How to Choose Your Customers
- Thursday, 22 December 2016
It may sound counter-intuitive, but when it comes to clients, "yes" isn't always the answer. Your construction firm should be able to identify projects that will maximize profit and minimize friction. Don't be afraid to say "no" to potential customers. We share a few tips on how to identify great projects and decline projects that will cost you more money and resources in the end.
Leave emotions aside
As a business owner, you know that more sales mean more revenue and a healthier company. However, too much of a good thing can be damaging. So, even if you spot an easy deal and feel excited about it, manage your emotions and don't let them guide your decision-making process.
Focus on a niche market
When companies try to service every customer that comes through the door, they may be spreading themselves too thin. Focus on a particular industry, or better yet, focus on a particular niche market. If you service these customers right, word spreads out and your expertise deepens within that segment. You will have fewer, happier customers that will make your company grow faster.
Develop a system
If you build a process or system, it is much simpler to choose whether or not to bid on any given project. Set up a checklist of qualities your ideal project or customer should have. If most of the items on this checklist are met, then you certainly should bid on this project. This is a simple, emotion-free approach.
Optimize your system
As time goes by and lessons are learned, you can optimize and reshape your system. Make sure everyone in your team learns about the process and that they share their input with you. Ask them to upload their thoughts to your construction management software so that everyone can review and give feedback.
How to say no
If a potential customer has fallen into the "no-go" category, then inform your team members. You can either not bid on their project, or if they have approached you, make sure to have a short conversation with them if requested. Also, make sure to recommend them to other firms if they are a worthy customer but outside of your selection criteria. This will not only ensure that you save both their time and yours, but they will also remember your service in the future.