For a growing business, profitable customers are essential. Knowing where your revenue comes from and which customers are driving it is critical. Sometimes the ROI is not where we think it is and until you start to ask some hard questions about revenue, profitability and where those customers came from, you simply don’t know the answer.
For many, having the information about where the ROI is coming from is a step-change for the business which ultimately drives the growth and success of the business. As a marketer, these are fundamental questions, because if we can fill the pipeline with more people that look like your best, most profitable, revenue driving customers, we can catapult those results forward.
Often, we think that our best and most profitable customers are those that we have the best relationships with. We enjoy working with them and we enjoy the output. That said, if the client isn’t profitable then it’s important that things are quickly turned around and addressed. We wouldn’t be in business for very long if we continued to work with those that weren’t profitable for us.
So, pull this back to marketing and we ask the following types of questions because we simply want to know what your ‘ideal’ client looks like. We want to know which sectors they operate in, specialist areas they concentrate on and what similarities they have to your other profitable, revenue driving customers. We want to know because we want to find more like them. This is one of the fundamental processes of profiling. Know and understand who your ideal client is, create segments if needs be and find more like them, because they’re much more likely to spend more and be ultimately drive more revenue and profit.
For one client, the similarity might be the organisational structure or culture that drives the customer’s organisation to buy their product. For others, it’s the type of work they do or the sector they operate in. Sometimes the answer is obvious, other times, there needs to be a bit of work to find the answer – such as buyer profile workshops, market research or financial analysis.
So start asking those hard questions, do some revenue analysis, build a really clear profile and then set some targets. Whether you’re selling products or services, the methodology is the same: you’re looking at who buys more of the products and services that provide a higher margin. Apply the learning’s to your marketing (and sales) and we’ll be chasing better quality leads with higher returns. You’ll get where you need to go faster and as a marketer, it makes our job easier. Simple.
If you’d like to know the questions we ask, give us a call and we’ll talk about it over a cup of coffee (or tea).