If you want to increase your customer base, be smart and target the types of customers you really want.
Tier 1 Customers are your ideal & highly profitable customers.
They bring new needs to you to service — typically because you have an established track record of successfully helping them. They challenge you to learn, stretch & grow — profitably. You want to PARTNER with this type of customer for mutual growth. (Identify and share characteristics of Tier 1 Customers with your team.)
Tier 2 Customers are good income providers.
They are content with your core products and services. They’re easy to service while you make a fair profit. You want to continue to serve as a trusted ADVISOR to this type of customer on how to further enhance their financial position through your line of products & services. (Identify and share characteristics of Tier 2 Customers with your team.)
Tier 3 Customers are break-even customers.
They consume time and resources. These customers frustrate you though they’ve done nothing “wrong.” You may continue to serve them as a trusted EDUCATOR & ADMINISTRATOR of their accounts, with the focus on moving them to Tier 2 if possible. (Identify and share characteristics of Tier 3 Customers with your team.)
Tier 4 Customers are “Money losers.”
They are rate & price shoppers, are never happy with your products or services, and require large amounts of time for little to no profit. They are not a right fit for you. You cannot continue to serve as a FIXER of their problems. Learn to say good-bye to them. (Identify and share characteristics of Tier 4 Customers with your team.)
Now take time to review your current customer list. Tag your customers Tiers 1-4. If you’re a bit bottom-heavy – i.e., too many Tier 3s & 4s, that may explain why you’re working so hard.
Work smarter not harder.
Copyright MMXIV – Liz Weber, CMC, CSP – Weber Business Services, LLC – www.WBSLLC.com +1.717.597.8890
Liz supports clients with strategic and succession planning, as well as leadership training and executive coaching. Learn more about Liz on LinkedIn!