When we start a business or have a short time in operation, we only think about one thing: get new customers. However, as entrepreneurship grows, we understand that it is not about selling to everyone, but rather focusing on the most profitable segments. And even, that there are consumers that can complicate the expansion, and that it is better to avoid.
One of the secrets of the most successful entrepreneurs is that they focus more on retaining their current customers and increasing their purchases than on going out to expand their market without any filter. And the reason is simple: acquiring new consumer costs five times more. And in addition, many of them can not only not mean any income, but even cause losses.
This is the customer who spends hours touring a store and asking dozens of questions to a seller, but who, in the end, does not buy anything. Or that it may take months to make a purchase decision after a business proposal while asking for price adjustments or more details on the quote. These prospects not only mean a waste of time but are often employees of competing companies, looking for information. To avoid them, we must ask them at the outset what their expectations are and give them a clear answer about our real possibility of meeting them.
Consumers with this profile have only one interest: price. So they are only looking for promotions and discounts, and they are not interested in quality, warranty, or user experience. Unless you sell consumer products and your strategy is to handle large volumes of sales, stay away from this target. If you do not, you will not only weaken the value proposition and profitability of the business but its future expansion. So train your sales and marketing team to sell smart.
Although in the end, you can make a purchase decision, like the questioner, this type of customer is very demanding in time and money. And even once you have purchased a product and service, your level of demand may increase, which in the end makes the service process not only endless but also very expensive. That is why it is important that you clearly determine what the ideal cost of acquiring new customers for your company is, and that you establish clear limits from the outset for issues such as delivery conditions, refunds or guarantees.
These clients are the main enemy of new businesses since the first question they ask is what references or recommendations about our work we can offer. And generally, in the absence of sales or completed projects, they ask for discounts on the price of products, or special conditions in a quote. In addition to the negative effects on the productivity of sellers, this profile of consumers may end up affecting our value proposition and even the business model, despite the constant modifications we have to make to satisfy their demands.
The eternal dissatisfied
Finally, this customer is the one who makes the profitability of any sale impossible. Even if it takes hours to explain the characteristics of a product or how it should be used, they will always complain about a problem. Or, in the case of the provision of a service, and despite having signed contracts that detail the steps of each process, they will always ask for something else or be dissatisfied with the attention of an employee. These people can be useful when we are just starting, as they are ideal for detecting process failures and opportunities for improvement. But over time, it is better to avoid them.…