One of the questions people ask about our service is, “What can you do to help me grow my business that I can’t do? There are several answers to that question, but perhaps the best answer is we can provide you with a list of your competition’s most valuable customers. The customers that buy the most. If you possessed such a list, can you see ways it could be used to grow your business?
A little background. The nature of business is that you and your competition share a sales territory—each of you using the same basic tactics to grow your businesses. Having a list of your competition’s most valuable customers is ONE example of the superior tactics we offer manufacturers and distributors, but we’ll stick with that one to drive our point home.
In our experience, businesses use a variety of ways to classify customers. We use two classifications, Ideal and Non-Ideal. In our system, ideal customers are the customers that make up the top 20% as defined by the 80/20 Rule; the customers that buy 80% of the equipment and aftermarket products and services sold in your sales territory.
If you do the math, you’ll see why. The Ideal Customers spend at a minimum, $16 for every $1 spent by Non-Ideal Customers. That means you have to close 16 Non-Ideal Customers for every Ideal Customer to generate the same sales revenue. So, think about it! What would happen to your revenue, profits, and market share, if you could focus more of your sales efforts on Ideal Customers and less on those pesky Non-Ideal Customers? The choice is yours.
You might profit from knowing more about our other superior sales tactics, too.
If you’d like a list of your competition’s Ideal Customers, we ought to talk. To schedule a conversation, click here.