Monday, July 12, 2010

Customer Management System - How to Win More Sales Must Include the Answer to This Simple Question

How to Win More Sales Must Include the Answer to This Simple Question

If you are in business can you answer who is your client? Sure, you may be thinking it is everyone I have invoiced and possibly, what a dumb question. Yet, are you sure that your clients are only relegated to those you have received payment for your goods and services?
The reason I ask this question is when you take the 30,000 ft. viewpoint of your business and the marketplace, you may realize that your clients extend beyond those who have fattened your bank account. Ram Charan in his book, What the Customer Wants You to Know, he suggests that you must know your clients; client if you want to win more sales. He believes that you need to follow your products and services all the way down the supply chain. For then and only then can you truly understand who your client really is.
This perspective is quite fascinating and quite daunting at the same time. Maybe you are thinking that you hardly have time to know your clients less alone their clients. And even if you did have time how would you find out who your clients' clients are?
The answer to the first question suggests that you must in place a simple customer management system where you can keep in touch with them on a regular basis. As to the second question, that answer is just to ask.
What I have observed in business is that many businesses do not know who their customers really are. This lack of knowledge creates missed opportunities.
Your customers come first as external (paying and non-paying) and internal (employees both currently employed and previously employed). The latter is far easier to determine than the former.
External customers can be separated into these 7 distinct categories:
  1. Active paying (those who buy every 90 days or less)
  2. Active non-paying (those who buy when the need arises)
  3. Non-active (those who have not purchased in the last 1 to 2 years based upon your customer metrics)
  4. Lost (those who are now buying from someone else)
  5. Direct Referral (those who refer new customers to you, but have never purchased your services)
  6. Centers of Influence (those who connect you with others reducing the number of connections and may also may direct referrals)
  7. Undefined (those who may mention your name in passing and you never physically connect)
Now looking at the above list, does this change how you view:
  • Incoming callers?
  • Incoming email?
  • Business networking events?
An old expression goes when you change how you look at things, the things you look at will change. In today's local to global marketplace, the ability to see things differently will separate you from everyone else and provide you with several competitive advantages including: increase sales; reduced costs and loyal customers.
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