HEY, My name is Jordan Phillips, and I’m the founder of bmoor.

And bmoor is a social enterprise whose mission is to drive the values of ownership and self-sufficiency within the black community.

And to help achieve this, we host a FREE online workshop every week.

Which is designed to assist black entrepreneurs with their online marketing efforts. In driving more customers & profits to their business. (Which you can book FREE here)

But with that aside, in this article you’ll be discovering what customer type you need to avoid at all costs.

And I understand this may sound counter intuitive.

But marketing is as much about who you’re not targeting, as much as who you are.

So, it’s important you have the correct customer profile, so they align strongly with the goods and services your business provides.

Because otherwise, you will end up with a high percentage of wasted circulation, which equals to wasted ad spend.

As you’ll be promoting to people either not interested in your offer, or even worse, customers who aren’t the correct fit for your business.

And in today’s article we’ll be focusing on the latter.

Because let’s face it, in the eyes of most business owners, how can there ever be a ‘bad customer’?

Since by nature, that very customer will be bringing in money? Right?

Sadly, many entrepreneurs fall in this line of thinking. Which ultimately sees them undermine the value proposition their business provides.

What do I mean by this?

Well, before I explain fully. It’s important for us to explore the three most common customer profiles.

The first profile consists of the customer who only buys premium products. These products tend to fall in the luxury category, and as you can imagine commands the highest prices.

These customers are referred to as high net-worth individuals, who aren’t scared to spend money.

Even though many who fall in this category buy in effort to extend their prestige. What they are fundamentally buying is value.

Because common wisdom dictates that goods and services priced the highest, tends to be of the highest quality.

But this quality metric means that whatever is purchased, won’t need to be re-done or re-purchased for a significant amount of time afterwards.

Since the execution would have been done to the highest standard.

And over a longer time-horizon, means they’re being cost-effective.

That brings us on to the second customer type. A type who doesn’t base their purchasing decision on what’s the most expensive.

But does base it on what provides the most value relative to what they can afford.

Which means they’re willing to pay above the average for their goods and services if the value accrued is justified.

And the ‘value’ component which these two profiles share, is what makes them indispensable to any business with the ambitions of being successful.

Because you can afford to increase your prices with these customer types, without there being a significant impact on the sales generated.

As you have a customer whose purchasing decisions aren’t bound by price alone.

A customer who will grow alongside your business. Irrespective of what your competitors are doing around you.

However, the third and final customer profile doesn’t provide these benefits.

Because this customer type buys solely on the premise of whose selling at the cheapest.

This is a disaster for businesses on two fronts.

The first reason is that you can’t rely on this customer for long-term purchases, since they’ll always be ready to defer to a competitor offering your goods and services at a cheaper price.

The aim of getting a customer is to keep them for as long as you can. But this is almost impossible with customers who aren’t motivated by value.

The second reason is that you’ll be eroding away at your profit margins.

If you continuously reduce your prices in effort to drive more sales, then your business is in big danger.

Especially, if you don’t have the scale of an Amazon who can afford to spread thin profit margins across millions and millions of sales.

And sadly, most business don’t have that luxury. Which makes it even more important to defend your prices. Instead of coveting the interest of a customer who wasn’t ever going to give you their loyalty in the first place.

Whenever you are tasked with the problem of lowering your prices, always revert to evaluating ‘how can you provide more value in the eyes of your customers?’

Which will help you not just maintain your price but will also give more scope to increasing it.

So, remember, not everyone buys based on price. There is a significant number of customers who buy based on value.

And these customers are the ones you want to build your business off.

For more information on marketing and business strategy you can follow us on Instagram @bmoornetwork. Or email us on [email protected]