I’ve had an incredible day meeting wonderful friends and helping them pursue their dreams. One is a growing leader in their own Market Space and we had a great conversation today about the type of clients they are after.
In their market they target the top / crème (being the high value clients) with their main competition serving the lower value ‘mass market’ side of things.
Going after the best and delivering the best is their business model and whilst this sounds obvious on the surface; it’s much harder in practice.
They do less volume, make a far great Profit / Per Sale, their clients take longer to decide (as they are quite high-brow). Their clients also stay with them longer, purchase again resulting in long-term relationship value.
This takes a lot of maturity for them in that they must intentionally decide to IGNORE most of the market and focus on the top 10%. This is quite difficult in that they can see lots of volume going past that isn’t ideal for them, but part of them understandably wants it.
Where it takes discipline is saying NO to customers and focusing on the people that are just perfect for them. In having been through this myself, I can tell you that it’s quite hard saying NO to business! It’s hard, but it’s critical if you want to have a profitable business.
My advice and thinking? Don’t get caught up thinking you need to get every customer out there. Even though you won’t be able to achieve that as reality sets in, you don’t want that. It’s about having the right customers for you and you being the right supplier for your customers. When there is a great fit it paves the way for many profitable and successful times to come. Customers are happier, you are happier and everyone is getting what they want.
Also, you can expect more referrals coming your way too from the stronger relationship. Like my wonderful friend; ignore the bulk and go for just your customers. You will love it and it shall make you way happier!
Love your work, thank you for the read and stay awesome.
P.S. Image Credit to Fallout and Bethesda (with the wonderful Vault Boy). Also thank you secret friend, you rock!