Profile your best customers

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Most customer bases follow the Pareto Principle. 20% of your customers are likely to represent 80% of your revenue. 80% come either directly or through referrals and testimonials. Further, it's likely that 20% of that 20% - i.e. 4% - will account for 80% of the 80% (or 64%).

It is useful to group your customers based on their current value to your organization. Label your top 4% as your Platinum customers, the next 16% as Gold.  The Platinum and Gold clients account for most of your current business. The next 30% are Silver, followed by another 30% of Bronze. What will it take to convert your Silver and Bronze customers into Gold and Silver? 

We asked that question in a recent planning meeting with a manufacturer. "What does it take to win in a big way with a client?" The team's answer, based on their analysis of their top customer was:

• Build a strong relationship with their operations team, providing their team with a voice
• Perfect chemistry between the service rep and the customer.
• Win the right to do business - for example winning their RFPs
• Make the them feel they are our most important customer
• Provide them with “ridiculous priority”.
• Make our operations personal, knowing our people by name.
• Get them onsite on a regular basis - show them the red carpet.
• Get them to a place where they know all our capabilities and are willing to push us to provide more service.

This insight provided direction on the way to turn existing Bronze and Silver customers into Gold or Platinum customers.

Here's a process you can use:

• Agree on what it takes to create a Platinum customer.
• Identify the gaps between Platinum and each current customer.
• Build a customer specific plan to fill the gaps.
• Execute - specific objectives, personal accountability, follow-up.

Developing your current customers is the shortest distance to increased sales.

Strategic planning is your most important process for keeping the entire team focused on the right things. Check out our Total Quality Planning™ system. It has been proven with hundreds of the "not yet Fortune 500" companies just like yours. Take advantage of our Premiere Strategic Planning Service or utilize our how-to book Where the Hell are We.

John W. Myrna

is co-founder of
Myrna Associates Inc

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Now is the time to shift to growth

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The world economy is moving out of the recession – is your company poised for growth? While you may have been focused on reducing budgets and cutting staff, you know that your company won’t survive and thrive in the long term unless you turn your attention to growth. As the economic picture brightens, now is the time to move from a cost containment strategy to a growth strategy.

If you’d like to learn how to kick-start your company’s growth and take advantage of the economic recovery

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If you can't make the Webinar:

Review our articles on the subject such as: 
How To Ensure Your Recession-Fighting Game Plan Gets Implemented

and Call for a free consultation (800)207-8192

Myrna Associates Inc.
12810 Gaffney Road, Silver Spring, MD 2904-3517
success@myrna.com  http://www.myrna.com
301-680-0035 or 800-207-8192

Copyright 2010 Myrna Associates Inc