The Six Key Ingredients to Identify Your Ideal Customer

Written By
Jon Mailer

CEO & Founder – PROTRADE United
Author of ‘Not Just a Tradie

When I meet a business owner for the first time, I often ask them the following question, “If I was able to refer someone to you, what would your ideal customer look and feel like?”

MV Tiling And Stone
MV Tiling And Stone

PROTRADE United Client MV Tiling And Stone with CEO Jon Mailer

PROTRADE United Client MV Tiling And Stone with CEO Jon Mailer

So, when I ask you that question, what is your answer?

I remember asking a business owner last year that same question, and at the time, I could tell he was in a desperate frame of mind. His response was, “Anyone with money!”

Now, that’s a bit like asking, “When you go fishing, what are you out to catch?” And for me, because I don’t go fishing that often, if I catch anything, I’m happy.

And in all seriousness, if I could arrange ten dream customers for you, back-to-back for the year ahead, how clearly could you describe who that customer is.

I’m going to share with you the Six P’s we use at PROTRADE United to guide our clients on how to identify their ideal customer. Read on to discover the Six P’s below, and match them against the customers that you’re working with to help you identify the best customers for your business moving forward.

1. Profitable

The first one is they are profitable. When you price the work, it generates the Gross Margin that you require for your business. You obviously are required to know what your target Gross Margin is!

2. Pay On Time

Secondly, once they’re profitable, it’s important that the customer pays you on time, according to the terms and conditions that you agree upon. Maybe they pay upfront, or they pay on a time frame from invoice, however they’re easy to deal with from a payment perspective.

3. Pleasant

The third P is, it’s a pleasure/pleasant to do business with them. We have a mantra at PROTRADE United; “We only do business with the people that we want to do business with.” I’m going to suggest that you look back and those jobs that have flowed easily. The customer’s been happy, and the team have enjoyed doing the work. What stands out? There’s also been a great relationship built because of it.

That’s the type of customer that you want to work with all the time. Again, you get to choose!

Written By
Jon Mailer

CEO & Founder – PROTRADE United
Author of ‘Not Just a Tradie

Article Continues

Who are PROTRADE United?

Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.

Are you next?

Who are PROTRADE United?

Australia and New Zealand’s #1 Business Coaching and Advisory Organisation, dedicated to the Trades and Construction Industry. With over 20 years of practical experience, we have a proven track record of helping more than 3900 business owners gain greater clarity, consistency and choice.

Are you next?

Article Continues

4. Partner

The fourth P is that the dream customer is a silent partner in your business. And what I mean by that is they’re happy to refer people to you. It’s almost like they want you to succeed as much as you want to succeed. They want to refer people to you because of the experience they’ve had with your business.

5. Pathway

The fifth P is that there’s a pathway of least resistance to the decision-maker. When working with the ‘mum & dad’ or the consumer market is quite simple because you can easily talk to the decision-maker who’s paying you. As the projects get larger and the organisations that you work with get more complex, e.g.: a tender process, there is less of a clear and simple pathway to the decision-maker. It becomes complex to talk to who’s making the decisions, and work through any pricing objections or challenges. So that pathway becomes important to consider.

6. Process

And last and by no means least, the ideal customer is prepared to follow the sales process that you have created. This is why having a sales process is so important. When you explain to the customer your process, they are happy to follow along. People love to be led if they have confidence in the leader, and sales is a leadership process. Yet, if you’ve got someone who challenges the process, and wants to do things their way, I’m going to suggest that you will know soon that they’re not a fit as a dream customer.

So, there we have it, the Six Ps that you can use around designing and creating the ideal customer.  To start the process of identifying your dream customer, download our complimentary template and start analysing some of your current clients.  Once you’ve completed scoring and added notes, you can begin to build your ideal customer avatar leveraging those results.

All the best, and if you would like some help in even clarifying the dream customer for your business, please connect with the team at PROTRADE United.

4. Partner

The fourth P is that the dream customer is a silent partner in your business. And what I mean by that is they’re happy to refer people to you. It’s almost like they want you to succeed as much as you want to succeed. They want to refer people to you because of the experience they’ve had with your business.

5. Pathway

The fifth P is that there’s a pathway of least resistance to the decision-maker. When working with the ‘mum & dad’ or the consumer market is quite simple because you can easily talk to the decision-maker who’s paying you. As the projects get larger and the organisations that you work with get more complex, e.g.: a tender process, there is less of a clear and simple pathway to the decision-maker. It becomes complex to talk to who’s making the decisions, and work through any pricing objections or challenges. So that pathway becomes important to consider.

6. Process

And last and by no means least, the ideal customer is prepared to follow the sales process that you have created. This is why having a sales process is so important. When you explain to the customer your process, they are happy to follow along. People love to be led if they have confidence in the leader, and sales is a leadership process. Yet, if you’ve got someone who challenges the process, and wants to do things their way, I’m going to suggest that you will know soon that they’re not a fit as a dream customer.

So, there we have it, the Six Ps that you can use around designing and creating the ideal customer.  To start the process of identifying your dream customer, download our complimentary template and start analysing some of your current clients.  Once you’ve completed scoring and added notes, you can begin to build your ideal customer avatar leveraging those results.

All the best, and if you would like some help in even clarifying the dream customer for your business, please connect with the team at PROTRADE United.

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Recommendations

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