Not all customers are equal

In fact, using Pareto rule, we know 80% of your profits usually come from just 20% of your customers.

However, Tesco and other big retailers are beginning to realise that it might be more like a 95:5 ratio.

The value of the customer should be evaluated, therefore, not on how much profit each customer contributes now, but predicted lifetime profit of each customer.

Those customers who are ‘serial switchers’ (or rate tarts, or just downright tight-arses) should be quietly, but firmly, disincentivised from buying more from you.

Those customers how pay full price and never complain should be carefully observed, analysed, and then an army of salespeople sent out to find more of them!

This all begins with a good, solid CRM system in place. (We can help with that, by the way)


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