Listen & Understand

You are likely to have a mixture of clients that have different relationships with your business. Some will be high value and some will be low value and they will likely have found you through a number of different channels. Pitch presentations, word of mouth, reputation, general marketing, trade shows, online and offline advertising and perhaps through direct outbound activity.

These clients may be one-offs or retained business and will be representative of your Target Market. What you really want to know is what is the most profitable business over time and how to get more of this?

You already know the value of retaining good business and hopefully you have a fair idea of how profitable each client is. What can be really helpful to do is to look at your Customer Lifetime Value which is the total £ amount a customer spends with your business during the lifetime of the relationship and estimate how profitable this relationship is by deducting the cost of acquisition and servicing of the relationship. You’ll find that some business is better than other business.

The benefit of direct outbound activity is that you pre-define what type of customers you want and only target this. Depending on markets you service it can make sense to define this by: industry sector, specified business activities, company size, geography, propensity to repeat purchase / retainer; and even down to a list of specific companies.