What’s So Wrong About the Wrong Customer?

When entrepreneurs start a company they don’t know “the wrong customer” from “ the right customers”. They may think they do, but they only have their best guess.

And once the business has been started the race is on to determine who “the right customer” is for this new enterprise.

Discover the right answer in time, and you get to stay in business.

Fail to discern “right” from “wrong” and you’re likely going to be a mere blip in the history of the marketplace.

So why do start-up leaders fail to discover “the right customer” for their business?

Sometimes a little voice whispers to the entrepreneur, “it if moves, sell to it.” And you say, “good plan!” And so you go off into the market chasing any kind of customer and any kind of sale you can find.

Still other times the entrepreneur will ignore another little voice that nags, “did we make any profit on this sale?” “Who cares!” you say. “We’re moving product, generating revenue.”

And then there’s that “operations” voice muttering in resignation, “I know it’s a one-off and we’re not set up to do it, but I’ll figure it out anyway.” After a while, every sale is a special case requiring special effort.

So why do entrepreneurs listen to these urges, instincts and wrong-headed desires?

Here’s my answer from being around more than a few start-up leaders:

One, they don’t know they’ll never establish an effective sales process or marketing campaign going after “everyone” as a customer. Nor will sales and marketing professionals want to join a company that chases “anything that moves.”

Two, they don’t know that going after the wrong customer reverses any success they’ve had in creating operational excellence. Forget lean. Forget “repeatable” process.

Three, they don’t know that going after the wrong customer will waste their finite resources of time, talent and treasure. When there is no right customer over wrong customer a differentiating customer experience will never form. You’ll become just one more widget company with nothing to distinguish you.

Finally they don’t know that going after the wrong customer will UP their stress level and the stress level of all who work for them. Good people will leave your start-up. Who needs this kind of stress?

When you discover who “the wrong” customer is for your new business, ignore them.  Even if they do have a few dollars in their pocket and are willing to let you sell to them…just keep walking.

All I can say is “fight the urge!”

-By Michael C. Wagner, CEO – White Rabbit Group

-Check out Mike's blog at  www.OwnYourBrand.com

-www.WhiteRabbitGroup.com