'Power Base'. Your most valuable asset.
The best measure of a healthy, profitable brand and business lie in the quality of the relationship with it's best customers.?
The strength, length and depth of those relationships.?
The 'Power Base'. These are customers that buy more and more often,?and at higher prices.?
Not only do they bring in the majority of your revenue and profit, they also root for you, rave about you, support you and promote you.?
These are your super customers.
If you don’t have them, you don’t have a strong base for your brand and your business.?
You cannot focus on 100% of your customers and do an outstanding job.
It is just not going to happen.?
You cannot please every customer.?
To build a business that pleases all kinds of people and creates different types of value for everyone is a ridiculous notion.?
Take a look at your customer base.?
Analyse which customers are actually good for you, which should you ditch?
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You will have to stop serving some of your customers. Figure out who you are not going to continue to work with.?
List all your customers into 3 different categories.
We use a metaphor from the airline industry - 3 different classes: economy, business and first class.?
How many of you customers are first class customers?
They probably bring in more than half of your money.
They don’t complain about your pricing because they see so much value in what you do. They are willing to pay more and they meet other criteria you have set for what a first class customer is.
Those are who you want to nurture and grow.
Just like in the airline industry, they get the most service, the most benefit.?
Lets’ take a look at your economy class customers. It’s very difficult to serve them really well as they are paying such a small premium that it’s difficult to stay profitable. Do you really want to serve all these people?
Asking for a lot of favours, taking up a lot of energy day in and day out.?
You should not focus on the economy class going forward.?
The ‘Power Base’ is the foundation from which healthy growth is created.?
Performance & Growth Partner
2 年Power customers also become great sound boards and co-creators of great new solutions. They become true partners in their own growth for achievement.
Brand Strategist || I build simple, powerful brands that raise the valuation of entrepreneurial companies. Investors and M&A specialists call me their value enhancer.
2 年Nice thing about power customers - you can also tap them for ideas on how to improve, or even make them brand ambassadors.