It’s widely known that the most efficient and effective way to profitably grow any business is to focus resources on delighting the most valuable groups of customers.
If your brand/business is successful in achieving this, it is likely to be growing 2.5x faster than the competitors who are not so successful at delighting these people. How?
By creating customers who highly value, even love what you do for them, to the point that they want more of what you can do and they are highly likely to be strongly recommending your brand/business to other people like them. This is true in any context – business-to-business and business-to-consumer.
The first step in understanding who your most valuable customers are is to define what makes them valuable to your business.
This might seem a strange thing to raise, because isn’t it obvious what makes them valuable to your business?
In a recent working session with a client, we identified 12 criteria that would make their customers more valuable than others and 3 criteria that would make them the most valuable customers. This matters hugely, because the way you define ‘valuable’ will point you in the direction of the customers who create a specific type of value to your business and not the other customers. These customers will become the main focus of your business and not the others. That’s why it matters.
Once you have defined, or maybe redefined the criteria that make your most valuable customers ‘valuable’, then you can begin to more deeply understand them. This will enable your business to develop more valuable propositions for them and in turn for your business, accelerating profitable growth.
So, here are some of the criteria that could define ‘valuable’ for your business.
- Transaction value
- Purchase frequency
- Lifetime value
- Ease of access – How straightforward and commercially viable it is to access them.
- Loyalty / repeat purchase intention / commitment
- Willingness to recommend your brand
There are many more criteria and some might be unique to your business and commercial model.
So what are the ‘valuable’ criteria for your brand that will enable you to identify the 2-3 groups of customers who are the most valuable?
In my next blog, I’ll talk about what you need to know about these groups of most valuable customers that will enable you to develop stronger, more valuable propositions for your brand to offer these people.
Why not call us for a fresh perspective on the criteria that defines the most valuable customers for your brand/business? Call Chris on 01306 400077 or email firstname.lastname@example.org.