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.