How do you define your best customers? Revenues? Profits? – Seth Godin suggests you take into consideration which customers are bringing you more customers.
Seth Godin had a great blog post the other day (he always has great posts) but this one hit home.
I’ve been in front of a lot of printers in the last year who said to me, “I don’t want to reveal my pricing online because some of my best customers are paying me the most.”
Seth asks how we define our “best customers” are they the ones you get to charge the most and make the most on? Or alternatively are they the ones that generate the most referrals (best customers = best marketers?)
Defense or offense? Willingness to be transparent or remain secretive? The online world is rewarding transparency and offense in a big way. Customers are willing to tell you more about them, but in return; you have to share more about you and your business!
Read the whole post here – its worth it.
Seth: Your blog on the issue of pricing is a bit “thin” to say the best. There are so many consideration that go into pricing a job for each customer. Whether the customer is a good “marketer for you” is just one factor. There are considerations for customer preceived value,time issues, ability to pay and the customers payment habits,etc. A customer who pays upon delivery is or maybe entitled to pay less than one who pays in 60 days. A customer who pays in 60 days-but does so all the time-and is a substantial customer year round-may also be entitled to a good price. The issue of pricing has been around for ages and has been subject of numerous books and articles. However, there is one and only one constant in pricing “you must charge enough to make a reasonable profit on the project”. You can’t charge too little in the hopes of making up later-never happens, Most printers who go out of business always charged too little. I have never heard of printer who went out of business because he charged too much. By the way Seth, how long have you been in the printing industry?
Dennis,
I was quoted “Seth Godin” I am not Seth (unfortunately) – I am Jennifer, the author of this blog. I’ve been in the printing business 20 years which is irrelavant as some of the printers have the most success today are new to the business! We can all learn from the beginners because they have a fresh perspective based on the new norm of sales, marketing, and the vast increase in the number of communication methods available to customers today. The blog post was not meant to be a comprehensive guide to evaluating your customers – it was meant to introduce a new way of looking at customer value. Times are changing and the ways you get new customers are changing. Broadcast/interrupt marketing isn’t the go-to-plan anymore, viral word of mouth and permission based marketing is the new norm with the customers having a lot more control over the conversation (they get to talk back) and control the ability to switch.
I know defining best customer as your greatest promoter might sound weird, but best customer framed in how much money they bring in is limited as well. A customer who brings you new customers has literally unlimited potential to you. A customer who is paying prices they negoatied 5 years ago and haven’t gotten around to re-negotiating has a click ticking on their life span – its just a matter of time before someone introduces them to same/equal service at a lower price.
Thanks for your comments.
Jen
I am new to the printing business and work as a quasi-print broker. I am totally transparent in all my business practices, including pricing. I have nothing to hide.
My best customers are what I like to call “referral maniacs.” These are very happy customers who are willing to tell everyone they know what a great experience they had working with me. One of those customers sent me 7 booked jobs last week alone.
Michael,
Your transparency is your differentiator. I love the term “referral maniacs”!
Jen