In the attempt to please all your customers, you may well find that you are losing your way with your profits.
Remember That Not All Customers Are Equal.
Knowing that you are making a profit out of your customers is vital.
Knowing the extent of the profits per customer is so important. Adopting strategies to increase the profit per customer ensures your business prospers. Customer profitability is the key to ensuring that a business grows.
Whilst it makes sense that you do all you can to satisfy your customers. There has to be a limit to this. Naturally, wherever possible you will aim to also delight your customers. But you should not do that to the degree that your business is losing money.
In the attempt to please all your customers, you may well find that you are losing your way with your profits. Remember that not all customers are equal.
Some will contribute to the profit line while others will lead to you losing money. For some, the cost of delivering the product or service to them does not make business sense.
Needy Customers Drain Your Time, Energy and Your Profits – Are They Worth It?
Some are so needy that they cost you more than the revenue generated by the transaction. Consider whether in your zeal to delight your customers, you are at risk of making a loss with some customers.
Action Step. Establish a customer profitability score and add it to your dashboard of KPI’s.
How Do I Know This?
Like you, I’ve been in the driver seat of a business, and found myself spinning wheels and struggling to manage people. The fear nearly killed me, and I burned out before I decided enough was enough.
Working with business owners as a Business Coach today, it never ceases to amaze me how much pain business owners are willing to endure before facing their fears and making a shift. You can read more about my journey from legal professional, to business owner, to #1 Business Coach here:
