4 Steps to Effectively Switch Customers Without Losing a Cent.
April 16, 2015
Switch Without Squash
So, you’ve taken the time to work out your IDEAL customer, you even know how and where to find them to support a 10x lead generation funnel, BUT what do you do with the current customers you no longer want?
You can’t just ‘drop the anchor’ and sail away to calmer waters… you have to play your cards right to replace your income from one customer to another… (or perhaps it’s adding a customer type so that you don’t have ‘all your eggs in one basket’. That could be the killer of you too…)
Let’s take a look at a list of actions that need to take place, -in order-, to ensure you make this a smooth transition.
1. Understand exactly WHO are the customers you no longer want to work for.
Have you pin-pointed companies or clients based on their inefficiency, lack of communication, consistently owe you money (too much!) or lack of confidence in their business future and hence the potential risk it places you? Whatever your reason, you simply need to have one.
2. How much money has this customer provided you over the past 12months?
A quick report from your accounting package will tell you this. It’s critical because you need to know what revenue you need to replace. It could be so minimal that the decision is a ‘piece of cake’, however, the report could show you something quite the opposite. This takes us to the third point.
3. With this report you can then decide if you can replace the revenue immediately
(hence you can simply walk away now, amicably), or will it take time? (hence you will need a plan to replace it over time). This is where your IDEAL customer comes in. When you know who you are targeting, how to speak to them, and where to reach them, it will be far easier to understand how to increase the customer type you REALLY want.
You do need to get down to some nitty gritty – what is the average dollar sale? And hence how many jobs a week are realistic to replace the revenue?
Only some detailed thinking will help you work out this one.
4. Devise a plan of action.
With the knowledge from the points above, you can devise a plan to ensure you are not left with a gapping hole in the P&L simply because you ‘moved on too quick’.
Facts reviewed, data gathered, discussions complete and decision made – all without losing a cent!
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