It would be ideal that business owners to fire their lowest-value clients today, but not all companies are able to do so. For instance, a small business could disappear overnight if they get rid of all its low-quality clients, without implementing a transition strategy such as "one in, one out". As described by Jim Connolly, "When your improved marketing generates a high-quality client, you fire your worst client; until you have developed a client list based on the ideal profile for you and your business."
How to attract better clients?
The company should focus on profitable clients, which does not always mean looking for wealthy clients. High-quality clients are those that allow the company to establish a lucrative price and generate the benefits needed to meet its financial goals. These customers, whether distributors, wholesalers, retailers, or the end user, are easy to access without incurring huge marketing costs to reach them, or involving large costs for the company to meet them or convince them to try the product. Here are some strategies that will help you attract them:
1. Know who you’re going after
You must define, which is our ideal high-quality client. To do so you must know their demographics? Psychographics? Socialgraphics? Demographics? Etc... You must determine what type of individuals, companies, and industries you want to work with, and what products or services you want to offer them. Knowing, and understanding your niche is essential to establish an effective communication strategy.
2. Offer services/products clients really want
Having a wider range of services and products does not necessarily generate value for customers. Many companies spend a lot of time and money in the development of services/features that are not valued by customers. When they should focus on having a smaller portfolio of services centered on the features that interest high-quality clients. This approach enables your company to communicate clearly how you can help your clients. Furthermore, you make it easier for them to find your business. While other companies use their resources (time and money) to market several features, services, and products, you focus on those that really matter, those that will get the attention of the clients you want to attract.
3. Know your worth
Companies struggle to realize the true value of the work they produce. Businesses often overvalue what they are not, and undervalue what they are. Forcing companies to determine their worth by comparing themselves with the services and products of the competitors, using a "me-too" approach. However, the best way to succeed in increasing your income, and the perceived value of your products and services, is by focusing on your distinctive innate talents. In other words, the company must show its prospects how it differs from others in the industry, and what value it provides that others do not. Keep in mind that what makes you different, may be part of the company's culture. It can be highly valued by customers, but often overlooked in the company.
4. Set clear expectations
Written arrangements will also help you avoid bad customers. You should always require a written contract/engagement letter that specifically lays out both, your and your client’s responsibilities, payment and fee expectations, due dates, and terms of termination. This will help you make sure your clients know exactly what they are getting from you upfront.
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