First and foremost we must identify the 20% of our existing clients that are giving us 80% of our revenue, or revenue. Then we need to put an aggressive retention strategy in place to keep these customers happy and loyal.
The reason I say this is that these "A" customers are your best sales profit customers. They are Absolutely necessary for your business to survive during a downturn.
These customers are then followed by your "B" customers who are very Beneficial to your business sales profits as they can also become an "A" customer.
As for the "C" convenient customers, don't let them take you down - stay away from investing too much time and/or money with them, unless they have the potential to move up to "B" status.
The "C" category represents 80% of your customers but they are only contributing 20% of your bottom line.
You have heard it before - your existing customers are the most effective, economical and easiest way to maintain and increase your sales profits. Therefore, we need to put our focus on where we can get the best R.O.T.I. - Return of Time Invested.
The best ROTI is found with you're A and B customers. You need to implement a retention strategy with them. You need to build stronger relationships and partnerships with them.
You need to help each other maintain and grow sales profits during the downturn. You need to ask more questions, show concern and listen more. You need to be there for them, and they will in turn be there for you.
With retention strategies also comes regain strategies. What can you do to get lost A and B sales profit customers back. You can no longer just let them leave.
One thing you can do, is take the blame and ask the simple question - what do we need to do to get your business back. If you can do it, you got them back. Then you need to make sure you retain them. If not, you will need to work harder at getting new customers.
What is your gain strategy? In this downturn, you are going to have to be more creative than ever before to grow your sales profits, as you may not have the same marketing budget.
You will need to do more with less to position yourself as an expert in the market and have people chasing you by name. Mind you there are a lot of simple, no cost ways to doing this which I can share with you at another time.
In the meantime, identify where your sales profits are coming from - your A and B customers. Focus on retaining and growing your sales profits with them through maintaining strong relationships and partnerships where you can help each other survive the downturn.
Get those lost A and B customers back with you and on a retention plan.
Finally, position yourself in the market as an expert by sharing your expertise in an educational way that will benefit your clients and prospects during the downturn.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/131674
Article Added on Sunday, May 3, 2009
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