Close look: it's time to evaluate your client base and push customers up the ranks from prospects to partners

Prosales, Jan, 2004 by Mike Butts

I am a huge fan of organizational management, or what a very good friend of mine calls "collect mad control,' In other words, collect "all pertinent information on your business mid accounts, mad control the outcome with proper planning and excellent execution. It's a thought process that can--and should--be applied to the sales side of your business.

Last month I discussed selling as a proactive versus passive pursuit. It seems that many salespeople have fallen into the rut of waiting for business to come to them, rather than generating new business by collecting information about accounts and working to control more of their business. One of the first steps to getting out of this rut is to understand your customer base. Through my experiences and research over the years, I've found that customers fall into one of five categories:

Prospects: companies that you have identified as potential customers and would like to begin to develop relationships with.

Customers: companies with whom you do some business with, but can't really call them "loyal."

Clients: companies who buy from you as their primary supplier, but continue to shop around.

Advocates: companies who buy from you as their primary source, and are reluctant to shop around. They recommend your company to their peers.

Partners: companies who buy solely from you and would not consider another supplier. These companies will also act as referral sources for you and will defend your business.

Try this exercise: Look at your current client list mad honestly and objectively categorize each company based on the above criteria. How many do you classify as customers, clients, advocates, and partners? If you can identify where each customer falls, you can more effectively build their loyalty.

Remember this well-known quotation: "If you always do what you've always done, you'll get what you've always got:' Does this summarize your current business? If your answer is no--congratulations, you are either doing something very well, or you've stumbled around enough to make things happen. However, I'm betting that for most of you reading this right now, the answer is yes, and that you "have never really taken the time to completely and objectively analyze your current business base. It's time to thoroughly scrutinize your business and decide on a course of action that will produce results different from those you've experienced in the past. Use this exercise to determine where the bulk of your business is coming from, strengthen that business, and then move each customer "up" at least one level.

And finally, don't neglect those companies you label as advocates and partners. They are the ones providing the solid core of your annual sales, but unfortunately are often forgotten as we pursue new customers. My advice has always been to try to sell more to existing customers rather than to focus solely on attempting to get new business from prospects. It's far more effective, locks the customer more tightly to your company, and produces higher margins to boot. Sometimes the best ways to grow the bottom line are right underfoot--you just have to take a step back to see them.

Mike Butts is director of installation services for United Building Centers. 507.457.8453. E-mail: mike.butts@unitedbuildingcenters.com