Tuesday, November 23, 2010

All Customers Are Not Created Equal by Jim Palmer

Just wanted to include this as everything that Jim says in this article is absolutely true.  I hear a wise man say once, "You should treat your best customers better than you treat your spouse, assuming that you treat your spouse with utter respect and admiration."

Enjoy the read.  Joanne

All Customers Are Not Created Equal
Here’s something I’d like you to repeat after me: “All customers are not created equal.” Once again, “All customers are not created equal.” Remember that. It goes back to the 80/20 rule: 80 percent of your business comes from 20 percent of your customers. Knowing that fact, why would anyone not cater to that 20 percent? Every customer should receive great customer service, but those who are more loyal, deserve more.

This is the basis for rewards programs like those offered by the airlines and restaurants. When you travel exclusively with one airline, you build up more miles, and the more miles you get, the more perks you get. Those who have more miles are treated differently… treated better, and there’s nothing wrong with that. These programs don’t arbitrarily play favorites. They simply reward loyalty. Those travelers who are packed into economy class, jammed into the middle seat, are as eligible to sit in first class as those who are doing so. They simply have to spend more and earn more miles. Loyalty programs are great ways to reward your best customers.

Catering to your best customers starts with the 80/20 rule, but continues to the 90/10 and even the 95/5 rules. No matter how you slice it, the greatest percentage of your sales (and ultimately your profits!) comes from the smallest percentage of your customer base. Analyze you customer list and learn who’s spending the most.

If you want to sell more (and who doesn’t!) these are these easiest people to sell to since you already have an established and trusting relationship with them, and your cost of doing business with them is the lowest. High sales and low cost always equates to greater profitability. It’s one of the simplest equations in business, so know who your hyper-responsive customers are and use that to your advantage. Marketing legend and one of my business mentors, Dan Kennedy puts it this way, “If you want to sell more, go back to the people that have already identified themselves as buyers – your customers – because buyers are buyers are buyers!”
Learn more secrets on how to use a newsletter to boost your business in my book, The Magic of Newsletter Marketing - The Secret to More Profits and Customers for Life.

Jim Palmer is known internationally as the 'Newsletter Guru, the go-to resource for smart, effective strategies for maximizing the profitability of customer relationships. Jim is also the acclaimed author of The Magic of Newsletter Marketing - The Secret to More Profits and Customers for Life and Stick Like Glue - How to Create an Everlasting Bond with Your Customers So They Spend More, Stay Longer, and Refer More! Jim is also the creator of the wildly successfulNo Hassle Newsletters.

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