Find your ideal customers and then fire the rest. Sounds like madness, but could be a winning customer strategy
Watch the video below to get proven insight on improving your customer strategy. Learn why your ideal customers should take centre stage and why you ought to fire your unprofitable customers. Get Markedu newsletter for more tips
Focus on profitable customers
In the video above customer strategy expert Michael Leander (founder of Markedu) and feedback expert, J. Christian Andersen (CEO of Relationwise), share points on customer strategy. There is a lot of truth behind the title “Find your ideal customers – and fire the rest”.
Crafting a solid customer strategy is one of the most ignored aspects of business and marketing.
While most businesses are able to quickly discover whom their “best customers” are in terms of revenue, most businesses are unable to easily pinpoint the most profitable, let alone non-profitable customers.
It is understandably difficult – or should we say requires a bit more than merely organizing a few social media posts.
Because there are lots of moving parts involved in gauging the profitability of individual customers. But it should be a focus area now. We’ve got all this readily available software, which can help us do things like lead scoring, customer grading and such.
Determining customer profitability involves a range of elements including:
- past gross profit
- future gross profit potential (customer lifetime value)
- the present and future cost of servicing the customer
- your overall capacity for serving outliers
- your capacity and your strategic reasons for investing in growing a given customer
In this day and age, many marketers are looking for message amplification. Therefore, there might be a few other components to take into consideration.
One of which is the referral power of a given customer. Sometimes it pays to keep an unprofitable customer around – in particular, if a given customer is a true influencer. Make that customer happy, and give yourself the opportunity to earn new referrals, get increased exposure etc.
This, of course, is also true for word of mouth influencers.
The danger of attracting the wrong customers – focus on your ideal customer
Lots of businesses haven’t defined their ideal customer. That’s a problem. Because if you don’t know who your ideal customer is, you are likely to be targeting the wrong prospects.
While all the hype currently is about personas, the harsh reality is that the financial aspects of doing business often isn’t taking into account. As a result, there is a very real chance that your defined personas aren’t doing you any good.
We’ll cover how to define your ideal customers, how to use twin-segmentation and hyper-targeting in a future post. In the comments below, please let us know your thoughts and/or efforts on finding your ideal customers.
What to do next?
> Get Markedu’s Newsletter for more marketing and customer strategy tips
> Visit Relationwise to see how their easy-to-use software can help gauge NPS for customers and employees alike
> Contact Michael Leander for consulting inquiries