The value of a customer
Great article on Mitch Free’s blog…
One of my colleagues recently asked me who my most important customer was and I instinctively said “all of them.†Hopefully, you have gotten the message about the importance of loving your customer from reading my blog and columns, but there is a different question posed here. What is the actual value of each of your customers? Assessing value in a business relationship is subjective—it should not always be simply defined. Value is as much about the ancillary costs to you as the revenue you get from the customer.
One of the mistakes I see companies often make is labeling a customer based on their first interaction or their first order. Think about your largest customer, how big was their first order? More often than not, their first order with you was a test, to make sure that the entire process would run smoothly, that they were getting product at a good price and delivered in a timely fashion. Once you passed that test, they were willing to give you more of their work and they were placing larger orders on a monthly basis.
Read the rest here
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