Small companies, above all others, with limited time and resources, need to maximize their efforts to be sure that they are bringing in the right customers, not just any customer. The ‘not right’ customer can eat into a company’s resources diverting them from more profitable relationships. The same goes for sales people.
Struggling or evolving businesses might feel that any customer is a good customer, and while that might be fine in the short term, sustainability demands a focus on the best customers that you should be attracting.
Having a clear idea of who your ideal customer really is – or should be, will help you to formulate your sales and marketing efforts and help you grow. You might even save yourself a lot of time by not chasing prospects that won’t deliver long-term value.
One way to look at customer acquisition is like any investment – such as a piece of equipment you might be considering purchasing.
But many business owners don’t look at customer acquisition in this light and may be missing an opportunity to improve their sustainability.
So, what are some of the components to measuring a customer’s value?
• Purchase – average spend per purchase
• Frequency – how often they purchase
• Paying – how they pay
• Relationship – how they react, relate
• Influence – who can they influence
• Loyalty – price shop, share, rate, review, refer
• Lifetime Value – how long will they stay
So who’s your best customer?