We have three sweet spot clients Ronan.
Really?
Yes. And nobody seems to get it. I mean we have pitched to investors and, they push back. They don’t seem to understand it. They see it as a negative.
And why do think that is?
I’m not sure because we do have three distinct customer types.
Ok, I see that, but isn’t there one that is your ultimate Sweet Spot Client? One that is the perfect fit for you?
A customer who sees the value you deliver. And is willing to invest in you. A customer that will generate enough revenue and profit to make you happy. A customer that is easier to deal with. A customer who extracts the most amount of value from your service. And a customer who fits your culture and values?
I guess the answer to that is yes. But, if we just focus on those our fear is we miss out on potential opportunities. We do need new customers.
And it is a fear most of us face in business. But the fear can often result in the wrong behaviours.
What do you mean, wrong behaviours?
So, imagine you are running a larger organisation three years from now. You have spent three years targeting three Sweet Spot Client types. But, like so many others you haven’t really analysed the impact it is having on the business.
You have a large number of clients that consume your resources regarding people and time. They are low on value, but high on effort.
You want to understand the impact these lower value clients have on your profitability. And you are shocked by what you learn. The bottom 30% are unprofitable. They are a drain on resources and money.
Now you have to change the behaviours of your sales team. They have bad habits. A client is a client. And they have fallen in love with some customers.
So, when you suggest that they change and focus on higher-value, higher-profit clients. And fire some of their cherished current customers. You get pushback.
You are imagining a scene I encounter every week. It is a reality for thousands of organisations.
Ronan, you are the harbinger of doom.
I have been called worse.
So, you are clearly of the opinion that a narrow focus on your Sweet Spot Client is best. That is we select one profile and focus on acquiring more like these we will be better off.
For your business and concerning your overall business strategy. It seems like the best option. You become more focused. You can focus your team better. Your customers understand you better. And I am sure your investors will understand you better. It is a win-win.
But, we will be walking away from business and that is what confuses me.
It depends on how you look at it. For example, think for a second about a brand you love and trust. What springs to mind?
BMW
OK, and if I ask you what picture you have in your mind of a BMW customer.
High income, professionals. Image-conscious.
So, you have a solid picture and understanding of their Sweet Spot Client. Now, if someone outside their core customer walks on to a forecourt with €50,000 in cash and asks to buy a car (they just won the lottery). Do they say “no thanks you are not our Sweet Spot Client”? Or do they sell them a car?
I get that. So, we focus on a Sweet Spot Client profile. But, we will also attract others that are not a strict fit. And it is ok to do business with them.
And with more focus, you will acquire more of those clients you want to work with. It is a win-win.
Ok, so now I have to figure out which of the three is our best fit.
Yes, so let’s focus on getting this right first. We don’t want to build a Sales Process and Sales Pipeline Management Process around the wrong client profiles.
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Regards Ronan
Call me on +353(86) 7732201
Ronan Kilroy | Insthinktive Sales Leadership Ltd. | Blanchardstown, | Dublin 15, | Office 01 8220523
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