How to find the ideal customer

There we were, the installer and I, talking over the most cost-effective ways of unlocking the assets in his considerable customer base, when the phone rang.

The installer answered it, and before he had the chance to utter a word, his eyes closed, all colour drained from his face, and a nervous tick – which I had never noticed before – manifested itself under his left eye.

"Excuse me, it's Angus. I'd better take this," he said to me. Then the conversation went something like this.

"Can I help you?"

(Excited, high-pitched voice at other end.)

"But, if…"

(Rather more excited high-pitched voice at the other end.)

"I could…"

(Even more high-pitched voice at the other end.)

"If it's all right with you, I'll…"

(Voice at other end reaching detonation level, then total quiet.)

The installer's complexion started to regain some colour, relief spread across his face, and he wearily shook his head. "Another case of RCI, Robert," he said to me.

RCI was not a familiar acronym to me, but I was quickly informed that it stood for Rectal Cranial Inversion. The meaning and context was now extremely clear, with the added benefit of political correctness.

How to deal with RCI

This installer can hold court with the great and the good, and maintain a smile whatever the prevailing business wind, but he is knocked sideways by a case of RCI. "While we are talking about it, how do other installers deal with their cases of RCI?" he asked.

The answer to which conveniently brings me to the subject matter of this article – customers, and the value of your relationship with them.

If your instincts told you that 'Angus was one to avoid', the real answer was not to accept his gracious offer to purchase something from you. Ah, if only it was so simple, when Angus is the best friend of your largest customer, and you did say that you would do him a special deal.

One of the genuine luxuries in business life is to be able to choose our customers. Just like finding a domestic partner, these decisions are paramount to our personal happiness and success.

Whether your salespeople look at this luxury of choice in such an altruistic way may depend on how you structure their remuneration package. If it's small basic plus high commission, don't blame the salesman for adding Angus to your customer database. His view will inevitably be that any ensuing difficulties will be for Service,Engineering, Operations or the Boss to sort out, and anyway, the mortgage has to be paid. If you opt to pay your salespeople on the basis of a decent salary and profit-sharing, then you might stand a better chance of heading Angus off at the pass!

In an ideal world…

I was quickly informed that RCI stood for Rectal Cranial Inversion

Robert Barnes

Ideal customers are those who:

• Are pleasant to deal with

• Understand the meaning of a fair price for the job

• Keep to their side of the bargain, and pay when you ask them to

• Value the service you provide, and understand that your working hours are 9-5, Monday-Friday

• Actively help in the promotion of your business

• Provide you with both short- and long-term revenue opportunities.

I know that someone has to deal with the others, but does it have to be you? There are plenty of customers who meet the criteria above, and it's these customers who can help you up the ladder towards business heaven.

Let's look at each of these in a little more depth.

While to many the security system purchase is a 'grudge' purchase, due to an incident or potential incident that has triggered the enquiry, the vast majority of people are genuine and pleasant. They may, of course, be nervous at the prospect of having a stranger on their property and of parting with their money. Given that you instil into their conscious the benefits of working with you (note the use of the word 'with'), any instinctive nervousness should give way to a bond of trust that you can further cement by quoting other like examples from your wide portfolio of pleasant customers.

We all know those who know the price of everything and the value of nothing. Using another adage, you 'gets what you pays for', and never truer than in the security installation business. You don't grow a business by undercharging. There is a rate for the job, and all customers want to know that you will install to high standards and be there to support them.

Never under-estimate the 'arms around' factor. This always transcends pricing considerations.

Customers like to be led through the process, part of which is spelling out your expectations of them. Will they have removed the wall units from the lounge? Have they found the key for the loft? Will they have a cheque ready when you have finished? All of this preparation saves time and money, thereby at the very least maintaining, and maybe increasing, your job profitability.

Part of the service you provide is to educate the customer, not just in how to use the products that you install, but also in how to use your services, on an ongoing basis. You are there to service the customer's needs. These facilities have to be paid for, and depending on the policies you lay down, some of these may be available on a 24-hour basis, but most between 9am and 5pm Monday to Friday. Educated customers will not abuse your service.

Your most powerful weapon

Promoting your business comes in many ways. There are plenty of books and articles to absorb on sales and marketing techniques, but one of your most powerful weapons is your customer base. Make him feel a part of what you are trying to achieve, and you will be surprised what little resistance there will be to helping you. Yes, you have to do your job properly in the first place, but would you refuse to help a supplier who has looked after you and pulled you out of the proverbial at an hour's notice? Customers have friends and contacts and belong to groups and societies. All you have to do is to extract the knowledge, and use it to your company's benefit!

You can bring new customers on-board, because a) they give you some turnover/cash-flow; b) they actually give you some profit; and c) they help to give you a future income stream. You can choose to install a new system with the barest of profit margins, providing that you have a contractual guarantee for a number of years of ongoing maintenance revenue. The sale then makes financial sense. There is every reason to seek out and foster those customers who have a plan to spend money with you on an ongoing basis. Having a nucleus of these helps give you an assured foundation for your business. Having this level of assurance helps to give you confidence in all your business dealings.