Not all customers are equal.
Some strategists suggest that businesses could and should get rid of up to 80% of their customers which would result in a minimal loss to sales and profits.
Sounds crazy doesn’t it?
But if you think about it and conduct some basic analysis, it could well be the case for you. Let’s be honest. Some customers are a pain in the ass. Some are truly amazing. The rest are kind of in between…
The rationale for this somewhat alarming idea is that the top 20% of customers deliver 80% of the profits and sales to a business. The other 80% of customers do not add much value at all.
Often, these customers do not value what you do. They are not loyal. They want the cheapest price. They frequently complain.
Why would you even want to serve those types of customers?
Because you get the customers you attract to your business through your positioning, communications, and messaging, it’s important to get this right. But how many businesses out there focus on winning more high-value customers? Not that many, I can assure you. Rest assured, if we work together, we will discuss this in detail as it influences how everything else flows. This conversation is one of many that takes place during the strategy phase when we will define exactly who your ideal customers are. We will then position your business to attract those ideal customers and go after them with everything we’ve got.
My business is no different to yours…
I typically work with clients that have been in business a few years and they are looking to hit that next big turnover milestone, whether that’s £1m, £5m or £50m. But turnover is not the only thing that makes an ideal client for me. I love working with small- and medium-sized businesses and business owners that really want to grow and develop their businesses and be the best that they can be. I also choose to work with a passionate business owner over a large corporation every day of the week. Whilst I’ve worked with global brands in the past, my heart and soul isn’t interested in helping more corporations like Suzuki go from £1 billion to £1.2 billion. Driving significant growth for small- and medium-sized businesses is where it’s at for me.