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Top Market Strategy by Elizabeth Rush Kruger

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14.2 JetSpray's Profitability With New Customers

Figure 9 shows JetSpray's profitability segments after conducting profitability segmentation and fully implementing marketing strategies that focus on the top market segment. You can clearly see why your profit from customers will quadruple when your business replaces its less profitable customers with highly profitable, new customers.

  • Customers in top market (i.e., the top 20%) still quadruple the expected profit (i.e., 20% × 4 = 80% of the previous total profit from customers).
  • New customers in the top market segment now replace the 80% of the customers in the lower market segments, so they quadruple the expected profit (i.e., 80% × 4 = 320% of the previous total profit from customers).

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