In my WBDC Fast Trac Growth Venture course this past Saturday the discussion focused on what market segment brings in the most revenue. One student’s report carefully illustrated how eight customers brought in the bulk of their company’s revenues. Most people in business know the Pareto Principle, and here it was in action.
The question then is how does your business nurture those relationships? What do you do to keep the top 20% of your clientele happy, buying and telling their friends about you? We all brainstormed and discussed the pro’s and con’s of direct mail, ads, events and coupons. What’s so great about these sessions is that while one person’s case was being analyzed, I got to think about my own offerings and how to leverage the most successful part of my market.
Everyone attending on Saturday agreed that, although the people who pay to have access to you through lower-end items or events are valuable, it is critical to pay the most attention and time to the identified group who pay the most. Designing special events for that segment is effort and money well-spent. The positive energy and excitement around that marketing focus will filter through your business. It may activate some of the other clients to move up to the ranks of the higher end. In my case, attendees at my networking events may sign on for a Mastermind Group or as 1:1 clients. For the business that was being spotlighted, it meant individual customers spending more on their product lines.
For those of you who read this blog regularly, you know how often I bring winks from the Universe into my writing, especially in the form of song lyrics. I’ve been listening to the cast album of [title of show] recently, so a song from there kept coming into my mind relating to my best customers. It’s called Nine People’s Favorite Thing (9pft), and the chorus has these words:
I’d rather be nine people’s favorite thing
Than a hundred people’s ninth favorite thing.