When it comes to modern sales techniques, whether you’re selling to individuals or other companies, you need to understand a range of theories. By grounding your sales techniques in effective and proven theories, you’ll be able to increase sales and communicate effectively with clients and customers. An essential part of modern sales training courses is covering a range of theories, including client profiling.
Whether you’re looking for comprehensive sales training courses, or specific telemarketing training courses, we are here for you. Our experienced team can help you to increase your sales and engage with your customers on a deeper.
What is Client Profiling?
Customer / client profiling is a one of the most effective and commonly used techniques in modern sales. Through customer profiling, you can create a dynamic portrait of your customers and clients to make a range of service, design and sales-based decisions.
There are many principles and theories which can have an impact on customer / client profiling. Some of the factors which are likely to be considered as part of the client profiling process include:
- Age and Status.
In addition to the above factors, one of the most common sales training theories which is relevant to client profiling is the Pareto Principle.
What is The Pareto Principle?
The Pareto Principle has been found to apply to many situations, including sales. For example, 80% of your sales come from only 20% of your customers. Or even, 20% of your sales staff makes 80% of the company’s overall sales. 20% of all input (effort, time and resources) account for 80% of all output (results and rewards).
How is something like the 80/20 Rule relevant to modern sales training courses? Well, if you can discover which customers fall into the 20% bracket that makes up 80% of your sales, you can aim your focus more acutely on these valuable customers. Also, you can home in on the characteristics of the 20th percentile customers and then find other customers that share those characteristics. With this information, you’ll be able to grow your business and your audience dramatically.
Is the Pareto Principle Exponential?
Recently there has been a new take on the Pareto Principle by an author named Perry Marshall. He has found the 80/20 Rule to be exponential. This discovery means that, with effective sales training courses, you can zoom in even closer! As such, you’ll be able to find the perfect types of customers that your business wants and needs.
We know already know that 20% of your customers make up 80% of your sales. However, there exists an 80/20 Rule within this 20% of customers as well. The top 20% of the top 20% (calculated as 4%) represent 64% (calculated by multiplying 80% with 80%) of your sales. Now you can look at that 4% group of customers and narrow down their shared characteristics. Then go look for more customers that are like them. This can be scaled to the third and even fourth power, especially when the numbers are large enough.
What Factors Should I Consider as Part of the Pareto Principle?
So, now that you know a bit more about the Pareto Principle, how can you put it to work? The easiest, and most logical, starting point would be your list of current/existing customers. Any sales training course with your best interests at heart would recommend considering:
- Who Bought Most Recently?
- Which Customers Buy Most Frequently?
- Who Has Spent the Most Money?
As soon as you have answered these three questions, you have found your 20%!
Adhering to the 80/20 Rule doesn’t mean you start neglecting the other 80% just because they don’t bring in enough sales. They are still important. That 20% simply allows for you to become more engaged, figure out your target market and home in on the people who are truly interested in what you have to offer. Also, choose to consciously rid yourself of customers who cause problems such as wasting valuable phone time with salespeople or who change their mind numerous times without making a true commitment or ever sealing the deal.
How Can I Carry Out Client Profiling on New and Existing Accounts?
Thanks to effective sales training courses, you’ll be able to effectively carry out client profiling on both new existing accounts. When beginning a thorough profiling strategy of new or existing clients, there are many factors you will need to consider.
Some of the sales training questions that you will need to take into consideration include:
Do I Have Sufficient Client Knowledge?
- Do I Have a Clear Understanding of Their Organisation / Lifestyle?
- Where is the Company Heading and How do They Plan to Get There? What Issues Does the Client or Customer Face?
- Do I Understand the Client’s / Customer’s Short or Long-Term Objectives and Priorities?
- Who are the Main Decision Makers Affecting the Buying Decision?
- Am I Working to Target the Right Decisions Makers?
- Do I Know What Keeps These Decision Makers Awake at Night?
Is the Client / Customer A Good Strategic Fit?
- Does This Client / Customer Profile Fit into My/The Company’s Business Goals and Objectives?
Does My Product Fit the Client / Customer’s Needs?
- Do I / We, have the Right Products or Solutions for This Client’s Needs?
- Are Our Products Superior to Our Competitors?
- Do Our Competitors Have a Better Fitting Product?
- Does the Client Understand the Return on Investment (ROI) that Our Products can Offer?
What is the Value of Our Relationship / Is There a Good ROI?
- • What are the Short-Term / Long-Term Opportunities with this Client / Customer Profile?
- Is Their Business One-Off, or Likely to be Repeated?
- How Much Will We Make Off This Customer / Client?
- Are They a Major Player?
- Can They Offer Good Contacts?
- Are They Likely to Work as an Advocate?
What Kinds of Budget Are They Likely to Have?
- If This Customer Profile Has a Budget, How Much Are They Likely to Spend?
- Will They Have Funds Specifically Earmarked for Your Products / Services?
- Will There Be Any Issues – for example, Might They Want the Product but Have No Funds or Approval?
- What is the Client’s Buying Process / Cycle?
How Urgent Is the Client’s Purchase Likely to Be?
- Does the Client Have a Sense of Urgency?
- Are They Likely to Act Soon or at Some Point in the Future?
- Is the Client Enquiring, Comparing or Simple Stringing You Along?
- How Does the Client / Customer Make Decisions on Products and Services?
How Easy and Simple is The Transaction Likely to Be?
- What are the Terms and Conditions (If Any) We Need to Adhere to in Order to Complete the Deal?
- Will They Adhere to Our Terms and Conditions?
- Are They a Good and Reliable Payer?
- How Easy and Responsive Are They to Communicate With?
- How Powerful are Legal or Procurement Regulations Vs the User / Buyer?
What is the Level of Access to Client Champions and Coaches?
- As Part of This Sales Process, Do We Know People Who Want Us to Succeed?
- Could They Provide Useful Information, Giving us a Competitive Advantage?
- Are These People Spread Across the Buying Organisation, or Concentrated in One Department?
How Likely is it that the Client Advocates Our Business?
- How Willing is the Client to Refer Us Internally/Externally to Other Teams or Organisation?
For Industry-Leading Sales Training Courses, Call Sales Training International Today
Here at Sales Training International, we can provide a complete range of sales training courses to suit your needs. Our experts can help you to develop client profiles, whether you’re selling services or specific products. We can ensure that your business has all the sales techniques it requires to grow in both size and revenue.
Whether you require professional sales consultancy services or industry-leading sales training courses, get in touch today. You can reach our specialist team directly by calling us directly on 0845 8901701. If you prefer, you can also send any questions or concerns you might have through our simple online contact form. Our sales training professionals and consultants will get back to you as soon as possible.