Bill Canady identifies "Quad 2" customers: existing, creditworthy buyers currently purchasing low-margin products. These customers are a hidden profit opportunity because they already trust your company. Most businesses miss this because sales commissions reward tail products the same as higher-margin core products.
Quad 2, we're gonna develop those. Those are the A customers buying the tail products, right? They're great customers. They also buy products you don't love. These are good customers, proven creditworthy, already buying from you, who are buying the wrong things from you. That's right. Now we gotta figure out what we're gonna do about it. Well, the action is to cross-sell the core. Now, this is the cheapest gross available in any middle market business, and almost nobody works it systematically. Because sales compensation pays the same for a dollar of tail as a dollar of core. Quad 2 is a list of names you already have with a relationship you already own. That's right, it's yours.
