The Million Dollar Customer - Not Who You Think It Is
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Summary
In this episode, learn what makes a good customer and a bad customer, and why you should stay away from them. You'll learn why John, Larry, and Mary are your best and worst customers, respectively.
Transcript
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You know, very often salespeople and entrepreneurs do not fully know what makes a great customer and a bad customer
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because all they think about when they think about a great customer is whoever made them the most money.
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So today, I'm going to give you examples of three different customers.
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Mary, who only made you $5,000 in commission.
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But I'm going to share with you why Mary is your best customer as well as what bad customers to stay away from.
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So let's start off by identifying what a bad customer is.
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You know, we have the best customer, the worst customer.
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I've had tens of thousands of customers over the years, and I've worked with a lot of personalities.
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And the moment I see trends of somebody potentially being a bad customer,
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I immediately have to make a decision whether I want to pour into this person or do I have to pivot.
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No matter what you do for these bad customers, no matter what you ever do, they're never happy.
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Number four, they take up way too much of your time.
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You spend so many hours calling this person, spending time with them for $100 payday.
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Every time she calls in or he calls in, they disrespect your assistant.
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They disrespect the people that are, everybody's at fault.
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Everybody did something wrong where your staff feels like they're walking on eggshells trying to service this customer.
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And last but not least, constant threats, meaning every time they're like, we're about to leave you, we're going to go, we're going to do this.
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You're like, do I even have you or do I not have you?
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Don't jump to conclusion right after that when somebody does it.
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Let it be a trend where you all of a sudden see a pattern to say, I think this person qualifies to be in this area.
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When you call him, you can never get a hold of him.
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Maybe you sold him a $10 million insurance policy.
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Maybe you did a deal with him, whatever business you're in.
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Took you five years to follow up with Larry until he said yes.
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So five years divided by $20,000, $4,000 per year if you really break it down.
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He's creating momentum in his business, which means he's about to have a lot of success.
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Hasn't sent you a lot of referrals, but he's got a young network.
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So today, if you compare these two, he sends you some referrals.
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She can only afford to buy a $600,000 house from you.
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She can only afford to buy a small policy from you.
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She can only afford to buy something very minimal from you where the commission's only $5,000, right?
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However, because she's a believer in you, she sent you 28 referrals.
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These 28 referrals have made you $111,000, and she tells everybody about you.
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Mary's not even one of your best customers.
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But the reality is, Mary is your best customer, period.
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You call her, she picks up, she tells everybody about you, she invites you to the birthday party,
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she invites you to the different events, and she's constantly working for you.
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See, the reason why this conversation came about, I was sitting there with a couple of
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my sales guys who were having a sales meeting, and I said, give me the list of your top five
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And everybody wrote down their top five customers.
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I said, tell me why you made your number one your number one.
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And I said, so tell me why number five is number five.
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And I said, so let me ask you a different question here.
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Tell me which one of your clients have given you the most referrals that's turned into business.
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So the same guy that had a customer that made him $160,000, had another one that he put at
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He says, number five best customer gave me 20 referrals who all bought and all spent a
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Those 20 referrals that he gave him made him $250,000, even though the client only spent $15,000
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With 10 clients like this, you can become a millionaire.
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With 10 clients like Mary, you can become a millionaire.
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So now if you're watching this, you're saying, well, first of all, you may have a referral
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You don't even ask for referrals, but then you've got to get better out of script on how
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You go, oh my gosh, I totally thought a person like this was the best customer, so do you
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No, of course you support a job, who's not going to take a $50,000 commission.
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Anybody would take a $50,000 commission or a $20,000 or a $5,000, but you water this one
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This one just sees you as somebody to do business with and that's it.
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So now, a few things to think about on great customers.
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They have specialized knowledge that you can learn from, okay?
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So in here from Mary, I'm getting a lot of contacts, a lot of connections.
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This one doesn't even want to have a relationship with me.
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This one wants to have a relationship with me.
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So believe it or not, Mary's your best customer.
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Larry's your second best customer, and John's your third best customer in this example because
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he is headed going places, and he doesn't mind inviting you, and he's very friendly with
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you, and he's a guy that's winning, and he's willing to spend time with you because his
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contacts that he mentioned should be your contacts.
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Having said that, I got two other videos I want you to watch if you enjoyed this video
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One of the other ones is it's three skills every salesperson must master.
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The other one is the difference between customer service and customer experience.
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It's a very, very different way of looking at customer service.
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This video was shared at Microsoft, and they were teaching customer experience and customer
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If you've never seen it, click on that to watch it.