Thank you to those who make my Atlanta, GA (USA) visit so productive. I even wrote out this newsletter on the plane and at my hotel, I was so ahead of the game.
However, I can't find those notes, so this edition was completely rewritten. At least my trip covered training, client support, and meeting with several prospective clients.
In the last lesson, I shared with you strategies to develop buying relationships for less. Low cost prospects are critical for developing profitable buyers -- and that's exactly what your business needs to grow.
Today's lesson will address the critical question, "Are you pissing away money with the wrong customers?" It's a hard question, but 99% of business-to-business firms are so wrapped up with their product they don't stop to think who it is they are really serving.
Consultant, Author & Speaker
Ps. Do you want to meet to pick my brain?? I'll be in Kinston, NC (USA) November 24 to 26; Washington, DC (USA) December 30 to January 2; Toronto (Canada) January 3 till 6. Write to schedule an appointment.
By Justin Hitt, Strategic Relations Consultant, https://www.justinhitt.com/
Most sales managers tell their people, "Close every account you can, a customer is a customer." Your top line revenue grows month after month, but you're still not making any profit. Even worse, sales people are busy prospecting new accounts daily with dwindling conversion rates.
Analyze this for a moment. What does a customer cost to acquire? How much is a customer worth over time? Most companies don't know the answers to these critical questions. Do you?
You, like many business-to-business firms pay entirely too much to acquire a new buying relationship. Not because you can, but because you don't know how much a customer costs to acquire.
The wrong customers are those customers who even if you get them, cost too much to have. They are expensive to acquire, with little or no upside future potential.
What you are about to learn will make you lie awake tonight crying like a baby. Many of the customers you have today are stealing money from your business that would be better spent investing in profitable customers.
One myth says 20% of your customers create 80% of your profits. However, it's more like 20% of your customers create 120% of your profits. Are you worried yet?
For executive interested in creating and keeping profitable customers, there is something you can do. Follow these steps to waste less money on the wrong customers:
You could be throwing away money right now on unprofitable customers. Why waste your hard earned resources when you can have a reliable way to attract profitable buyers. When will you stop wasting money with unprofitable customers?
© 2005 JWH Consolidated LLC dba Center for Strategic Relations, All rights reserved.
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