By Andrew Wall, Sandler Training Milton
Not all customers are created equally. You have probably heard of Pareto’s Law or the 80/20 rule. In sales, 80% of your revenues will come from 20% of your customers. Companies need to analyze these 20% customers to understand the demographics and psychographics of these “sweet spot” clients and then identify prospective companies that look similar.
Demographic markers can include the number of employees, number of offices, revenue per year, and their location relative to your company.
Psychographic markers may include a willingness to use external experts.
Once you have identified these important prospect characteristics, you need to create your prospect list by utilizing LinkedIn, Industry directories, or purchasing a list from Info Canada or Zoom. Now that you have created your “ideal client prospect list”, you need to start prospecting.
Gaining new clients but losing existing clients out the back door is frustrating. With your 20% clients identified, make sure you are servicing them exceptionally and maintaining contact with them regularly. Depending on your product or service, you may be meeting with your most important clients quarterly, semi-annually or annually. Ensure you ask them how you are performing in their eyes, what has changed in their business, discuss what is new in your business or other products or services they are not utilizing then develop an action plan for your next steps.
Happy clients are a great source of referrals as long as you ask them. Start to work “smart” and not just hard at keeping your most important clients and acquiring new ones that look just like them. Happy Prospecting!