Classify your customers to grow sales.
This is one in a series of articles on approaches to
enhancing sales performance. The articles include presentation skills,
cold calling, closing, questioning skills, territory management,
progressing the sales and many others.
Divide your customers into three groups;
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New Customers
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Emerging Customers
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Established Customers
Each of these groups has very different needs so as a
proactive salesperson you need to satisfy these needs and do it as
profitably as possible.
New Customers
This group has just decided to use your product or
service and each customer is still evaluating the relationship. There
is a strong chance that, if they don't like what they happens right at
the start, they will use another supplier next time. Many consider this
first order to be a trial. Initial experience counts for a great deal
with new customers. So much so that even a seemingly minor customer
service or fulfilment problem can have disastrous effects on the
relationship.
As a salesperson, your objective is to help them become
comfortable working with your company. You should monitor the first
transaction very closely to ensure it runs as smoothly as possible.
Make sure that your customer has realistic expectations regarding
deliver or execution of the business before they agree to buy. Make
sure you follow up to discuss overall customer satisfaction. Then make
sure you get the next piece of business, too.
Measure two things for you new customer, if appropriate for your business, and aim to improve both:
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Repeat business - % of new customers who buy again during a given time period.
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Referrals from you new customers - Number of referrals / number of new customers
Emerging Customers
You have an established relationship with this group of
customers. They are however not giving you all the business they could
be sending your way. There could be many reasons for this including,
less than satisfactory results from a previous transaction, you are
perceived as a backup supplier, the customer is not aware of all you
offer and so on. How can I find out I hear you ask! Ask your customer
and you will quickly learn the reasons.
Measure two things and aim to improve both:
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Volume of existing products or services ordered. Volume this month / average monthly volume for last 12 months
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Percentage of new products or services ordered. Number of new lines ordered / total ordered in last 12 months
Established Customers
You work closely with this group in an environment of
trust that extends in both directions. Your goal here is to maximise
your relationship and become the primary or full supplier.
Ask yourself some questions:
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What can you learn that will help you develop a real partnership with your contact(s) and others inside the organisation?
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Do all the key people understand how both parties will benefit from expanding the relationship?
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Do you have a good understanding of what to expect from this account over the next 12 months?
What's Next?
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Divide your customers into the three groups
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Put together a plan that includes a call and action
schedule. The plan should show how to move from your current
position/performance to the results you want to achieve.
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Last Updated ( Tuesday, 26 July 2005 )
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