The Paradox of Profitable Customers

by: Bilal Ali 2.1 min read

One of the questions we ask in our growth workshops, is what percent of your new customers know what they want?

Most businesses reply with; “Most customers think they know what they want, however, once we speak to the client we often recommend a specific solution based on their needs.”

We live in the new world of inbound marketing, we all do our research online and then pick up the phone or walk into a store when we are ready to engage.

The contradiction and conundrum for many businesses when it comes to profitable customers stems from the notion that the customer who thinks they know what they want will invariably convert better but be more price sensitive and may not be a profitable customer.

For example, the customer who is searching for a branded product such as ‘Colorbond Fencing’ or ‘Stratco’ pergolas will get the three quotes and the price will be a big part of their decision.

On the other hand, there is the customer who is time-poor; they may be busy renovating their house and don’t know much about brands of fences of pergolas.

This customer has a genuine need; but does not know exactly what they want. They may not convert the first time, and they may sound and act like a ‘tyre kicker’ as they are intimidated by the language of the website or the sales person.

This customer may not purchase anything or may take longer to make a decision; but alternatively, they could be one of your biggest and most profitable customers.

So which market does your business operate in? Converting the converted, or educating and consulting the customer who has a need but does not know what solution is best for them?

If you are reaching a new audience in social media, you can’t assume the customer has the same product knowledge as the Google customer who is searching for what they want.

You will need to make an investment in content, education and personalization, otherwise your conclusion will be, “Facebook advertising does not work for my business.”

If you are investing in adwords, you need to segment those audiences which know what they want, and those that don’t. Your website experience also needs to be different.

These two processes will help differentiation, generate value and more profitable customers.

Thanks for reading.

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