Attracting the Right Customers

Every business needs customers. However, there is an important difference between attracting more customers and attracting the right customers.

A business can become extremely busy serving customers who:

• generate very little profit
• demand excessive attention
• or regularly delay payment.

Growth should be measured by the quality of the business it creates, not simply the number of transactions alone.

Remember, this could take some time but focus on this and keep refining your offering to increasingly attract the right client for your business. Here are some of the steps you need to consider:

1. Understand Who Your Ideal Customers Are

Consider the people and organisations that benefit most from your products or services.

What problems are they trying to solve? What do they value? What influences their purchasing decisions?

Do not try to appeal to everyone.

A clearly defined customer group makes marketing and sales decisions easier.

2. Understand Customer Profitability

Review the revenue, direct costs, servicing time and payment behaviour associated with different customer groups.

A customer generating £10,000 in revenue may be less valuable than one generating £6,000 if the first requires significantly more resources.

3. Develop Your Value Proposition

Customers need to understand why they should choose you.

It may be your reliability, specialist knowledge, customer service, convenience, quality or ability to solve a particular problem.

Communicate that value consistently.

4. Invest in the ‘RIGHT’ Customer Acquisition

Consider targeted advertising, search engine optimisation, professional networking, referral programmes, partnerships, collaborations and relevant content to attract the right customers

For example, a local accounting practice could create useful online guides for self-employed professionals and small companies.

Marketing investment should be measured against enquiries, conversions, customer acquisition costs and profitability.

5. Build Relationships

A satisfied customer can become a source of repeat business and referrals.

Follow up, ask for feedback and look for opportunities to provide additional value.

If additional marketing capacity or technology is needed, consider whether the investment is affordable and likely to produce measurable results.

3 Actions You Can Take Today

1. Describe your three most valuable customer types.
2. Review the profitability of your existing customers.
3. Contact three previous customers to reconnect.

Sustainable growth is not about being everything to everybody. It is about becoming genuinely valuable to the people who need what you offer.

Disclaimer: This article is for general information and educational purposes only and does not constitute financial advice. Finance is subject to eligibility and lender terms. Seek independent professional advice where appropriate.