Which customers are you attracting – Silk purse or Sow Ears?

10 Sep
2018
attracting customers

You cannot make a silk purse from a sow’s ear and you cannot build a sustainable business attracting the wrong customers.

 

Not all customers are equal and if you want to sustainably grow your business you need to be focusing on attracting and retaining the right customers.

The ultimate goal of effective marketing within the Grow Your Profit system is to build your loyal, high spending customers base.

Business owners who target and attract the right customers are seeing their business and profit growing significantly faster than business owners who discount or do not take a planned approach to acquiring the right customers.

Attracting Right Customers

In fact, too many businesses are attracting the wrong customers. This is resulting in high customer churn, i.e. not having repeat customers. The problem of a high customer churn is that it:

  • Hurts your bottom line,
  • Increases the number of customer complaints you have to deal with,
  • Robs you of your time to work on growing your business, and
  • Damages your business’s reputation.

At Grow Your Profit, we developed the term Customer Acquisition Treadmill to reflect this situation. This is where you are spending your hard earned profits chasing the wrong customers only to find yourself back to where you started.

Customer acquisition treadmill

If this sounds like you then do not despair. The team at Grow Your Profit we help you get off the Customer Acquisition Treadmill.

 

We believe there are four categories of customers. Okay there may be a lot more but our approach focuses on just these four initially. They are:

 

A: Loyal Advocates. They are high profit per purchase and insist their friends buy from you. Happy to pay more for the experience and service they receive.

B: Value Buyers. They want solutions. Price is a factor but not the main one providing they can see value for money.

C: Coupon Crowd. Price is king, and unless it is on special, you will not see these customers.

D: Daydreamers. They are forever in fact- finding mode, asking questions and constantly having to go away and think about it.

Attracting Right Customers

The targeting of your marketing has to be on attracting B, Value Customers. While we all want loyal high spending customers, it takes time. In reality these people come from your B customer base. The way you achieve this is to constantly deliver outstanding customer experiences and awesome offers that are profitable to you and enticing enough to have customers come back time after time. These three areas underpin the Grow Your Profit system.

If you want to learn how the Grow Your Profit system can help take your business to the next level, then contact us at results@growyourprofit.com.au or 02 8091 9435 for a free confidential discussion.

 

Pat Abraham

Managing Director

Pat Abraham
author

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