I spend a lot of time watching the world of sales. I find it really interesting how salespeople decide who they’re going to call on. One of the things I often notice is when given a choice salespeople have no idea who they should call on, or whether the people they want to sell products to are profitable or not.
It’s usually not the fault of the sales person. Too often management has not given them a path for who and what they should sell. That’s the topic of today’s video. Today we’re going to talk about how to focus your sales people’s efforts in calling only on the customers who make you the most money and are the most fun to work with.
You know, I’ve spent a lot of time in the world of sales. I find it really interesting how salespeople decide who they’re going to call on and why. You know, one of the things I often note is that when given a choice, salespeople have no idea who they should call on, or whether the people they want to sell products to are profitable or not, ’cause sometimes they don’t even care.
You know, it’s usually not the fault of the salesperson. Too often, people in management, like us, have not given them a path for who and what they should sell. So that’s the topic of today’s video. Today, we’re going to talk about how to focus your salespeople’s efforts in calling on the customers who make you the most money, and are the most fun to work with. So how’s that sound? So let’s jump right in.
- First thing we wanna do is start with knowing what a best customer looks like. And there’s two things you need to do here. One is you have to understand the demographics of what that best customer is. What industry are they from? What’s the size of the business? How profitable is the business? How many employees they have? Where are they located? Those are all the things that we all know about demographics, and frankly, most of us do an okay job with demographics when it comes to profiling who our best customers are, if we do that at all. But the second thing, which are the psychographics, and the psychographics are what makes them fun to work with? What’s their mindset? How do they think about things? How do they approach the world? These are the things that are really important, because, frankly, that’s going to determine whether you’re having fun working with your customers or not. Now, please don’t tell me that you don’t care whether you have fun working with your customers or not, ’cause the truth is the customers that you have the most fun with are the ones you give the best service to. The ones you have the least amount of fun with are the ones you give the worst service to, and because you’re giving them the least good service you can, it’s often, what happens is they go around and badmouth you, because you’re not giving the type of service they want. So you’re better off not dealing with them in the first place.
- So number two, how do you know who the best customers are? Well, demographics and psychographics are a good place to start. But I want you to start with your own data base. First, I want you to do a profit and loss statement on every customer you have, and I want you to figure out who makes you the most money. Now, you may find that the customer who makes you the most money is not the one you thought it was. The second thing I want you to figure out are who are the customers you most like working with? Now, these are the ones you want to clone, and these are the ones that you want to move into the next stage of having your sales staff only call on this type of customer.
- Now, cloning requires two things. First, we already talked about this, you need to do profit and loss statements on your customers, and you need to know who are the ones that are making the most money. The second thing you need to know, is you need to know what products make you the most money, and you want to make sure that those customers are buying the type of products that you’re selling and pushing, and promoting the type of products that make you a lot of money. Now, what you wanna do after you’ve done this is you want to say, “Okay, here’s what makes us “the most money. “Here are the customers that we like working with the best, “and here are our most profitable customers.” Now we wanna find out what did this group of customers all have in common? Once we figure out what they all have in common, we can go back and then do a demographic and a psychographic analysis on these customers, and say, “Here’s the profile, or the avatar “of the customers that we absolutely wanna deal with, “and the ones that make us the most money.”
- So it’s really important that we know what the profiles are for both customers. It’s a really thing, and you’ll only let your salespeople call on this type of customer. Now, this is a really hard thing to do, because your salespeople are gonna find all sorts of ways to call on people outside of this group. Now, the only time you should ever let this happen is if your marketplace, and where you’re trying to sell isn’t as big as you need to have it be. But, otherwise, and this is true for most businesses, especially when you have a small niche, you only let your salespeople call on the type of customer who you love doing business with, and makes you most of the money.
- So here’s the steps you have to take.
- You must be disciplined in figuring out who your best customer is. Now, when you’re doing your analysis about who the most profitable customer is, and what the most profitable customer line is, don’t get caught in trying to get to 100% accuracy. Right now, we’re talking about hand grenade numbers, 70% is close enough.
- We don’t need to get to the last penny. We need to know how, have an idea about who our best customer is, not have it absolutely nailed down. Because the truth is, you’re gonna have a bunch of people that fall in this stage, and not all of them are gonna fall into customers you like doing business with.
- Now, you wanna make sure that you monitor who your salespeople are calling on, and when they start calling on people who are B, C, or, boy, I hope not, D customers, you have to pull them back in, and say, “Hey, these are the type of customers, “give me your list, tell me why these are the people “that we want to be calling on.”
- Now, when you only allow your sales staff to call on A customers, what do you think is gonna happen? You’re gonna start doing business with people who make you the most money, and are the most fun to be working with.
- And while you’re at it, make sure all of the people you call on sit in the same niche. When you’re talking about demographics, you don’t wanna have somebody from the printing business, and then somebody from the financial services business, and then somebody from the construction industry, those are all different niches. You wanna be more narrow, so people know who you are, and it’s easy for the customer to figure out you’re the right company for them to do business with.
- So the truth is, sales are faster and easier when you know the ins and the outs of the people you sell to, and why they’re the best prospects for you to be selling to.
Well, that’s how you put together a great sales program. What do you think? Why don’t you scroll down and leave a comment below and while you’re at it, download our free Ebook on strategic selling. You’ll get all of the detail for I covered in this short video.
This is Josh Patrick. You’re at the sustainable business. I hope to see you back here really soon.