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Stars, Thieves, Steady Eddies and Rogues. How would you classify your clients?

by Nomadic Display 27. April 2010 23:21
ClientsWe know that all customers are not equal and any client base will be made up of a mix of customers who fall somewhere in the range from high-value, loyal and low effort, to low-value, disloyal and high effort. In order to develop a marketing strategy that focuses on capturing high-value, loyal clients or “Stars”, you have to know your clients intimately, by understanding their business, their market and their buying behavior, and map this against their revenue spending with you and what products or services they buy.

Categorizing your clients and segmenting your client base to identify your Stars will have many benefits. During the process, you will also identify the customers who fall in the “low-value and high effort” band and who can aptly be named as “Thieves.”

Actually, you are likely to have four broad categories of client; alongside the Stars and Thieves, you will have the loyal but lower sales potential (Steady Eddies) and disloyal but high sales potential (Rogues). With a clear view of your client base, you can then develop a strategy to concentrate your efforts on the Stars and Steady Eddies and avoid wasting time with the Thieves and the Rogues.

The “Pareto” 80/20 principle generally applies here: 80 per cent of your revenue is likely to come from 20 percent of your customers. In other words, you need to put 80 percent of your effort into developing the customers who will help your business grow, and only waste 20 percent of your time on the clients with no great long-term value.

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