Subscribe in a readerThere are over 32 differentiating factors of profitable customers that increase profits in competitive markets. While some companies struggle competitive markets, many are doing better than ever--largely because they know how to target profitable customers with little-known identifiers hidden in their own customer base.
By focusing on customers who produce the most net income for your organization, by definition, you'll create a greater return on your marketing investment. Seek to understand what makes these individuals different, so they keep coming back for more. Profitable customer identifiers are characteristics primarily held by your best customers.
Review monthly profit and loss (P&L) reports that provide a summary of the resultant revenue produced by each customer. Focus on customers in your top ten percent. To document buying related characteristics, ask the following questions:
Stay away from questions that induce negative thoughts or identify areas that you could improve. Every question must help them confirm in their own mind the specific value you provide. Listen carefully to what these customers are saying and verify any assumption you derive from this exercise.
Asking these questions show customers you're interested in them, plus provides valuable information on how to improve your service to them. It's something you must do before the competition because these questions have the potential to solidify a long-term buying relationship. In just a few weeks, you'll know exactly what makes profitable customers different and will be on your way to find more like them.
/ cultivate-topten | profitable-customers /
By Justin Hitt at July 13, 2003 5:05 AM
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