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Who are your best (and ideal) customers?


Ideally you should have a profile of each customer type/segment

  1. A consumer profile.
  2. A business customer profile.

How do you indentify your best clients?

Your best customers are the 20% segment that delivers 80% of your profits.

Action points

  1. Use lifetime value to calculate their value to the business.  Then rank each customer type to see which is most profitable.

  2. Recency, frequency, monetary value analysis is commonly used to determine who your best/most profitable clients are.

  3. Using a Net Promoter Score may also be valuable to you as it pinpoints who is an advocate of your business (and who is thinking of moving to your competitor)