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A better way to segment your customer base

Most people only consider whether customers are big or small, not their potential. Tq130924sdBut actually, a customer of potential has different needs than any other. And your company has the most to lose if your people are discounting those needs in favor of winning new customers.

Art & Science of Customer-centric Growth: Most Growable Customers, 2013-Sep-6, by Steven P. Dennis

In concept, any good customer growth strategy has three basic components:

  • Plans to retain your Most Valuable Customers (“MVC’s”)
  • Actions to attract and engage your Most Valuable Prospects (“MVP’s”)
  • Strategies to increase share of wallet with your Most Growable Customers (“MGC’s).

Most often, struggling brands fail to clearly define and track these segments, understand their unique needs and put into place differentiated, workable programs to move the dial with each.

But even if companies don’t use this exact framework they typically are pretty good at focusing on the big spenders, while simultaneously obsessing over winning new customers.

Unfortunately this often means they aren’t spending enough time on their MGC’s. And that’s usually a big miss.