Monday, 7 January 2008

Pareto the Last Word!

I have shown several ways to use this simple tool on the top 20% of your customer base and previously even suggested that you sack a few customers from the 80%, but what do you do with the rest of the 80%.

Profile the customers in the top 20%, what are their characteristics? What are the common aspects?

Now examine the remaining group and profile them are there any customers with the same or closely similar characteristics? Group them together.

Now target this group as your secondary targets and try to covert them to add to your top 20%.

Any customers that are left over now should also be contacted but not as regularly or intensively as the others.

From now on any prospective customers that you find should be profiled in the same way.

Also you now know the profile and characteristics of customers who you should advertise to and hopefully the marketing messages that will attract them.

Remember the golden rule is to apply effort where it will have the most effect!

Alan Briggs

Dynamic Business Strategies Ltd
Tel: 07917 446068


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