Leverage Pays 5 Reasons to Stick with Your Ideal Clients

February 18, 2008

One of the biggest challenges entrepreneurs face is moving from fear to trust. Most new entrepreneurs go through a progression of ‘I’ll take anyone who can write a check’ and move to one where they know the clients that work best for them. What can make this transition that much easier is realizing that there is plenty of business out there. When you combine this understanding with a strategy to attract more of your very best clients (more on this in a future Marketing Mojo) you can have a virtually unbeatable marketing combination.

Here are 5 reasons to stick with your ideal client!

Reason #1 - Taking the Wrong Clients Wreaks Havoc on Your Marketplace Trust

“I don’t trust that if I give up one that I’ll get another one,” the entrepreneur says. Our entrepreneur takes the non-ideal client (misfit vs. perfect fit), loses money on the deal, and then the misfit client goes out into the marketplace and erodes external trust. The misfit tells one, two, 10, 20 people about how awful it was to work with the entrepreneur. Each of those people may tell another two or three, soon that company has a little trust leak that could have easily been avoided. If the misfit enters the online space, then there’s an immediate way for others to know about the less-than-ideal client – and about how that client was underserved.  

Reason #2 – Misfits Offer Opportunities for Leverage

It isn’t about saying one company isn’t as good as another. It’s about having the integrity to bypass the companies that will not be best served by you and your company. These misfits are not a fit for your company; however, they are a perfect fit for another company. If you know what your ideal client is you use your ideal client profile, a misfit may simply be passed up. But, if you understand the law of reciprocity, you can leverage the non-ideal client for future profits. Here’s how.  

Let’s say that you interview a company that is really not a good fit service-style wise. Let’s say you are a high-touch company and this company isn’t really interested in that. This company wants a bargain basement price and does not value highly personalized service. If you have a list of referral sources ready for these occasions, then when a company comes along that wants the lowest price, it is easy for you to refer this client to a reputable firm that will offer a service-match. Likewise, with a strong reciprocal relationship, the referred-to company can refer those companies they meet that want a more high-touch relationship that they simply can’t offer due to low cost.

I see companies that let misfits go, but I don’t see a lot that take the next step to find a solution for their misfit. When you use this strategy, not only do you leverage the relationship of the referred-to company, but you also leverage the referred company – the misfit client. The way it works is that they see that you have their best interest in mind. Because this is true, you’ve ignited the law of reciprocity not once but twice. The law of reciprocity causes an individual to feel the need to reciprocate a kindness. This deal works best when you don’t expect anything. You do your best, take care of clients like they are your mom, and others tend to want to take care of you. Simple, yet oh so powerful.

Reason #3 – Like Attracts Like

One of my favorite benefits of working with an ideal client profile is that there are more ideal clients where those came from! Generally speaking, like attracts like so ideal clients tend to know others that are similar and therefore a source of better referrals. Think about how much time it takes to work with a referral that is not a good fit. It is time-consuming, even though it can still be beneficial (see #2 above). Still, in the end, wouldn’t you rather work with ideal clients who send people who are similar? I thought so! The ultimate benefit to this reason is that getting more ideal clients takes a lot less work.

Reason #4 – Builds Leverage in Centers of Influence

A big buzz word thrown around these days is social networks. The reason these social networks are getting so much attention is because they are powerful. In very short order, a connected group of social networks can build a brand virtually overnight. A good example of this is how Timothy Ferris’s book, The 4-Hour Work Week, debuted at the top of the New York Times Best Seller list after being promoted in key centers of influence through blogs and other means. When you work with your ideal clients, a similar phenomenon happens within your niche. All of a sudden your name is tossed around more than Paris Hilton. You become a big buzz in your ideal client niche. Suddenly, your marketing efforts are earning big dividends – with the same amount of, or less work.

Reason #5 – Creates a More Powerful Brand and Company

When entrepreneurs try to serve anyone and everyone, it spreads resources thin and dilutes focus. By focusing on an ideal client base, you, the entrepreneur can then dedicate time and energy to serving and constantly meeting the needs of your very best clients. The result is usually a higher per-customer sales average, a more loyal client base of raving fans, and a client base that grows with you as you grow. The more consistent your message is and the more direct your services and offering, the more powerful you appear to your market. Clarity of vision feeds clarity of the ideal client which results in strong sales and a never-ending opportunity to serve those you work with best.

In the bigger picture you do business a certain way – we all are unique in who we are. This unique service style combined with the services you offer are a perfect match for certain individuals and companies. That’s the short of it. Just like a puzzle piece, there’s an interlocking fit between you and your ideal client. Those clients that are not a good fit are free to bypass your door and move to the best company to serve them. What could be better, right?

Nothing is much better, honestly. If you are a services company, then you already know how painful (and very unprofitable) a client that is not a good fit can be. Face the fear, refer the misfits, and serve your ideal clients. It’s a winning combination that makes profit and sense.

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Posted by Tina Ferguson | Filed Under Blog, Marketing Results 

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