All businesses need to identify, satisfy, delight and retain customers. But all customers are not equally valuable. While all entrepreneurs and leaders will agree on this, they find it difficult to identify which ones need more pampering than the others. To avoid risk, they shower equal love on all customers. But this ‘spray and pray’ approach has not really been valuable to the company.
Prof Peter Fader came up with a metric called ‘Customer Lifetime Value’ (CLV) to help solve this problem. Now he has teamed up with a few others to offer a tool that will help companies implement this. It is called ‘Zodiac’ (not the men’s apparel brand).
I read their interview in the Knowledge@Wharton – Link: http://knowledge.wharton.upenn.edu/article/160811b_kwradio_fader-mariychin-mp3-zodiac
Please read, even if you are a small business. It may help you find your most valuable customers. You will be surprised when you identify this list. ‘Valuable Customers’ not only buy a lot of your products but also remain verbal supporters of your product and ambassadors of your brand. So, listen to the interview and dig through your customer lists. There may be a few diamonds waiting to be discovered. They can help you grow!