Below are some excerpts from an article posted by Inc. Please read the full article for more information.
Profitable growth is more achievable if you focus on identifying your most valuable customers–and keeping them happy.
One of our clients in the security business found itself facing significant headwinds to achieving profitable growth. The company’s customer portfolio was eroding due to low customer satisfaction and many of the customers that were still around were unprofitable. The organization needed to focus on its large, recurring customers, and become more systematic about driving value for these customers.
To do this, the leadership team needed to better understand their customers, both from an internal and external perspective. To better position the company to capture market share instead of losing it, we completed a customer profitability analysis that informed three key strategic initiatives across the organization.
[NOTE- read the full article for more information on each of these initiatives]
- Protect the current customer base.
- Expand the customer base.
- Gain a better understanding of “customer value” across the customer base.
What do you do to evaluate your customer base to determine their “value”. “Value” goes far beyond the dollar volume of the business they do with you. Please share your thoughts by leaving comments below!
Great article, thank you for posting it!