As I am writing this, I just got back from a client meeting after having done a proper analysis of their business. A couple of big issues stood out. I’ve made this one big problem myself, many times in fact.
I’ve sold to the wrong clients.
BIG mistake.
Here’s what I know.
Selling to the right customer is more important that all the marketing and sales tactics combined.
When I do an analysis of a company, I start by looking at a few factors that tell me which parts of the business are the most profitable.
There are lots of factors (levers) to look at, however, the first one I want to look at are:
1. Which markets are the most profitable (and the most potential)?
2. Which customer segments are the most profitable (and the most potential)
3. Which offerings are the most profitable (and the most potential).
Here’s a sobering truth.
All strategies are off to some degree. The question is by how much.
For example, when you focus on the wrong customer (or customer segment), it does not matter what you do, you will NEVER be able to tap into the full potential.
Why?
The wrong customer cannot afford you.
The wrong customer does not have the need (problem)?
The wrong customer does not have the urgency.
The wrong customer will never value what you do as much as the right one.
The wrong customer will not buy again.
I could go on…
To optimise for maximum growth, get absolutely clear on WHO you should serve, and who you should STOP serving. This is one of the most, if not the most important choices you’ll ever make for your business.
Tobias
