shared from FutureSimple.com
If you believe in Pareto’s law, and you should, then you understand that 80% of your business comes from 20% of the customers. If this is the case, it means that some customers are better than others…but why?
First, you’d need to understand who your best customers are. That’s fairly simple though. For most businesses, the best customers are those who are resourceful, don’t hesitate to pay a high price for a good service or product and come back time and time again.
How do you find which customers fall into that category? Well, You can either manually review your sales for the last year and use an excel to make some analysis, or better yet, you can use a small business CRM.
Once you’ve identified those customers it should be your number one priority to keep them happy. Promote them to No. 1 customer status and get to know them, as they are likely to respond to a more personal approach. Contact them regularly, and be willing to go the extra mile for them. These are the customer’s that already believe in your product or service so by giving them a bit of extra attention you will have a customer for life. Don’t think that just because they are already loyal that they are likely to stay that way forever. Even already loyal customers require commitment, using a tailored approach.
Great Source for Feedback
Loyal customers are also the best to ask for real, honest feedback – not only will you gain great testimonials to use in your marketing and PR, but you will learn valuable information on what keeps them coming back. Don’t just file that information away in the back of your mind…use it to get more loyal customers! You will probably find that most of your best customers have one or more characteristics in common. Those characteristics could be the key to gaining more loyal customers just like them. You may find that your most loyal customers love the fact that you listen to them, they may love the speed at which you create your product, they may enjoy having the opportunity to collaborate with you, or they might just love your price! Whatever the reason, this information is small business gold dust, so don’t let it go to waste.
Then, There’s the Other Customers
Conversely, once you have identified your best customers, you may find that you can now easily identify your worst customers by simple deduction. By worst customers I mean those who do not buy frequently and those who require a lot of manpower to satisfy their needs. It’s worth looking at ways you can turn your worst into your best, or at least bring them up to middle-of-the road status using the information you gained on your best customer’s characteristics. By changing your strategy using the criteria set out by your top-level customers you can work on creating more customers of a similar mindset. But don’t worry if you can’t quite get there with everyone – it is better to realize quickly that some customers do not fit with your culture, values, or even your long-term goals and never will. In that case, it is better to cut your losses and spend your time with your already loyal customers!
Like I said, a small business CRM can help you understand who your big customers are quickly and effectively. This way you can be sure that you are making the most out of your existing accounts. A good small business CRM will have a designated report that will show who are the customers that bring in the most revenues.