Focusing on Your Customer

Targeting the Right Customers

 

Not all customers are good customers; in fact, some customers are completely wrong for your company. In many companies, no more than 20 percent of customers generate 80 percent or more of the profit. Successful companies know exactly who their ideal customers are, and they focus their energy on creating products to please them, and only them.

Many customers are what you might call mercenaries. They’re the kinds who, for example, change telephone services several times a year, lured by the cheapest rates and the biggest incentives. When the introductory offer runs out, so do they, long before they can ever be profitable. ...