CORE CUSTOMERS OF THE BUSINESS
Standard 80/20 research shows that nearly four-fifths of a business’ profits will come from just one-fifth of its customers. Those are the core customers, in a mutually beneficial relationship, and they play a vital role in the future of the business.
The role of the core customer for the business
Researching a company that buys and sells goods online found that: only 17% of its customers bring in 122% of profits, the remaining 83 % only cause losses.
4/5 of customers do not communicate much when visiting the website and they often do not stick around for long. In contrast, 1/5 of the customers are extremely profitable for the company. It doesn’t cost a dime to hire them because they are enthusiastic people who are willing to do anything to get access to your website. They like the product so much that they recommend it to people who are just as crazy. And they are so satisfied with the service that they are happy to pay more commissions.
The most important customers of the business are the ones that the business can bring the most value to, and the people who bring the most profit to the business. With the help of this group of customers, businesses can change size and grow rapidly.
The main thing businesses need to do is identify who they are and impress them, make them satisfied with their services – products. Once businesses identify their core customers, focus on them, profits will increase with relatively little effort.
Core customers of the business – who are they?
I. Core customers
They are usually:
- The most loyal and long-time customers of the business
- People who appreciate the company, the products or the services it provides.
- The ones best suited to what the business has to offer.
For example, if your product is groundbreaking, high-end or luxurious – like Rolex or Bang & Olufsen products – your customers should be similarly sophisticated. On the other hand, if your products and services are cheap and cheerful – like Timex or Bush products – your best customers will be happy with that standard.
- Those who are less affected by price.
- Those who complain the least . The company’s biggest customer. However, beware of large customers who do not have these
- qualities, because they can use their power to demand unreasonable prices.
These people contribute a lot to product testing. A line of such products has allowed the company to increase sales over time with each enthusiastic customer. They are the exact opposite of the “unimportant customers” who often get bored with service and leave before the company can break even.
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II. Unimportant customer groups – Troubled customers
It is also important to identify the biggest problem customers of the business, the losers that the company can eliminate. Businesses should boldly raise prices for these people, or cut costs to serve them. The worst customers are the opposite of the best ones. They will usually be:
- The messiest people – they shop around and will leave you immediately when a competitor offers a special discount.
- Those who are most affected by price – always cost a lot of money to serve them.
- People who like to complain whenever possible
- People who aren’t a good fit for your product or service because they really want something more basic or subtle.
- Those who have to spend the most to get it.
Once the business has identified these extremely good and extremely bad customer groups, it is necessary to set an appropriate price for them, and the full cost to serve them, including accurate calculation. administrative costs, such as sales and marketing, operating and research expenses.
Enuy’s secret to focus on core customers for success
Once a high-value customer has been identified, Enuy will focus on taking care of this customer group:
- First, we redesigned the website, fanpage and touch points to fit their needs.
- Then we develop products according to them
- Maintain close relationship with core customers. Focus business strategies and plan good care.
- Finally, we pay them well for recommending the company to friends with similar interests.
- At the same time, we reduce the effort and money spent on finding less profitable customers, and increase the commission rate of the current number of important customers.
Naturally , sales started to go up and profits skyrocketed .
Your company will almost certainly have a similarly lucrative number of small customers. The company’s mission is to build a new system by investigating its customer system, identifying the 80/20 pattern and focusing on that 20% (1/5 of the high-profit customers). .
Businesses need to take samples from each customer group and observe or evaluate the influence of different customer behaviors. Similarly, the full cost of attracting a new customer in each group needs to be considered in terms of how long they will be loyal to the company and the amount of money they will spend in that time.
Good luck with your business!
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