I am aware that the bottom line of business is sales and my question of proposing a choice between customers and transactions seem illogical since for transactions to happen there must be customers.
My punchline question to you is;
as a business owner or salesperson, what is important to you between building customer base and making transactions?
This question is very vital for startups because failure to identify where your value lie, you’re bound to make costly mistakes.
Firstly, let me outline what it means to prioritise customers or transactions.
When you prioritise building customer base it means you are intentional about having only the ideal customers. Remember not every prospect that needs your service or product is by default your ideal customer. There are toxic clients that you need to look out for. So, when you prioritise building customer base, you’re intentionally building a clientele so that your customer relationship strategy speaks to an already clientele and it becomes convenient for you to build customer intimacy. Having a customer base serves as a proof of market and also it goes back to understanding that client retention is cheaper than client acquisition.
This is about choosing who you want to serve and this could be based on organization level/size, opportunity level, your niche, and other traits. And to achieve all that, you need a customer qualification criteria to ensure you have the right customers and it makes it easier for you to say no to clients that do not align with the customer base you want to build.
When you prioritise transactions, you are about ‘show me the money’. It becomes tricky for startups because in their early stages desperation for money easily creeps in which can lead to accepting any money that comes through the door regardless of whether it is from the ideal customer or not.
And this can lead to being bullied by customers, stretching yourself too thin because you’re trying to grab at any sale opportunity available and can also lead to unethical practices. This is because your focus is on money. You can even accept to offer a service/product that is not part of your business scope because there’s money on the table, thus leaving you unfocused.
Now that you got clarity;
1. What were you prioritising before you came across my post?
2. What are you going to start prioritising between building customer base and making transactions?
3. Can you define your ideal customer? And how do you qualify a customer – which criteria do you use?