Stop servicing break-even customers for more profits.
Stop servicing break-even customers.
If this idea makes you gasp, think harder. You're falling for the fallacy of increasing sales instead of boosting profits.If you stop marketing to unprofitable customers:
- You actually have more time and valuable resources for customers who actually grow your business.
"More than likely, 20% of your customer base is contributing 150% to 200% of total annualized profit (TAP); 70% is breaking even; and 10% is costing you 50% to 100% of TAP," says Atlanta marketing consultant Michael King. Take a detailed look at your customer profitability data and then direct premium services and marketing to customers who count.
Contact us today to see how we can help you target more profitable traffic and customers.Labels: Business Development

