| PROFILING YOUR BEST CUSTOMERS | | | | produces 2 to 3 times the typical response rates. Now, |
| Who are your best customers? Profiling and promoting | | | | evaluate every sales and marketing campaign using |
| your most valuable customers is more important today | | | | the parameters of your Benchmark. |
| than ever before...more important than a great product, | | | | PROMOTING YOUR RELATIONSHIPS |
| a wizbang Web site, experienced management, or a | | | | To make each campaign timely and appropriate, |
| solid brand. The fate of large and small companies | | | | consider the stages of your typical sales |
| today is determined by customer experiences, | | | | cycle-ABCDE. For example, when building an |
| opinions, attitudes, relationships, and behaviors. Daunting | | | | Awareness campaign, how meaningful are the offers |
| as gathering this info may sound, you can earn | | | | in your collateral for your Benchmark? Are you building |
| top-of-mind awareness by defining great customers | | | | an appropriate relationship within your finding pool? |
| and delivering experiences instead of products. In fact, | | | | Remember, you can't marry them until you've courted |
| your most valuable customers will expect it. | | | | them, and you can't court them unless they trust you. |
| YOUR DATABASE'S SWEET SPOT | | | | Tagging the ABCDE stages in your database will |
| Let's get started. Consider your current customer | | | | make your messaging more appropriate and genuine. |
| database. Based on customer value, it likely looks | | | | Let's see how we might promote the following |
| something like this. Clearly the majority of company | | | | Benchmark through each phase of the sales cycle: |
| growth comes from the top 20% of your database. | | | | Here's an example of 2 Benchmarks based on |
| To grow business, the old model says to throw more | | | | database results sorted by combined revenue from |
| prospects into the sales funnel. Notice how ALL | | | | self and referrals: |
| customer segments expand. Now notice how your | | | | - Brianna: |
| infrastructure-sales, customer service and | | | | - Ethnic-urban mix |
| support-must match this growth, making your business | | | | - Moderate income status |
| top-heavy. If you're focused on business efficiency, | | | | - Benefits over features |
| you can really only afford to grow relationship-driven | | | | - Micro-business owner (Researcher, email receptive) |
| clients. | | | | - Early adopter (Convenience, image-oriented, |
| So, how can you grow the sweet spot? You can't | | | | risk-taker) |
| simply neglect the loss-leaders because when they | | | | - Trend-setter (Latest & greatest, celebrity |
| leave they'll take a chunk of your business with | | | | testimonials, name-dropper) |
| them...resulting in "loss-leader increase." In February | | | | - Settles for knock-off of original |
| 2009, American Express actually "paid" their "less | | | | - Davis: |
| valuable" customers to leave. Did that work? Google | | | | - Suburbian |
| the keywords "amex pays customers to close | | | | - Higher-income status (tightened purse strings) |
| accounts" to check out the negative press. | | | | - Benefits over features |
| THE UPSIDE-DOWN SALES FUNNEL | | | | - Quick financial decisions (loyal to firms with timely |
| When you direct all of your communication toward | | | | products) |
| high-value clients, you optimize the source of your | | | | - Status symbol (Wants genuine only, not motivated by |
| database-the sales funnel-by flipping it upside down. | | | | testimonials) |
| Marketing to high-value clients fills the funnel with | | | | - Non-patronization (averse to "promo hype" and stock |
| like-minded prospects and customers because your | | | | photos) |
| funnel gets filled by the help of your most powerful | | | | We'll follow our Benchmark, Brianna, along the sales |
| sales force, your "customer advocates." Seth Godin, a | | | | cycle: |
| prominent customer change agent, talks about flipping | | | | In an Awareness campaign, invite Brianna to an online |
| the sales funnel on its side as a metaphor for a | | | | community through cross-linking or search marketing |
| megaphone...thereby empowering customers to | | | | campaigns. Keep the subject matter light, timely, and |
| endorse you and your product. It all boils down to a | | | | fun. Encourage collaboration, and always provide an |
| process of asking, listening, and then acting, creating a | | | | equal-value exchange for any registration. |
| self-perpetuating feedback loop where customer | | | | In a Buy-in campaign, give away an e-book when |
| behavior is analyzed and taken into account when | | | | Brianna subscribes to free outbound communication |
| designing the next communication. | | | | (newsletter). Once you're earned the right to talk to |
| CREATING A BENCHMARK | | | | her, keep it genuine. |
| Let's get to the root of more revenue: Profiling the | | | | In a Commitment campaign, promote a lower price |
| best clients in your business, then promoting them to | | | | point product or service to get Brianna started. Can |
| status of "spokesperson." Your most valuable client is | | | | she customize it? Immediately encourage her |
| based not only on revenues they bring in, but more | | | | feedback, good or bad, then internalize and act on that |
| importantly, on revenues from referrals. For this reason, | | | | feedback. Avoid any implied "handoff" from sales to |
| be sure you're also tracking referrals from | | | | customer service. |
| PROSPECTS. Referral stats tell you who recognizes | | | | Try this for a Dedication campaign: "Dear Brianna, as |
| your product value and who's good at influencing | | | | one of our most valued clients, you have been |
| others. Try this: Sort your database to look at contacts | | | | inducted into our Customer Advisory Board." Send an |
| with the most referrals, then the dollar value of | | | | invitation and SHORT online survey. |
| revenues from each of those accounts. You've just | | | | In an Engagement campaign, find a "cause" or |
| defined the Lifetime Value per Customer, or LVC. | | | | something that Brianna is passionate about. Facilitate |
| Now, let's create a "Benchmark" or a persona with | | | | an event that furthers her cause. Anything from |
| whom you'll qualify all outbound sales and marketing | | | | coordinating an open house to positioning Brianna as a |
| efforts. First, list the most meaningful attributes of your | | | | "guru" for her cause. The idea is to allow her to freely |
| top 3 LVCs, including attitudes, behaviors, sales cycles, | | | | communicate within her exclusive social circle. If kept |
| demographics, and purchases. It isn't important how | | | | genuine, the return on investment will be far-reaching |
| similar each is to the other, rather how different each | | | | and long lasting. |
| is from a commodity-driven customer. We call this the | | | | GETTING STARTED |
| Boxxer Model, a tool for getting you well on your way | | | | To flip your own sales funnel, start by taking a close |
| to building valuable client relationships. Your Boxxer | | | | look at your database. Profiling your highest-value |
| Benchmark will represent a raw lead, a prospect, an | | | | clients will do away with vague marketing speak and |
| acquisition, or a loyal customer, depending on your | | | | drive memorable product messaging and collateral. |
| campaign. Denise Hopkins, VP of Product | | | | Long-term client relationships will attract healthy |
| Development at Experian, talks about "look-alike | | | | business and bring speedy and measurable returns. |
| modeling" as a strategy for prospect messaging that | | | | |