At companies that ask me to help them increase their sales, the first task I ask them to complete is to define their perfect client. Few can do it. And those who attempt are often frustrated to find that the definitions differ greatly among managers. For any sales organization to be successful, there must be a definition of the perfect client that drives all sales activities.
Companies Must Define Client Characteristics
Companies or sales organizations must define their perfect client. These definitions should be based on the best case scenario. Without a clear definition of what is a perfect client, sales teams rarely focus on the prospects that are really the most important. Why spend time and expense on a client that doesn’t fit your company profile? Sales professionals should be able to laser in on the right prospect. Without a clear definition that is shared amongst the entire organization, don’t expect that to happen.
What Does A Perfect Client Look Like?
Perfect clients can come in all shapes and sizes depending on your product or service. Bigger always doesn’t mean better. Often times small, consistent clients are the perfect fit for companies. Perfect client profiles should include business type or SIC codes, annual revenues, re-order potential, location to your offices, quantity of purchases or annual revenues and who they currently purchase from. By defining these items as well as others, companies can provide their sales teams with a target market that is most likely to produce profitable customers.
Where Do Companies Find Perfect Clients?
Many times the best place to look for what makes a perfect client is your own client database. Look at those clients who bring you the most revenue. Be careful not to confuse activity with revenue. Many clients might make you busy, but bring little revenue to the bottom line. Those are not perfect clients. Those are clients who should be avoided or sold to as a last resort, to make way for more profitable clients. Perfect clients should use products or services that are best suited to your process. They should also include clients with a high likelihood of repeat or continued business. Most long term customers are close to the perfect profile. The fact that they have established an ongoing relationship bears testimony of their fit for your products, processes and pricing.
Perfect Client Profiles Lead to Success
By defining the prefect client, companies are also forced to review and analyze their own products, processes and pricing. Outdated products or pricing schemes lead to less and less perfect clients. When the amount of perfect clients becomes too low, it’s time for companies to re-evaluate their business. Advances or changes inside most companies is a result of realizing that their traditional clients are getting too few and far between. The Perfect Client Profile helps companies not only market and sell to the right prospects, it helps them keep firmly rooted in what the market demands.