Sell to Who You Can Help the Most
Talk With The Video
Summary
- I worked with a lady who had a tile business making $7.6 million in revenue and $5 million in profit.
- She sold tiles to homeowners, interior designers, and home builders. Home builders only cared about the price.
- I advised her to stop selling to home builders because they aren't the most profitable.
- Interior designers brought her steady customers and one-off sales to homeowners had the highest margins but were less frequent.
- She enjoyed working with interior designers the most, who brought her around 30 new customers per year.
- I suggested she focus on interior designers and expand that network from 30 to 300 designers.
- The key takeaway: prioritize customers who bring the most consistent value and focus efforts on serving them well.
Video
How To Take Action
I would suggest implementing a few practical strategies to grow your business or personal brand, based on the lessons learned from the tile business story. These steps are straightforward and cost-effective, yet highly impactful.
Identify Your Most Valuable Customers
First, figure out who your most reliable and profitable customers are. Look at your different customer segments and determine which group brings you consistent business with good margins. In the tile business, it was the interior designers. For you, this might be a specific type of client or customer.
Focus and Deepen Relationships
Next, narrow your focus to this key customer group. Spend less time and resources on customers who don’t yield high returns. Instead, pour your energy into nurturing relationships with your most valuable customers. This could mean offering them exceptional service, providing exclusive deals, or regularly checking in with them to ensure their needs are met.
Scale Your Outreach
Once you’ve nailed down your ideal customer, scale your outreach efforts. Set a goal similar to growing from 30 to 300 valuable customers. Use tactics like networking, targeted marketing, and referrals. For example, if you’re connecting with interior designers, attend industry events, collaborate on projects, and ask for introductions to others in the field.
Leverage Your Strengths
Finally, play to your strengths. If you enjoy working with a particular type of customer, double down on that. Your passion and expertise will shine through, making your service even better and more appealing to your target audience.
By implementing these strategies, you can optimize your efforts and achieve more substantial, consistent growth with minimal extra cost or time. Focus on the people who appreciate your work the most, deepen those relationships, and watch your business thrive.
