Earning More From Fewer Clients
Do you sometimes feel like you're running around most of the day chasing new business, while your existing clients bombard you with queries and complaints? If you're serving far too many customers for far too little gain, you may want to consider a new strategy - customer segmentation.
Customer Segmentation Explained
Customer Segmentation is a marketing strategy which aims to bring the right kind of clients to your business - the kind who are likely to buy your products or use your services.
By breaking down the market into categories of people with specific needs, tastes, and past behaviours when it comes to the goods and services they consume, customer segmentation allows you assess your potential customers and decide who to target with your marketing efforts.
You will then be able to tell which customers are likely to buy goods and services that you can produce at the highest profit, and focus your efforts on attracting this type of customer. In this way, you'll be making more profit with fewer clients.
Applying Customer Segmentation in Your Business
At first glance, it may seem like customer segmentation is too good to be true - after all, how can fewer clients equal more profit? However, if you consider that each of your new clients will be more likely to place orders with you, chances are your business will make more money while demanding less of you, and that may be the perfect solution for an overworked entrepreneur.
If you have a marketing background, you may already be familiar with the ins and outs of customer segmentation. The process involved can sometimes get a little technical, with some marketing professionals using statistics and computer models to profile the customer base of a given business with the goal of identifying the ideal target market for its products and services. This information can also be used to develop new products and services that meet the needs of your existing customer base, allowing you to retain good customers and gain new ones.
If you'd like to implement this innovative strategy in your business but aren't sure how to go about it, speak to your financial advisor or a marketing consultant, who will be able to do a customer segmentation analysis on your client base and target market to identify the right type of clients for your business. With profitable business being done on a regular basis, you'll find your bottom line improves along with your stress levels.
About the Author
Nico Kleynhans CFP® is able to make the principles of Financial Management easy to understand. By means of games, books and seminars, clients learn how to apply these principles in their lives. He has been called upon by various bodies to provide seminars that educate staff.
He is the author of SENSIBLE FINANCIAL PLANNING SERIES of books. http://www.northwood.co.za
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