When it comes to your customers, there are the ABC’s with every business. You will have your A-absolute, B- beneficial, and C-convenient customers and as a sales person or a business owner, you need to get your best ROTI. Getting your best ROTI or Return on Time Invested, you should spend most of your time with your A class customers.
Velocity Selling TV Episode 37: Summary of the ABC’s of Targeting
Bob: Hello, and welcome to Velocity Selling TV. My name is Bob Urichuck, founder of Velocity Selling and today we’re going to continue with the interviews towards our CEO of Velocity Selling, Matthew Whyatt, down in the Gold Coast of Australia. How are you doing today Matthew?
Matthew: I’m extremely well Bob. How are you?
Bob: Good. You know, last week in our last episode we talked about prospecting and you shared with the listeners about your ABC targeting model – A is absolute, B beneficial, and C convenient- why don’t you talk to us some more about that and the use of that word, I know we’ve used it a couple times in the last episode, but we really didn’t explain what ROTI meant. So why don’t I just turn it over to you and tell us a little about how you get your ROTI and how you target in on it.
Matthew: Yeah, ok. See look, that’s a really great point. ROTI is- everyone is familiar with the term ROI- return on investment. Now that usually relates to money. Now, money comes and money goes and that’s fine but time only ever goes. And so what we do in Velocity Selling is we talk about R.O.T.I, return on time invested, because you know, we still want to spend time with our families, we still want to have a life, so spending all our life trying to prospect and sell is not the greatest use of our time because we might burn out. So we talk about R.O.T.I, ROTI, or return on time invested and in the last episode we spoke about targeting ABC: A for absolute- they’re the best customers, the ones that pay you what you’re worth, respect what you do- B for beneficial- everybody wins, and C for convenient. Now, I eluded to and you mentioned at the end of the episode the 80/20 rule. Now that’s really important to understand. Now just think about this if you’re a salesperson or a business owner, where do you spend 80% of your time? Is it with your best customers? Or the ones that suck up most of your time, which happen to be your C class customers.
Matthew: Have a think about that. Are you respecting and giving love to your 20%? Are you giving love to those A class customers? How do you actually make sure the stick with you as a customer? How do you make it almost painful for them to even think about using another supplier? So that might be a little challenge for you today to write down one or two ways that you could come up with in your business to show the love to your A class customers. First of all catergorise, figure out who they are, show them some love, and then a drop in, a bottle of wine or a gift of some sort. It’s just a small gift a small act of appreciation, will pay dividends when they come to think about you in their next buying cycle.
Bob: Alright, so now Matthew you’re getting more into what we call a Retain Strategy. How do you retain your existing customers? And this is where every business has to have a retain strategy for at least their A and B class customers and that’s really important, I think that’s good. That’s good Matthew. Anything else you would like to ass to this week’s episode?
Matthew: Well not really Bob. I think that’s, it’s a simple idea, it’s about getting the best return on time invested. Spend the time with you’re A class customers, see what you can do and we’ll talk about this in the next episode. I do get excited and I want to over explain everything or share as much as I can but really find out how to identify your best customers and then show them some love.
Bob: Yeah, I think a part of it to is, why are you in business? And what kind of buyers do you want to work with?
Bob: These are scenarios too and if we waste all our time on our C customers we waste all our time. If we could turn that on our A’s and B’s we can get a better Return on Time Invested and that’s excellent. So what’s the next episode Matthew?
Matthew: Well Bob, why don’t we carry on with the retain strategies and gain strategies that we speak about in Velocity Selling.
Bob: Sounds great, looking forward to next week.
Matthew: Perfect, bye for now.