I put together another quick video about creating your ideal customer profile – but this time, we aren’t just sorting to create a single ideal customer profile based on the client attributes. I want you to start thinking about modeling your customer attributes by your major financial metrics – revenue, profitability & cross-sells (this is crucial if you are an agency).
As you work through ranking your clients according to these metrics, I wouldn’t be surprised to see a different profile for each financial metric. High revenue customers aren’t always the highest profit. And since we have a mission of more revenue, more profit and more happy, it is really, really important that you end up with a customer mix that brings you all three.
Hey, gang, it’s Tim. I just want to talk a little bit more about your ideal client strategy. If you are an existing business a great way to figure out what your ideal client strategy is, is to look at your existing customers and break them apart. Make sure you break them apart by attributes as we already talked about that, but I want you to think about three great things to organize this process. Number one, think about by total revenue. What do your highest revenue customers look like?
Number two, break them apart by profitability. Who are the customers that you made the most money from? This might be a harder calculation if you have not been doing things like tracking hours and costs, but try the best you can because this will make a big difference in understanding the profile of the ideal customer.
Now, thirdly, what I want you to think about, especially if you are an agency, think about those customers that you have been able to cross-sell. So, for instance, if you sell search services were you also able to get them into retargeting. Looking at the profile of the customer that becomes a cross-sell customer is a terrific way to store it, because once you understand the attributes that are likely to be associated with the customer that buys multiple services, as you land more of those, those customers become increasingly valuable over time. That’s really, really important.
So, remember, sort all of your ideal customers by revenue, profitability, and cross-sell. Thanks so much, take care. See you soon.