Editor’s note: Paul Kirch is CEO of ActusMR Inc., a Lewisville, Texas, business and sales consulting agency. Kirch can be reached at 214-295-6111 or at pkirch@actusmr.com.
Ask most business professionals why customers buy from them and you’ll hear a broad range of answers. If you go further and ask what their ideal client looks like, you’ll likely get a blank stare, followed by some educated guesswork.
In my first few years in sales, my boss at my new company told me something that struck me as odd. He told me that my job for the first six months was to take business from anyone that would give it to me. Six months? I couldn’t imagine I’d ever turn business away! He then told me that after that period, hopefully I’d build up a client base and slowly begin to approach certain companies. From there, the goal was to get to the point where I was targeting my ideal clients. At that point, I had no idea what an ideal client looked like, other than someone willing to spend money with me.
That first year with the firm was enlightening and empowering. I began seeing exactly what he meant. Those first few months were spent knocking on a lot of doors. I won a lot of new business but I also learned that it wasn’t all good business. As he suggested, at the six-month mark, I started to get busy with a small, loyal base of clients. I still sought new accounts but was more selective about where I spent my energy. I saw that certain companies demanded a lot of attention but never followed through on their end of the bargain. They either didn’t award me much business or they would commit to a project and then nickel-and-dime me at the last minute, threatening to back out. While I understand price negotiation may be necessary, there’s a difference between doing it once and doing it every time. In fact, some of the companies I worked with showed little respect for me or my company, abusing the relationship.
As I built a loyal base, I learned where I could push back. I looked for certain characteristics I felt defined my ideal client and never shied away from the hard conversations, even with the aforementioned abusers. I remember one customer who had asked me to bid on over 52 projects, always promising me that I’d win it. Multiple times I told them my company was not going to be able to continue to bid without having been awarded something. Finally, with company approval, I cut them off and told them we weren’t going to accept any more bid requests. Not long after, I received a call from one of their senior executives, asking why we were no longer accepting their proposals. It was clear he wasn’t aware of the volume of requests sent. We talked for about 45 minutes. I stood firm on my position but at the end of the call, I agreed to give them another chance. Over the next few months, they became one of my largest clients. In fact, they became quite loyal and a year later, offered me a multi-million-dollar contract.
When you identify an ideal client and channel your efforts toward them, it’s amazing what you can achieve. Going after any and all business can be frustrating and a drain on resources. However, if you can attract clients who see a need for your services; value what you offer; and respect the client-provider relationship, you create so many positives. For me, it wasn’t about the size of the account – even small companies fell into my classification as “ideal.” So what were my criteria? Here are the basics:
- They outsourced multiple projects.
- The types of projects met my company’s service offering.
- They felt my company filled a need.
- They respected my expertise and the value I brought to them.
- They treated my team with respect and viewed us a partner, not just a vendor.
- They were honest in their communication.
- They followed through on what they said they would do.
- They had a good reputation in the industry for paying on time.
- They were sincerely considering us for projects we bid on, not just using us for price comparison.
- I was able to work with or build a relationship with the real decision makers. I didn’t mind working with people who had someone else to answer to but I definitely wanted to make sure my relationship could extend beyond them.
Some of these items required time and dialogue with the potential client to determine but it usually didn’t take long. During initial meetings or even during the initial bidding process, it was possible to quickly determine what they would be like to work with. Would they be loyal, assuming they received great service?
Another process I put in place was asking my best clients why they bought from me. What made them loyal? What didn’t they like about my company or my competitors? That was some of the most valuable information I gathered.
Look for ideal clients in your business. What makes your best clients loyal to your firm? If you could reproduce your best clients, what would it mean to your company? Find out the why certain clients are the most valuable and implement a strategy to go after more of them. You may not feel comfortable turning down other business but your energy should be spent on projects that are good for your firm and your staff. In time, you will find partners who can grow with you - and grow you will.