Have you ever stopped to think about how your definition of customers shapes what types of customers you get, how you take care of them, and how well they pay you?

Let’s use a new, expanded definition of a customer:

A customer is someone who buys your “stuff ”, at a profit, and then refers other customers.

Most people treat everyone who purchases as a customer. I have found that by defining specifically what a good customer is, business owners can gain a sharper level of clarity. That helps you define who you want to deal with, and with whom you don’t.

Who Customers Are Not:

· If someone has not bought from you yet, then they are not customers.  They are potential customers, or suspects, or prospects and they must be treated differently - marketing channels used, sales psychology, followup, product offers etc… all different.

· Whether you sell hard products or services, if someone buys your stuff and it’s not at a profit… those people are not customers.  If you do not make a profit then you’re not dealing with a customer.  You are probably dealing with a “Grinder”and you cannot build your business on the shoulders of many transactions without a profit. 

What do I mean by profit?

Profit is defined as either tangible – money, asset growth, trade, etc. – or intangible – growth in reputation, feeling of accomplishment, feeling of satisfaction, etc.  If neither one of these is present, then the PITA Principal most likely is at work (PITA  = Pain in the Assets).  Beware!

· Someone who buys your “stuff” at a profit, but does not refer other customers to you might be called a “Sale”.  Sales are good; they pay your bills.  However, they do not grow your business.

A Customer Defined:

Someone who buys your “stuff” at a profit, and refers other customers (i.e. others who buy your stuff at a profit and refer others who buy your stuff at a profit and refer others who… you get the picture), well that person is truly a customer by this expanded and more useful definition.  You can and will grow your business by gaining and keeping this type of person as a customer.

Does this mean that you don’t want “Sales”?  Depending on the industry, you probably still do. As mentioned, sales pay bills. However, customers build businesses. They reliably build your business.

OK, so you have a number of people who you would classify currently as sales instead of customers.  How do you convert them into customers?

You ask them.

Simple as that. What to ask? 

“Who do you know that might benefit from the type of work that we do?  Would you be willing to introduce me to that person (or that company)?”

By inviting the people who currently buy from you to participate in the growth of your business and clientele, you give them the gift of contributing back to you. Plus they get the satifaction of helping contribute your products and services to others who will benefit as well. You invite them to become customers. And it's built into our DNA to reciprocate when someone provides good service.

(The Law Of Reciprocation, read about it in: Influence: The Psychology of Influence by Robert Cialdini PHD)

How well does this work?

In twelve and a half years we've helped hundreds and hundreds of small businesses and entrepreneurs to take more time off and double, triple or more their business - with no marketing of our consulting business. None. Numerous clients in similar businesses have done the same!

How? Sure by doing what we do best… and by asking this question… “Who do you know that might benefit from the type of work that we do?  Would you be willing to introduce me to that person (or that company)?”

Now, what would asking it do for your business?