Businesses need customers and without them, the business won’t last long.
The question is, what kinds of customers do you have? General Electric has routinely looked at its business, team and customers and put process in place to get rid of the low performers. Does your business deserve less? I would argue that it does not.
Why not invest the time to list your customers based on certain criteria and identify those A grade as well as those “D” grade customers? It will not only give you great insight to your business but also help you tailor your marketing efforts.
Different businesses will have different criteria to stratify your customer base, but let me suggest a few that will help you get started:
– Customers that pay their bills on time
– Customers you and your team enjoys working with them
– Customers that are a good source of referrals for your business
– Customers that understand that once in a great while, something may not go right. When that event happens, and the businesses owns up to it, the customer does not go on a rampage
– If you could start your business over again, you would want them to be a part of it.
Chances are, there are other things that you will add to the list. The trick is to actually get started on assigning grades to your customers.
Once you have identified your “A” and “B” customers, that is where you should spend your time. Give them great service and try to find out as much as possible so that you can get more of them.
Let your “C” and “D” clients work with someone else. That will free up your time for more “A’s” and “B’s” as well as help you sleep better at night (an added bonus).
TOP TIP – Adjust while you can
How do the numbers look? How are sales, team growth, and profitability. You need the metrics (and information) to be able to get back on, and ideally, ahead of, plan.
There is still time for you to end up the way you want it to but you need to ACT quickly.
What marketing needs to take place to hit your needed leads? What financial adjustments need to take place for you to hit your profitability goal (not what you sell, what you keep)?
Now is the time to review your budget and make quick decisions to take your business where it needs to go for the next six months. Don’t think about next year while NOW is still there for the taking.
