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Monday, September 04, 2006

All Customers are NOT Equal - How to Find and Do Business With Profitable Clients

All Customers are Not Equal…

You may have heard it said that 80% of your business will come from 20% of your customers but HOW do you determine which 20%? More importantly, How do you assure your marketing dollars are reaching the Right future customer: The type of customer that will continue to use your services and spread the word about your company?

Typically, customers fall into one of four general types:

Low Acquisition Cost
High Utilization of Product or Services

High Acquisition Costs
High Utilization

Low Acquisition Cost
Low Utilization

High Acquisition Cost
Low Utilization

With modern technology it is possible to easily compile critical information about your clients and their purchasing/usage habits in order to create a “profile” of the type of individual who will most greatly benefit from your product or services BEFORE spending your hard earned dollars on a generalized campaign that may reach many people but fail to deliver the type of results desired.

Internal Business Process & Design

Everyone understands that some services are required to conduct the normal day to day business function but do not generate an actual income – for example, ordering office supplies is a critical function when you run out of office supplies and can create inefficiencies or even lost business…but it does not create profit on it’s own. Understanding your cost and profit nodes is the next critical step in determining what areas to concentrate on and which to avoid. It is also imperative in determining your short and long term strategic analysis with particular attention to reducing costs or improving productivity for borderline situations. For example, perhaps your company requires extensive training or travel which has traditionally been required in order to conduct business or meet regulatory requirements but generates little “profit”. Via the proper implementation of web based meeting and training platforms, the “High Cost – Low Profit” business requirement now becomes a “Low cost – Low Profit” or even “Low Cost – High Profit” endeavor.

Low Cost -High Profit

High Cost - High Profit

Low Cost -Low Profit

High Cost -Low Profit

Find out more information on how to identifying your target population and create tools to reach them or evaluate how technology applications impact your bottom line!

For more information please visit my website at:

or contact me via email at:


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