Fire Your Customers

       Increasing sales may not be good for your business. Are you crazy, you say? Not at all. We often are concerned that we have more customers than ever before but aren't making more money. There is a very easy answer. The solution can be found in an analysis of your customers. There are a certain level of customers or clients that make you money; about 20% and a group of about 10% that are costing you money. These are the one time buyer or the small quantity user. Costs that are amortized across the whole sales process decrease per unit when tied to larger quantities. That means that the 80% of small customers are costing you more than you are making.
       You need to analyze your customers to see which group they each belong to. It is important that you direct your best marketing efforts at the 20% of customers who are improving your bottom line. Your middle group probably tends to be very loyal so special attention is not necessary. The bottom group are the customers that you fire. You can easily reduce your number of un-profitable clients by increasing minimum orders or convenience fees. In time your customer list will contain fewer names, but they will be the most valuable.
       Doing a SWOT analysis and ROI study will show you where you should direct your best efforts.  Losing a customer who is costing you money is no loss at all.  Find your losers and eliminate them.

Dirty Windows

I was recently strolling thru a local shopping center window shopping. One of the shops was a pet store. I would usually go in to see the critters; this time I didn’t. The windows were very dirty. Not just a few finger prints but real dirt 5” high. It actually made the store look it wasn’t open.
That brought to mind how you present yourselves. Not your personal style, there is a lot of information available about that, but your business style. What do your current, and more importantly your future customers think when they approach your business? Is it welcoming?

The first thing a client will see is the look of the premises; are the gardens well tended, is the signage good, is the parking lot clean. The next thing is your door; if its glass is it clean, if not is the paint fresh and clean. Your lobby or reception area are next; carpets clean, plants healthy, inviting chairs, desks not too cluttered. If you are in retail your customers will want to see clean, well-lit areas, good signage, and an easy to navigate floor plan.

The response may be subliminal, but it will color your relationship. They might just decide that your lack of attention to your environment indicates will be reflected in your work.

If you have had tunnel vision about your work take a minute to look around. Try to see your space as a customer might see it. You need not invest a lot of money for your work space, but a little thought and awareness will definitely be returned in your bottom line.