An underused feature in both QuickBooks and Point of Sale (POS) is Type. This feature can help you identify your most profitable type of customer. Both products have reports to show Sales by Customer Type. This can be a great way to see which type is generating the highest revenue for you. You could then do more targeted marketing – where to advertise, what associations to join, what media works best for that group. This type of information can help work smarter, not harder and improve your bottom line. You can also filter other reports by type.
POS has only Customer types, but QuickBooks has Customer, Job and Vendor types. All 3 can be very useful.
Even if you have only 1 or 2 types, it still helps you narrow down the list. But if you really want to identify an ideal client, it helps to have more than 2 types. Here are a few examples:
• Consumer, Business
• Industry sectors
• Retail, Wholesale
• Geographic location
• Government, Non-profit, Commercial
• Suburb, City
In QuickBooks you can also have sub-types.
• So, if you have a consumer customer, perhaps a key demographic information such as gender or age group or even relationship (family, employee)
• Retail – What type of retail? Food, hardware, pet supplies, beauty products
• Wholesale – perhaps region, type of store, size of store
• Non-profit – perhaps more specific – associations, hospitals, schools (even type of school)
QuickBooks often has source of lead for Customer Type. Personally, I prefer to use a custom field for source of lead so I can be more specific about the type of client
In QuickBooks, you can also have Job Types (and sub-types). This helps you see what types of projects are profitable (or not). The more specific you can be, the better you can identify a profitable niche and better target your marketing.
• Decks, Kitchens, Bathrooms
• New construction, remodel
• Logos, Brochures, PR
• Property Management, Fix ‘n Flip
You can even use Vendor Types (and subtypes) to help you quickly generate lists. Some examples would be:
• Type of subcontractor (electric, dry wall, paint)
• Type of supplies – home accessories, jewelry, pet accessories, organic food
• Tax Agency, Supplier, Bank
Again, you could add region or some other helpful delineator if you want to use a combination of type and subtype (for instance, subcontractors in given regions)
So here’s how you set them up.
• In QuickBooks, you can select Add New when you are in a customer, job or vendor edit screen (on left) or you can click on Lists>Customer and Vendor Profile Lists
In POS, you set this up in the Company Preferences>Customer
Both in QuickBooks and POS, you then have a drop-down list from which to choose.
Let us know if you would like assistance in setting them up (we can give you tips on quickly updating your customer lists) or getting special reports.