Learn to focus on the customers who bring you the most
Think of the 80/20 rule when segmenting your customers. 20% of your customers bring 80% of your revenue – but you’re most likely spending 80% of your time on the customers who bring only 20% of your revenue.
Segment all your customers into the below 4 types. Then look at your effort to handle the customers in each type. Define what you want from each group and make a plan on how to adjust your attention to the customers who will bring your the most value.
A-Customers are your favourite people they bring you the majority of your business so focus on giving them great service and reward them for their loyalty.
B-Customers should be viewed as an opportunity to convert to A-Customers. Spend time to understand what will drive them to become A-Customers. Develop a plan, adjust your services and products to drive the conversion
C-Customers buy from you but they have little good to say, often complain and agree generally unhappy. they probably need your product and you are their only funnel to it. You have an opportunity to lift them out and into a B-Customer or even an A-Customer. Engage with them, listen to their ‘grievances’ and plan out actions to address those to convert upwards.
D-Customers are not desirable, they have a negative influence on your reputation and brand image. They shout the loudest and demand more service than their revenue warrants. Sell them off to someone who can deliver what they want. Phase them out and make it clear to them they are buying from the wrong company.
If you need help with segmenting and executing plans on how to move your customer base talk to me – I can help you frame the right plans and actions.
LAN Business Consulting 