MAKE MORE MONEY BY DUMPING SOME OF YOUR CLIENTS

T G NORRIS | Architectal Design Services
T G NORRIS | Architectal Design Services

Client Segmentation JAREDA | Author:Tom Norris

Unless you’ve done it already, you have no idea of how good it feels to get rid of clients that have never contributed to your company profits.

When I first started my business career back in the mid 70’s I had absolutely no idea about marketing or running a business. Back then there were few books or internet where you could research on best practices for running your own business so like most entrepreneurs in this period I had to learn the hard way.

It’s now 2018 and as I get to speak with hundreds of business owners each month I can’t help but notice that despite the multitude of information available, many do not have any sort of filter in place to weed out useless clients.

The sad fact is that clients are not equal and whilst some may be a huge benefit to your business others will simply drain resources. Imagine if you will that you have two different categories of clients where one category increases your bank balance and the other category does not. Clearly, if you wish to grow your business and make a bit more money then you need to focus on clients that allow you to bring home the bacon rather than those that just allow your business to tick over.

In my particular case I quickly realised that I could charge more for the same service if the clients were more professional. By professional I mean that they lived in better homes and presumably because they earned more money they had more money to spend. I tested my theory over and over by upping my charges when I visited clients in better neighbourhoods and found that my quotes were still accepted. Within a year or so I focused my entire marketing efforts on more professional clients.

Of course, not everybody works these things out and continue to offer their services on a first come first service basis which is a recipe for staying broke.
The sooner you start looking at your client base from the point of view of who gives you money and who doesn’t then the better off you will be. The fact is that once you start categorising clients you will soon see which type of clients are really good for your business.

When it comes to existing clients only hold on to the ones that give you a higher than average return. As for the rest, dump them, and unless you’ve done it already, you have no idea of how good it feels to get rid of clients that have never contributed to your company profits.

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