As you know, not all customers are created equal from a sales perspective. Most businesses find that 20% of their customer databases are producing 80% of their sales yet that 80% of their time is spent serving the needs of the 80% of the non-sales-producing customers.
In many situations, I recommend that business owners undertake some customer segmentation activities to identify the profile of their ideal customer, cull the 80% who aren’t as profitable and focus on serving the needs of the 20% more effectively. Nine times out of ten even though they’ve dramatically reduced their customer base their sales still increase.
Here are some customer segmentation tips to help you increase your marketing results… (more…)