A Tiny Share of Your Client List is the One that Delivers the Majority of Your Profits
The 80/20 rule of customers profitability
Your clients are not all the same. Managing them, all the same, is the greatest sort of injustice you can do to them.
All customers should be treated according to the client experience criteria you set for your business.
But there is a particular list of customers for whom you absolutely want to be aware of the value of taking that further step, that different words, that different sales plan, that extra care or service.
If you have a mindset of total equality of customers, you need to quickly remove that mental setup when thinking about your business, customer service, marketing.
Let's start with some easy steps to maximize your actions:
Step 1. Your Awareness
Check this questionary here!
- Have you classified the “big buyer” on your client list?
- Those customers who spend more than others, more frequently?
- Have you classified the customers who enjoy spending time with your business from your client list?
- Do you communicate with them in a very different manner, independently from all other consumers?
- Do you recognize to openly appreciate the experience that they are your customers?
- Do you interact with them more frequently?
- Have you allowed them to get more value out of your company, so they might have the choice to access special benefits?
- When you do marketing and copywriting, do you craft it seeking to target your best buyers persona?
As we said, being a smaller business, You have to determine how much you can invest in attracting, retaining, and satisfying your best customers. You don’t have infinite resources.
You need to be decisive, keeping them from you and going to your competitors.
You can allocate a specific budget for that best buyer’s list and go above and beyond.
I trust that it might be obvious to you why “treating everyone the same” as a business owner is dull.
So let me ask you now one more time:
- Why do you believe that advertising is something bespoken only for big companies?
- Why do you still believe that with advertising you just lose money and that it doesn’t do any sound to those who have a tiny company?
- Do you think that it would not produce you benefits to sit, strategize and focus on acquiring new clients that respond to that astonishing 20%?
You decided that it is worthy of attracting more clients from that 20% bracket? Very well done. Now keep reading the step nr.2.
Step 2. Where are your most profitable customers?
Now let’s put your energy and efforts to find where your best customers hang out, in the physical world and the online world!
As also Russell Brunson would say:
Think about it, because you should already know extremely well who they are, where they hang out, what they need or search for, what they buy (not only from you but also think about what they like to buy from your competitors. Ask your staff!)
Step 3. Optimize the lifetime value of each customer
A customer stays with you for 2 years and frequently buys goods from you 10 times a year, from which every time you get € 40 of net margin. This means your customer has an average lifetime value of 400€.
The best way to increase the lifetime value is to put in action all strategies to induce the clients to their greatest potential value.
Don’t be afraid to make new offers.
Don’t have hesitations when you wish to tell enthusiastically your customers about new products crafted and implemented just to help them solve a very crucial problem or aspect of their life, work.
Highlight your business member messages on being better than your competitors to resolve a specific problem and meeting your customer desires.
Strengthen your marketing strategy based on a robust model full of benefits, information, and problem-solving for your potential customers and prospects.
Keep your focus only on what really matters for your best clients!
Now I want to bring you back to reality, to your true and only interest, that is to attract more customers from that 20%, that is to sell more, the conflict that exists between the priorities of a large company should not even concern you because it only risks to divert you from your only priority.
You absolutely must never ever again think about spending a 1 Usd on marketing and advertising that doesn’t bring you back directly and quickly 2 or 10 Usd. End
Also, here in Cambodia, as well as in Italy and every other country, every small entrepreneur has only one purpose when investing in advertising, and that is to find more customers to sell more.
On the opposite of what a big business does when it allocates a budget for an advertising campaign and searches for an agency, they have this in mind as their priorities:
Pleasing the board members and also different supervisors (that comprehend NOTHING about advertising in almost all situations);.
Pleasing vendors, investors, and partners;.
Show up “trendy” for the stock exchange;.
Show up in the proper means for the media;.
Develop “brand identification.”.
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Let me get sure I understand your issue correctly
Customer service is everybody’s task, and being the first individual to talk to a client with a concern is a terrific possibility to support consumers.
Consulting your client until you clearly recognize the customer’s issue, maybe reformulating the problem and repeating it back to them (for the sake of clarity, which is always a great key to help a client), you will be qualifying the issue.
Qualifying a customer’s problem will bring you a lot of advantages:
Now put yourself in the shoes of your customers and tell me what you would love to perceive from a business:
Possibly solving very easy trouble promptly?
The business leaving you with a favorable long-term perception of availability?
That you always get clear instructions concerning product use so you can truly avoid additional phone calls to find the customer service team later on?
Let us know if we are wrong!
We link the gap between advertising and marketing, sales, and assistance, with an aware client community and proper consumer understanding.
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To continue to be the copy, of the copy, of the copy to die weakened in a world of copies makes very small sense nowadays.
The unique way you have is to present yourself as completely different, to have a sole and special positioning compared to all your competitors.
Never forget the urge to be exceptional and totally distinct from the rest of the game.