premise that all customers are not equal. Get on with the job of figuring out which customers are worth the most to your business. It probably isn”™t the most demanding ones, even though those are the customers that come to mind first because they”™re the most vocal.
Make a list of criteria to help everyone identify who are your company”™s best customers:
Ӣ willingly pay their bills on time;
Ӣ value what your business provides and want more of that;
Ӣ occasionally come forward with requests for something new that is within your companyӪs ability to produce;
Ӣ understand and accept the need for periodic price increases;
Ӣ introduce you to new prospects;
Ӣ sing your companyӪs praises; and
Ӣ are generally respectful and appreciative.
Get more of these kinds of customers and it probably gets easier to hang onto employees because they feel more rewarded for the work they do. It gets easier to find additional similar customers as everyone in your company comes to know what to look for. Law of attraction ”” like finds like ”” comes into play as your company is introduced to your customers”™ connections with other like-minded folks.
It”™s worth periodically reviewing your list of customers against your best customer criteria. As business conditions change for all of us, it may impact who qualifies for that elite status of “best customer.”
Dig into old customers who look like they”™re on the decline. Find out what is causing the decline ”” and whether or not it”™s worth addressing. Every customer has a life cycle, something like dating, from introduction to getting to know each other, to working closely together, to taking each other for granted, to moving on to the next new, hot opportunity. If that”™s what happened to some of your customers, figure out if it”™s because your company isn”™t keeping up with the market or if what”™s a hot opportunity for your customer just isn”™t in your company”™s wheelhouse and it”™s time to let go.
Dig deeper with best customers. Get to know what makes them tick, what they”™re working on next and what challenges and opportunities they”™re facing. Try to move from a customer-vendor relationship to partnership status. As an insider your company is likely to find out early what”™s happening in your customers”™ world. You”™re likely to be asked to help solve problems that your customers are facing. And that information can give you a head start on being first to market with a new valuable offer.
Build recognition programs for your best customers to let them know you appreciate them as much as they seem to appreciate what your company can do for them. Invite them to join you at events and go to activities that they attend. Find out where they get their information from and make your company highly visible there. Test offers with them ”” if the “hook” works for them it may work for other, similar suspects. If they are willing, feature your best customers in ads recognizing how working together has resulted in better solutions that others might be interested in.
Recognize the importance of timing and fit ”” being present with relevant information exactly when a prospect has a need. Keep in mind that with today”™s communication tools, the thirst for information is going up, not down. In a world with the ability to put information at our fingertips, the ability to deliver exactly what someone wants, just when they”™re looking for it, has never been greater. The companies who master the skill of presence and applicability will dominate at the game of getting the best customers for their business ”” and that can lead to growth, greater profits, and the highest quality relationships. Who wouldn”™t want that?
Andi Gray is president and founder of Strategy Leaders, Inc., strategyleaders.com, a management and business-consulting firm. She can be reached by phone at 877-238-3535. Do you have a question? You can reach her via email at AskAndi@StrategyLeaders.com.
