3 ways of identifying profitable customers in CRM

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Let’s learn how to identify profitable customers in CRM…




Friends, I know some of you have businesses that you run? How is it fairing? Whatever you are doing, can you say that you really know the total number of customers that you have?

 




If your answer is “NO”, I think you really have a lot of work to do. If my mother who happens to be trader can identify her customers and come up with a package for them.

 

profitable customers
It will be quite unfortunate for someone that has a well-organized business to be living with the assumption that he or she does not need to keep a record of customers and what they want.
 
You should be able to group your customers based on some certain characteristics that I will be talking about in this article. Follow me as we look at some of this concept together.
 
One thing you should know is that scoring is the tripod stand on which all other concepts such as customer segmentation, profiling and modelling are standing. If it is that important, how do we now define customer scoring? What is scoring all about?
 
 
Customer scoring is the process of rating your customers based on certain predefined criteria which will now help you to group them into different categories.
 
 
The process of scoring your customers will help you to know how far you can go in your bid to retain those customers.
 
It will not make any sense to spend $80 to retain a customer that has a lifetime value of $120. You have to score your customers in order to know where they actually belong to.
 
 
It will help you to know those customers that are less profitable and come up with a package to move them up the ladder.
 
There are three parameters that organizations normally use when scoring their customers. I will briefly talk about these so that you can be conversant with them.
 
recency
You score your customers based on how recent they patronized your products or services. A customer that recharged N100.00 (One hundred naira) recharge card every day cannot be compared to the one that recharged once in a week only to receive data bundle to surf the internet. The more recent, the better.
 
frequency
I have almost talked about this in the example I gave earlier. How frequent your customer patronizes your product or service will also determine where they fall into on the ladder.
 
Customers that patronized you frequently are more profitable than those that come in once in a while.




 
Monetary behaviour
At times, this is been referred to as Wallet Share. It is the amount that customers are willing to spend on your products or services. The more customers are willing to spend on your products or services, the more preference you give to them.
 
This in a way helps you to identify those customers that are responsible for the continued survival of your organization.

Action Point

YOU CAN ALSO READ  4 ways that CRM Data warehouse can increase customers experience

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