In this regular section, we break down the strategic fundamentals that can hold your business back or propel you forward. This time: making sure you make money from your customers.
Your Marketing Plan should classify customers by the amount of value they bring to your business. Do that by grouping them according to value integers, such as annual spend, gross profit and slice of revenue. You will then be able to focus your marketing and sales activity on the most rewarding customers. Tailor your communications for them.
Armed with the insights from each customer group, you can reduce the cost of serving unprofitable customers. More importantly, though, you can use your Profitable Customer profile to find more.
You probably think you do this already, but when we systematically break out the integers for our clients, many are surprised to see which customers are actually paying their way. It’s a revelation that can bring about a profitability breakthrough.
We will be revealing the full strategic toolkit across the next editions of Breakthrough: The SMB Insider. But why wait? For the full set in much more detail and the option to ask questions that matter to you, book a strategic session with us now.