Accelerating Business Growth

Friday, February 03, 2006

“How to Prioritise the Potentiality of Your Existing and Future Clients!”

In the last post I covered a strategy for maximising and realising the true potentiality of your Clients and Customers - allowing you to harvest the windfall profits lying dormant in your business -

Oh yes - and of course I shared…

The three accelerator questions I always ask at the start of all new consultancy engagements to start the process;

1. How many Customers do you have?
2. What do those Customers spend with you in total? And…
3. How much could they spend with you based on your current product and service offering? Or phrased a different way how many of your Clients or Customers are multi sourcing or simply buying elsewhere products and services they could be buying from you?

Once you’ve determined the answers to these three questions related to your Clients and Customers, then the next strategy is to prioritise the potentiality.

This is how you do it.

Firstly create a banding system. I usually base this on turnover annualised over the year – for example;

Bronze might be a spend of up to £4999
Silver - £5000 - £9999
Gold - £10,000 – £19,999
Platinum - £20,000 plus
You can also do this exercise related to profitability.

The goal is to have an even spread of Clients and Customers who fall into the various categories. For example make sure you set the platinum band at a realistic level so your team will definitely have Clients who fall into this band or…have the potentiality to migrate to the level of spend over time.

Once you’ve created the bands categorise all your existing Clients by their current spend. Then - and here is the real power – having answered question 3;

How much could they spend with you based on your current product and service offering?

Categorise your existing Clients and Customers by their Potentiality!

Now this has a number of benefits and poses some key questions.

+ Are you and your team focusing your time and effort on the Clients who have the most potentiality?
+ How much more pro active will this allow you to be once you have this information?
+ How much more focus do you think it might create?

Some of my other Clients even run quarterly competitions – focusing on turning bronze Clients into silver - silver into gold - and of course gold into platinum.

I’m sure you’re already thinking of a number of other benefits.

Such a simple yet powerful strategy – creating laser beam focus - allowing you to realise the true potentiality of your existing Clients and Customers.

Perhaps now is the time to create your strategy for implementing this idea in your business – after all action really is the key to success!

Written by Royston Guest, Sales and Marketing Director of Pti International, the UK's leading persoanl and business growth organisation.


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