The first step in determining an appropriate marketing strategy is to map out your customer base and determine which group your customers belong to. And yes, you do that through the Customer Pyramid. In the previous blog ‘The first step in determining an appropriate Marketing Strategy: the Customer Pyramid’ we’ve refreshed the memory by following the Customer Pyramid of Jay Curry. According to Curry, there are five strategies that can be applied to the groups in the customer pyramid. In this blog we’ll cover these strategies. So are you ready for the second step?
Hold and keep
The top segment of your customers -the A, B and C group and therefore the 20% which provides the majority of the turnover- is a loyal group and through constant purchases they ensure the majority of the turnover. Sales growth and profit don’t apply to this group, but retaining the top segment is extremely important. And that’s why the marketing strategy considering this group focuses on maintaining the relationships. So approach your top segment individually and in their proper way.
Promote and grow
You get the most turnover from your top customers, but how do you ensure that this group grows? Easy! By increasing the existing large, medium and small customers (the B, C and D group) on the customer pyramid. Even though these customer groups are loyal, the space for revenue growth is still there. How? By providing them also with a personal approach and a specific plan to get them up the ladder.
Turning and analyzing
Small D-group and inactive customers generally generate little to no sales. And that’s fine if you don’t have a day job regarding them. Do a cost-benefit analysis and see if it’s in your favor. Is the result negative? Check whether the collaboration still pays off, because the time and energy you spend on this can be invested in customers who do have potential growth and profit opportunities. Exciting? Yes, but an entrepreneur dares to choose to grow his or her company and that can only be done by being focused.
Recruiting and bringing in
Prospects are potential customers who meet your customer profile, but which you don’t yet count among your customers because there hasn’t (yet) been a cooperation. They’re ideal for bringing in, but how? Simple: by taking action. Read your marketingplan and remind yourself that entrepreneurs must continuously make acquisitions and go networking to get in touch with potential customers and even more important: to stay in touch. So plan a time slot for this and get started!
Identify and meet
Suspects don’t know your product (yet), but are potential customers. To find out if they suit you, it’s important to apply a strategy where you make the first contact with a suspect and even better: make a prospect. This strategy applies to the suspects, because these are the people who don’t know your product at all.
Do you want more customers? Let’s discuss the possibilities! It’s amazing what happens over a cup of coffee.