Bob’s Paving called me in to help because they were losing out on bids. They were focusing their efforts on general contractors. The general contractors were most concerned with cutting costs. They would solicit three bids and then almost always go with the lowest offer. I advised the sales manager at Bob’s Paving to minimize their efforts chasing contractors and focus instead on developers and business owners. These were the prospects that owned the properties, and therefore had a vested interest in the long-term upkeep. Members of the sales team at Bob’s Paving approached these prospects and positioned their company as a quality solution. They also agreed to guarantee their paving jobs for five years, something their cheaper competitors would never do. As a result of my advice Bob’s Paving business exploded. Their revenue was up by more than 50% over the previous year!
- Do you know who your most profitable clients are?
- Can you define the unique qualities that make a customer profitable for your business?
- Are you calling on key decision-makers who understand & embrace value?
- Are you willing to walk away from customers that only care about the lowest price, or worse yet, COST your company money?
Once you have answered these questions, you can develop a profile of your ideal customer and then target your prospecting to pursue those that fit that profile. In my business, I know that my ideal clients are: mid-sized companies in business-to-business complex sales, where their average salesperson is earning a six-figure income, the company has a track record of investing in training and development, they have a vested interest in protecting their reputation in the market place, they are in a growing industry, they have a small HR department, and I have access to the C suite.
Once you identify the qualities that your best customers have, you can focus your prospecting efforts on companies that fit that mold. It goes without saying that targeting clients who do not have these characteristics is a recipe for frustration and lost sales.