Are you tired of the slow exodus of valuable customers leaving for competitors each year? You pour thousands of dollars in market research, marketing materials, and some even respond. However, still, they leave for someone else.
What distinguishes valuable customers?
By analyzing your existing and prospective customers, you can determine which ones best meet your business’s aims. Of course, these will vary according to your company and sales strategy.
For instance, if you are releasing a new product, your objective should increase sales as rapidly as possible. Yet, if you are experiencing cash flow difficulties, you may place a premium on prompt payment.
However, the majority of businesses desire the most profitable clients available. Customers are typically more valuable when they:
- Purchase products with a large profit margin
- Pay the full price without bargaining for a discount
- Place a few large orders rather than numerous little orders
- Make no changes or cancellations to orders
- Pay promptly, without making you wait
- Do not necessitate substantial post-sale service
You can determine the profitability of each customer by analyzing your records. In some businesses, a small number of clients account for nearly all profits. As a result, some of your most profitable customers may be among your largest. You may even discover that you would be best off without some of the not valuable customers.
Consider looking ahead as well. For instance, a future market expansion may lead to increased profitability for you on current customers. Therefore, it’s critical to foresee changes and their potential impact on various clients.
If you know who your most valuable customers are, you'll be able to retain them. Keep in your mind that investing in customer loyalty is less expensive than acquiring new customers.
Communication with valuable customers
The problem isn’t reaching these valuable customers; it’s the effectiveness of your communications. For communications that improve customer retention, you need specific sales strategies that influence behaviour. How exactly do you design these communications so that more customers stay than leaving?
You can design your communications to improve customer retention by providing a relevant message that starts a conversation with your most valuable customers.
Involving your valuable customers in a conversation about problems they experience and solutions they desire is one of the best ways to have more responsive, loyal, and attentive buyers. Here are several customer management strategies for designing your communications to retain more profitable customers.
1. Less broadcasting and more dialogue at the level of valuable customers
Broadcast messages are fine when seeking a large audience of qualified prospects. Still, once a customer has invested in your solution, it’s more effective to continue with meaningful dialogue around their interests. So, how often do you talk with valuable customers about their situations? Find out what makes their situation so unique and discover how you can keep them buying.
2. Ask questions that identify needs and confirm benefits
The more you know your customers, and the more they understand the value of the business they’ve already done with you, the greater their loyalty. By asking questions, you keep customers thinking about your business in the context of their concerns. What questions would reveal what customers really want to purchase?
3. Invest more face-to-face time with potentially valuable customers
Suppose you’re not physically seeing your most valuable customers at least once a year. In that case, you could be missing huge opportunities to improve your value to them. When you get out there to see how your customers use your solutions and in what conditions, you’ll better understand their desires. Do you know what your customer looks like?
4. Bring customers together in small groups
When you can’t go to them individually, bring customers together in groups to discuss what they like about your solutions. These groups should help attendees get more from what you offer, expand the value in what they already own, and share tested methods. How could you bring valuable customers together in a way that expanded the value of their business relationship with you?
5. Let customers know their business is sincerely appreciated
Say “Thank You” at least twice as much this year as last — the fact is that every dollar gained over cost is feeding your family. These dollars come from customers, and you should respect that at all levels of your company.
Because people appreciate your sincere message contributes to a customer’s decision to continue to do business with you. Do your employees understand how important customers really are to your company?
6. Use research about valuable customers’ concerns and interests
Become an advocate for the concerns and interests of your valuable customers to discover new opportunities to improve how you serve them. Use what you learn in every message you share across your company. What concerns do customers have that you could easily resolve?
7. Make a study of your customers’ business
The more your team knows about how customers operate, the better you can blend your solution with their objectives. Becoming an expert in the industry of your valuable customers helps you discover new ways to serve them better. What do you know about customers’ businesses that they should know about themselves?
8. Engage for feedback
The more you know about what customers think about your solutions, the better you can improve what you offer. Are you collecting feedback at each customer interaction point? Key areas to understand: what influenced your valuable customers to purchase, what they like about the solution, how they use your products, and what else the product could do for them.
9. Solicit and share customer testimonials
In every marketing or sales message, it’s critical to echo real customer testimonials. These brief but specific messages tell customers that others just like them have something important to say about your solution. Important enough that they would put their full name and company behind it. How are you currently using customer testimonials?
10. Refer new business to the valuable customers
If you want to keep customers while increasing the demand for your solutions, then grow your customers with a passion. How are you helping valuable customers grow and generate new business? By sending new business to your customers, you’ll lock them into your business for years to come.
11. Specialize around clusters and subgroups within your customers
This advanced technique secures specific market shares within your customer base by becoming the best in a few areas. These profitable activities allow the development of specialized tools and solutions that make you the only logical provider within your marketplace. Are there niches inside of your customer base that is more valuable and profitable to serve than others would?
12. Share tools that help customers get more from what you offer
Nothing builds loyalty like after-sales details that extend the value of existing purchases. Imagine a customer satisfied with their purchase, now receiving additional information that extends the life of their investment and keeps them returning to your company. Are your valuable customers fully aware of the techniques necessary to get the most from your solutions?
13. Help valuable customers buy everything that is in their best interest to own
Use a product/service matrix to fill the windows of opportunity according to historical purchases of related customers. This strategy can help unprofitable customers look more like profitable customers while improving their results from your solutions. Are your valuable customers buying everything they should get the most from a relationship with your business?
14. Research other ways to serve customers
Look for the unfulfilled desires of valuable customers using a combination of acquired feedback, researching the customers’ market, and direct dialogue. If you can’t directly provide these solutions, then use inner circle relationships to draw new resources to your customers in a way that extends your value. How else can you serve the customers you already have?
15. Help customers feel like insiders with special tools only available to them
Reward clients for their decision to do business with you over anyone else by providing tools that can’t be obtained anywhere else. These tools help them get more from your solutions, provide additional insights about their situation, and help customers make better decisions. What unique value do customers get doing business with you over anyone else?
Keep an eye on new customer acquisition
Knowing who your most valuable customers enable you to concentrate your efforts on B2B customer acquisition. Often, the most productive strategy is to seek comparable prospects.
Diversification is very important for all B2B companies. It’s hazardous to rely excessively on a few valuable customers. Even if you have a large number of customers, it’s problematic if they all look the same. A change in conditions may result in them all reducing their purchases simultaneously.
For example, if three of your largest clients are headquartered in the United States, a change in the exchange rate may result in them dramatically reducing their orders.
Conclusion on valuable customers
No matter what you do, your most valuable customers must have such a strong feeling of belonging that would have them withdrawing from business with anyone else. One way of doing this is through clear communications that convey your interest in a strong customer relationship.