3 Steps to doubling Your Profits in 180 days
3 Steps to doubling Your Profits in 180 days…
Did you know 20% of your clients make up 80% of your profits? These are your “A” list customers. Did you know that 80% of your internal resources are going to the least profitable 20%? These are your “D” list customers. What if you could double your “A” list, while dropping the “D” list? You could effectively double your profits and – get this – not have to add a single person.
1) List your best customers.
Can you list your top 10 customers? Most business owners when asked about their best clients can rattle off the top 3 or 4 without too much difficulty. Go ahead, take a moment and try it. By the time you get to 6 or 7 you will probably be struggling. In fact, you are likely starting to question what really makes your best client and injecting qualifying arguments like revenue, gross profit, ease of customer management, ease of sales or some other factor. Grading best customers can be difficult. Here is a link to a simple spreadsheet that you can use for this exercise. Uncommon Results Best Client Analysis System. Download and start filling in the important information.
2) Create a matrix of your best clients
Along with what your clients mean to you, list their characteristics. Include facts like how big are they (revenue and employee), who in the company made the decision to buy from you, their market segment, clients they serve and geography.
Inevitably, a "sweet spot” will develop in your client list – these are you’re “A” list customers. Once you know what customers look like in your “sweet spot”, it’s easy to find other companies that meet that criteria.
3) Direct ALL of your proactive resources towards companies that make up your A list.
Chances are your sales team, marketing efforts and support staffs are the most expensive overhead you have. If you take some time and redirect your proactive efforts and target ONLY prospects that meet your potential “A” list clients, the impact can be increadible. The hardest part is staying on course and ignoring the Siren song of C and D customers.
Do yourself and your company a huge favor and run some market intelligence to understand who the decision makers are within your “A” list customers then develop your strategy around pursuit of those prospects. For intelligence in the private sector, contact Uncommon Results at 800-515-5351, for federal contracts call 888-9-GET-isi.