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Your Best Customers Are Not Your Biggest

After reading this you will be able to score your own customer list on four things in one sitting, and you will know which kind of customer your whole business should be pointed at.

Your biggest customer and your best customer are usually two different people, and you have been building the business around the wrong one.

Ask any owner who his best customer is and he names the largest order. It is the honest answer, because turnover is the only number he tracks per account. But turnover is one of four things that decide whether an account is worth having, and it is not even the most important one.

I sell UV printing machines. More than 1,000 customers, across more than 51 industries. When a business is spread that wide you find out quickly that two accounts of the same size can be completely different animals. One pays on time, reorders, sends referrals and calls twice a year. The other negotiates for four months, pays late, calls the office daily, and never buys again. Same rupees on the invoice. Not the same business.

The four things to score

Take every type of customer you serve and give each one a mark out of 10 on four questions. Not each individual customer. Each type, each segment, each industry you sell into.

1
Profit. How much money is actually left after serving them? Not the invoice value. What survives after the discount you gave, the extra visits, the credit period, the rework, the freight you absorbed. Score the money that reaches your bank and stays there.
2
Enjoyment. Do you and your team like working with them? This is not a soft question. Your best people leave over the accounts they dread, and you personally give your Sunday to the customers you least want to speak to. Both of those are costs.
3
Repeat business. Do they buy again? A customer who buys once every year for eight years is worth many times the one-off order of twice the size, and you never have to convince him again.
4
Ease of serving. How much of your time and your team's time does one order consume? Long negotiations, custom demands on every order, four people involved in every decision, payment chased for 90 days. Every hour spent here is an hour not spent on the good account.

The ideal segment scores high on all four. That is the entire test.

Most business owners have never scored 2, 3 or 4 in their lives. They score 1 badly, using turnover instead of profit, and they call the winner their best customer.

The trap

The biggest order is the one that scores 9 on size and 3 on everything else. You took it because the number was large, you gave a discount to win it, it ate your capacity for two months, your production head threatened to resign over it, and the customer never came back. On the sales chart it looks like your best year. In the bank it was your worst.

Why volume without the other three hurts you

A big low-margin account does three kinds of damage at once, and only the first one shows up in your accounts.

It takes your margin. You discounted to win it, so you are working at your thinnest rate on your largest volume. That is the wrong way round. Thin margin on small volume is survivable. Thin margin on your biggest block of capacity means the whole factory is running for very little.

It takes your time. Big accounts do not just place orders, they demand attention. Meetings, revisions, escalations, follow-ups on payment. While your team is doing that, the accounts that score 8 on all four are being called by your competitor and nobody at your end has time to notice.

It takes your morale. In my survey of 63 business owners around Ludhiana, the single most-named frustration was the team. Finding people, training them, keeping them. One owner wrote "we train them then they shift to another company for a higher package." A punishing customer is one of the reasons good people leave, and nobody ever puts that cost against the account.

You end up with a bigger business, a thinner margin, a tired team and no more freedom than you had at half the size. That is the shape of most 7 year businesses I meet.

Aim at one segment, not at everybody

Once you know which segment scores highest, point everything at it.

Business Owners resist this, and the objection is always the same. "If I only chase one type of customer I will lose the others." You will not. The others keep buying. What changes is where your effort, your money and your message go.

Here is why concentrating wins. When you talk to everybody you have to speak generally, and general language convinces nobody. "We serve all industries with quality printing" says nothing to any single reader. When you speak to one segment you can name his exact problem in his exact words, and every man in that segment feels you are describing his factory.

It also compounds in a way spreading never does. Serve twenty customers in one industry and you learn that industry properly. You know its season, its margins, its language, the two things that always go wrong. Your quotation gets sharper. Your reference list is full of names the next buyer already knows. Those twenty men meet each other at the same association meetings, so your reputation travels for free.

Serve one customer each in twenty industries and you have twenty separate learning curves, no reference that means anything to anybody, and no word of mouth, because none of your customers has ever met another one.

I have sold across more than 51 industries. That did not happen by aiming at 51 industries. It happened by getting deep enough into the ones that scored well that the machines and the reputation carried outward on their own.

The proof of a good segment

One buyer in Hapur has around 11 machines from me, at roughly 23 lakh each, and he keeps reordering. That is what a high score on all four looks like in real life. He is profitable, straightforward to work with, buys again, and easy to serve because we both know exactly how the other works.

How to run the scoring this week

This takes one evening with your list and a sheet of paper. Do not build a spreadsheet model. Do not hire anyone.

1
List your segments, not your customers. Group by industry or buying situation. Garment units. Corporate gifting firms. Job-work printers. Government tenders. Traders. Aim for 6 to 10 groups. If you write 30, you are listing customers, not segments.
2
Make five columns. Segment, profit, enjoyment, repeat, ease. Score each out of 10. Do it fast and honestly. Your first instinct on enjoyment and ease is more accurate than anything you will reason your way to in an hour.
3
Get the profit number right before you score it. This is the only column that needs work. Take one real order from that segment and subtract everything: discount, credit cost, extra site visits, rework, freight, the sales time it took to close. What is left is the real margin. It will be lower than you think on at least one segment, and that discovery is worth the whole exercise.
4
Bring in two people who see what you do not. Your production head knows which segment causes rework. Your accounts person knows who pays in 30 days and who takes 120. Score the enjoyment and ease columns with them in the room, because they carry those costs, not you.
5
Add the four scores and rank. The highest total is where your business points from Monday. Look at the lowest two as well. You will recognise them instantly.

What changes once you know

The answer is only worth something if it changes decisions. Four things change.

Your message changes. You stop writing for everybody. Your website, your quotation and your first meeting all speak to the top segment's exact problem in his exact words. Same effort, far higher conversion, because for the first time the reader thinks the page was written for him.

Where you spend changes. Every rupee and every hour goes where the top segment already is. His association, his exhibition, his WhatsApp groups, the two people he already trusts. You stop advertising into empty space.

Your quoting changes. When a bottom-scoring enquiry arrives, you no longer discount to win it. You quote your full rate. If he takes it, the margin now pays for the trouble. If he does not, you have lost an account that was costing you money, and your team has that week back.

Your product changes. You start building for one type of buyer instead of averaging across all of them. Averaging is how you end up with an offer that is nobody's first choice.

The reason to do this is not efficiency. It is that a business built on a segment scoring 8 on all four grows without exhausting you, and a business built on the biggest orders you can win grows until the owner cannot hold it up any more.

63 business owners, 73% of them 7 or more years in business, and their average marketing clarity was 5.5 out of 10. Clarity does not start with a campaign. It starts with knowing which customer you are for. Five columns, one evening.

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