We developed and deploy a proprietary customer scoring system that impacts all areas of our diverse make-to-order service companies. We call it “rating and grading.” The process streamlines sales and operations by empowering our staff to say no to misfit customers.
Our “rating” procedure classifies prospects and customers into one of three classifications. They are either bull’s eye (ideal), one-degree (valuable but not perfect), or misfit. This fit score can become ever tighter as we niche down by adjusting one or more of a minimum of three variables. Each rating includes at least one element of geographical location –be it the job location or decision maker location. Each rating also includes a typing question. This typing question can become extremely specific. As the typing question narrows the geographic radius often broadens. We are primarily concerned with the specific problem sets of our customers and making sure we are a best-in-niche solution for them. This means they won’t find a better value than us.
Our “grading” procedure classifies customers into six groups. The goal is to help them progress from prospect to first purchase (grade D), to repeat purchase (grade C), and onward and upward through B status to A status, or a top 20% customer. This group of bull’s eye rated and grade-A customers are targeted for co-development of new solutions. This group we call “bull’s eye A+.” And this is where we focus our engineering-to-order time. The assumption being that what we develop with and for them can waterfall to other customers whom we can further support in their desire to improve.
We only allocate time to bull’s eye prospects. If we happen to win a one-degree’r that’s okay but we know their lifetime value is likely to be lower. We actively turn away misfit prospects –ideally making a recommendation. Our higher graded bull’s eye customers out rank our lower graded bull’s eye customers. As a result they trend toward faster turn around times and volume discounts. This creates stickiness that perpetuate our on-going working together.
Managers are trained on the above. Operations are made aware of the rules of engagement. Sales is held to this standard. Engineering is deployed strategically. Together we help our customers climb.