Customer assessment is imperative to grow your existing business
In order for your existing business to thrive you need to be able to successfully manage your existing customer base. To do that you need to segment your customer base for further assessment.
Customer segmentation should be done based on:
- Customer Attrition Risks
- Customer Profitability
- Customer Purchase Size and Frequency
Each one of the segments created above should drive the right marketing strategy, e.g. High attrition of profitable customers that buy a lot and often should drive a different strategy than low attrition customers that aren’t profitable and buy little and not very often.
Bear in mind that depending on your type of business and market differences (B2B vs B2C) you might not have to create all segments possibilities mentioned above, e.g. a profitable B2C retail customer segment might imply that the segment purchase size is large. On the other hand on a B2B model you might have customers that even though their purchase size is large they aren’t profitable. In this particular case you might be interested to differentiate between profitability and purchase size in order to build a strategy that will turn the large buying but unprofitable customers into profitable ones. Also bear in mind that there are not strict rules in marketing and even though a non-profitable, low-size purchase segment might suggest a strategy to ignore these type of customers it could be some exceptions to that rule.
All these segments will not only drive the strategy but also the way you should invest your marketing money with each one of your customers. Further profiling might be needed which is discussed in the ‘3 simple steps in a Direct Marketing campaign’ section to make sure you achieve the most relevant engagement possible.
A thorough analysis of your existing customers will help with your new customer acquisition strategy; as you learn who are your best customers and how to communicate with them successfully.
Contact German Sacristan on 01753 215307 or email: email@example.com for more information.
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