Customer Profitability has a direct relationship between the price you charge and the time you spend on the assignment. Some customers may be very profitable and others may be costing you money. Your challenge is to know which customers are your most profitable and which are not. Likewise, determining early on in the initial contact phases between you and a new customer, to ask yourself the question, what are the critical factors in my ideal customer that will enable me to meet my needs and enable my customers to meet expectations and does this new customer have them or not?
NOT ALL CUSTOMERS ARE GOOD CUSTOMERS. Let me repeat that…not all customers are good customers.
While 20 percent of your customers may contribute to 80 percent of your profits, the question then arises, “what do you do with your least profitable customers and who absorbs your most valuable resource – your time?
Creating time to find their ideal customer is often the most neglected side of a Business Owners’ priorities.
Complete an ideal customer exercise… naming what size, category, industry, location and all other criteria that is relevant for your business.
This exercise will bring clarity to the customer type and sector you should be connecting with in your messages of branding and marketing…
How you brand and market yourself, knowing which customers to work with and which ones to fire will emerge from identifying your ideal clients/customers.
Then utilize this knowledge to focus on every aspect of your business that will give your customer the results they want from your product/service.
The best way for you to get more profit from your customers is to make them more profitable. Learn how work in collaboration with your clients to make them more successful and more profitable and in turn you will reap what you sow