Are Your Customers Costing You Money?

Have you worked with customers who actually cost your business money rather than generated a profit?

It does happen. If it hasn’t happened to your business yet, then you are an anomaly. I think the first question we need to ask ourselves when it does happens is: “What am I, my staff (if you have employees) and the business doing to attract the type of buyers I don’t want?”

It starts by understanding who your ideal customers are. From there, pinpoint the characteristics of those you don’t want to attract. One you do this, you need to stop marketing to those you have no interest in doing business with. This may mean changing the messaging on your website to really hone in on the emotional needs of the customers you love as opposed to a generic message that includes “everyone”.

A client of ours runs a four-star hotel. One of the challenges they face is not wanting to attract sports teams with lots of young people. While the young people’s parents are enjoying the finer things in life at the hotel such as a nice dinner and drinks in the lounge, their kids are running around in packs having a good time and enjoying their freedom. This scenario presents several challenges. One is the consideration of other hotel guests in regards to noise levels, and another challenge is keeping the young people happy, active and contained to specific areas of the hotel.

Although management has chosen not to turn away young sports teams, it avoids actively marketing to them or putting information on its website to promote or encourage this type of business. In fact, its rates have been adjusted to deter business from sports teams.

What is your company doing to stop marketing to the customers that potentially cost your business money now and in the long run?

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