Making a profit can also be about stopping doing things.
Profile your ideal customer:
- They get what you are offering,
- They pay on time
- They are generally great to deal with – You enjoy dealing with them!
Contrast this with your difficult customer:
- They are always slow to pay.
- They complain about your service and/or product all the time – you suspect that this is to avoid paying you
- They are always looking for discounts and are focused on price
- They soak up vast amounts of you and your team’s time.
Review your customers and “ABCD” them.
A’s are Awsome! We want as many of these as we can get.
B’s can be converted into A’s over time.
C’s are “can’t deal with” customers – give them to your competition
D’s are “dead” again let your competition have these
The time you and your team waste on C and D customers is much more profitably spent on servicing your A and B customers and getting more A and B customers.
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