In Carl Sewell, Jr.’s book Customers for Life, he says, “whatever strategy you select, make sure it is profitable.”  That means we have to know who our target customer is, focus on meeting the needs of that customer, and let go of the customer that doesn’t fit that mold.

When we’re trying to grow our business, it can be difficult to turn customers away, since there’s such a strong focus on top-line growth.  But as we try to be “everything for everyone,” we end up providing support for products and services beyond our focus, and before we know it, our profit margins magically vanish.

Sewell Automotive believes their customers deserve a premium experience during the purchase stage, as well as throughout the life of ownership.  Their customers believe the same thing.   That’s why Sewell has continued to dominate the luxury car industry in every market they’ve entered.  They focus on customers that share their beliefs.

Do most of your customers share your beliefs?  How much time, effort, and discomfort does your team waste on customers that don’t fit with your company values and philosophies.  What would it do for your profit margins if all those wasted resources were channeled toward prospects and customers that fall within your sweet spot?

It’s our responsibility as leaders to guide our teams in the right direction.  It takes courage, and willingness to take risk.  But it’s this kind of courage that not only boosts our profitability, but creates a legacy for the organization we are leading.  Sewell Automotive is a case in point.

Download Dale Carnegie’s latest white paper on “Recognizing Leadership Blind Spots.”

 

 

Posted by Ryan M. Akins

Investor, Entrepreneur, Listener and Learner. Ryan currently serves as Regional President of Dale Carnegie for the North Texas region. He graduated from The Dale Carnegie Course in 2011.

One Comment

  1. Thats a fantastic reminder. Sometimes we get so focused on finding any sale we can that we forget to ask ourselves if just because we could means that we should. Not all sales are profitable in the long term. For example the customer who is a marginal fit for the product and requires a ton of customization from engineering to “make it work” or the customer who changes what they are doing every week.

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