They’re the ones that always pay you on time in full, and are always ready to start new projects with you. They’re probably even the same ones that you enjoy talking to and working with the most too. Whenever you deal with them things just seem simpler because of their positive attitudes, even when things get tricky.
What about your worst customers–do you know who those are?
They always try to get free things out of you; even when you go above and beyond to help them they still complain you’re too expensive. They usually expect a lot too, but they’re never satisfied. Everything you do for them drags out and takes at least twice as long. Whenever you work on something for them you come home tired and annoyed.
So how much time are you spending with your favorite customers versus your worst customers?
Think about it.
Why You Need to Fire Your Bad Customers
The Pareto Principle, also known as the “80-20 Rule” or “law of the vital few,” states that in many cases, “80% of effects are come from only 20% of causes.” For many successful businesses, 80% of revenue comes from their best clients who often account for 20% of their customers.
Businesses become unhealthy when their worst clients take up 80% of their time, when instead they should be spending that time cultivating stronger relationships with their best customers. Devoting too much time to bad customers easily leads to neglecting your best customers, which is how you lose them.
Examples of Bad Customers & How They Affect Your Business:
- High customer service costs: That can bleed your business dry.
- They don’t see the value in your product & complain about prices: It’s not worth the trouble, as they won’t bring you much benefit in the long run.
- You have to constantly fight to keep from losing them: So, let them go.
If you want to scale your business, you need to focus on the top 20%; your best customers. These people will be happy to pay more when you increase your prices or expand your services. They are the ones that renew their accounts easily. These are the customers that you want more of.
Easy Ways to Fire Bad Customers
As much as you may want to tell your worst customer to “F*** off,” don’t do it. Being a jerk will come around to bite you eventually. The easiest way to get rid of bad customers is to raise your prices, which will also make you more money too. This also prevents you from attracting more bad customers because you’ll probably be out of their price range.
If this doesn’t work, you can always refocus your product or service more toward your best customers to the point you won’t be able to serve the bad ones anymore. And then you can tell them, “Sorry, we’re discontinuing XYZ service.”
Where to Find More of Your Best Customers
Think about who your 3 best paying customers are.
What makes them the best? They could be the ones with the biggest accounts who spend the most; they may be the easiest to deal with and require the least assistance, or even both.
What do these customers all have in common? Are they in the same industry? Do they have the same size company? Are they all first time buyers or did they switch from another provider? What are their main pain points and what do they value? Who are the decision makers?
Don’t know much about them? Talk to them. Have a conversation with them about what’s important, challenging, and ask them how you could serve them better. Don’t avoid this. Pick up a phone and have a call with them; or better yet, meet them in person. You should be giving your best customers more attention anyways.
Once you understand what your best customers look like you can start setting out to find more clients like them.
You should begin focusing all your outbound prospecting on getting more of these clients and also create some inbound marketing content that caters to their needs.
How to Triple Your Sales By Attracting More Dream Customers
You need to figure everything out about your dream customers so you can get more of them. What do they read? Where do they like to hangout? Do they drink coffee or tea? The more you know, the better.
Once you’ve painted a picture of your dream customers you should focus all your efforts on finding more people like them. Craft your sales and marketing messaging around their specifics, and create an offer they won’t be able to refuse.
Now that you’re not wasting 80% of your time on the wrong customers; you can spend more time being extremely helpful to your best customers and attract more of them.
We hope you enjoyed this article. Please tell us what else you’d like to see in the comments below, or tweet us @LeadGenius.
SIGN UP for our Sales Intelligence newsletter to boost your #SalesIQ today.