Choose Your Customers

Not all customers a recreated equal, not all have the same buying power. It may seem strange to say this but choosing the customers for your business is critical for your success. The good ones add to your reputation and credibility, the bad ones cost you time, effort and money out of all proportion to the rewards. The ideal is to look to build long-term relationships with customers and avoid the “one – hit” wonders.  When we start a business sometimes we take on customers that when we look back on should not have been taken on. They are just not worth it! Having said that sometimes winning an account has other longer - term implications that may make a poor account worthwhile.

4 Fs for success

Use these 4 Fs to select the customers you want for your business.

Fame:  Good and well known customers can increase your credibility and act as great references. Will your new customers add value to your business profile? Will they add to your credibility? Will they be good references? Will others find it attractive that you are supplying reputable organisations?
Fortune: Will you make money from these customers? Will they pay on time? Will they be difficult to service and over demanding in their requirements?
Fun:  Business is easier when it is fun and you enjoy working with clients. It is always easier to deal with the customers you enjoy working with. You are more likely to build long term relationships with people you enjoy working with.
Future: What is the business potential of the customer? What else may you be able to sell to them? The future potential of an account should also drive the resources that are put into that account. For example a small independent retailer may only have a tele-sales call a large retailer regular calls from an experienced account handler.

Spotting a bad customer

Poor customers may display some or even all of these characteristics:

• Low margin
• Always looking to reduce prices
• Constantly challenge aspects of your products or services
• Disruption to the normal business and other customers
• Slow or lengthy payment terms

How to choose customers

Choosing the customers you want can start by thinking about your existing customers. Think about he ones you really like and the ones you dread phoning or taking a phone call from. On a piece of A4 make a list of customers you like and customers you dislike and the reasons why.  What industry sectors are they in? Does a pattern emerge? The objective is to seek more of the customers you like and from the industries you enjoy working with.

Time after time I come across business owners who tell their sales teams “ we must have more new accounts” but do not tell them what makes a good customer. Here is an example that we can all relate to. If you supply office supplies and business equipment which customers are better for you? The ones who employ 10 staff in an office or the one - man band with no staff. Which should you take time to develop a relationship with? It may seem obvious, but you would be surprised at how often this gets overlooked in the rush to meet a target of so many new accounts this month. Quality not quantity is vital.

Where to look for your customers

Existing customers start with these.  Talk to them. Ask if they know anyone else, are their any other departments within their business you should be talking to.
Past customers, go back to all those that used in the past and have stopped. Find out why and what do you have to do to become a supplier again. Be selective if you were glad to lose them as a customer for any reasons do not go back!
Suppliers these have an interest in your success. Ask them if they know companies who buy your products and services.
Observation take a different route to or from work and watch for new developments. Business parks seem to be springing up all over the place.

None of these ideas cost money. Begin with these before considering other ideas such as buying lists etc.

Avoid grabbing at business, the business you grab will probably be unprofitable.

About GAP Management

GAP Management helps business owners and managers to focus their sales and marketing efforts to be more effective and to find win and keep customers, to grow their businesses and be successful whether they market in person, in print or on the web.

For personal help with marketing and sales to grow your business contact us on 01226 290288 or email Gareth@gapmanagement.co.uk