Nightmare Customer Criteria


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By Steve J Larsen. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

For a "dream" customer to exist, there must also be a "nightmare" customer. Defining one is as important as defining the other. Here's how and why…

In Tim Ferriss' book, The 4-Hour Workweek, he discusses the Pareto's Principle or the 80/20 Rule. In the context of our episode today, 80% of support issues will be caused by 20% of your customers. We can call them customers from hell, but remember, they are paying customers.

To avoid this situation as an entrepreneur, you should have in mind who your dream customer is and work backward on how to sell to them. This is almost the reverse of what we are taught.

The main reason we should define our dream customers is to protect the happiness of our teams and ourselves. With a dream customer, you can set the culture and expectations around fulfillment.

Tune in to this episode to learn the criteria for defining both a dream and nightmare customer and how to design your business with this in mind!

Key Takeaways ⏲

- Criteria for choosing your dream customer (00:50)

- Why not every customer is a dream (06:20)

- You can design your dream business (08:45)

- Dream customers vs. nightmare customers (13:40)

- The 80/20 principle of distinguishing customers (16:06)

- How to limit nightmare customers from your funnels (17:40)

Additional Resources

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