Time Vampires VS. profitable accounts
What do you want? More customers, or better customers?
More customers means the phone is ringing and there is a flurry of activity. But very often you are just adding those low price-focused tire kickers who don’t become buyers. And when they do become buyers, it’s very often at lower margins.
Better customers means that our messaging attracts people who want a trusted expert. They are willing to pay more for true value and are more interested in a long-term relationship.
Think about those two profiles as we revisit the two avenues toward the same goal of “more customers.”
First, there’s the model of what I call the “brand-assisted one-two punch.” We promote the brand on the radio and/or television, and we present the owner of the company as likeable and approachable, and then we use that as a foundation for selling at higher margins.
Keep in mind that customers attracted by low price and offers--no matter where they come from--are going to be more expensive with each passing day, not less expensive. And as I mentioned, it’s harder and harder to hold margins because the people who respond to those types of marketing endeavors are exactly the type of customers who are more inclined to be the Methodical, Penny-Pinching, Coupon-Clipping, Price-Gouging, Bid Shopping type of customer. And that’s the type of customer who’s going to gobble up your time and beat you up on price and want to gather four bids, or shop five different sources for the item in question. That’s the kind of customer you HATE. I’ll bet you’ve had a conversation in the last couple of months about how a certain customer beats you up and sucks your time. You’re going to end up doing the job and not making any money off of it. My question to you is why you spend so much of your marketing energy attracting those customers.
The ideal customer you want is the customer who just wants an expert in their corner whom they’re willing to trust and they’re willing to pay more for the value you build into what you offer.
That coupon-clipping vampire wants all that value, but he takes the cotton and puts it in his ear whenever you start talking about justifying your higher prices and margins.
So, target that relational customer who is willing to let you make your margins because you are that shopper’s trust expert.
This article was written by my brilliant partner, Ray Seggern.
Morty Silber, CEO
Mad Strategies Inc.
a Wizard of Ads Partner