3 Ways to Increase the Customer Profitability of Your Small Business or Franchise

Have you ever heard of the word customer profitability? Here is how Wikipedia dictionary defines it:

Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. ???????????????????????????????????????????????????????????????????????????????????????

This month I have put together 3 strategies to help you maximize your customer profitability.

First, review your website and ask yourself how hard are you making it for your customers to contact you? Remember, your customers have different preferences for reaching out to you.

Some prefer to phone you directly, others prefer to email you, and still others prefer some form of social media to connect with your business. Whichever way they prefer, make it easy to connect with you through various channels.

Make sure you have your phone number and email address links on each page of your website, preferably in the upper right hand corner. Don’t make your visitors hunt for your contact information by only being able to access you through your “contact us” page.

As Seth Godin, social media thought leader says, “your website visitors are like monkeys on crack.” In other words, if they don’t see a way to connect with you (the banana) when they want, they are gone.

The second strategy for you to consider is stop thinking small. In other words think about the services or products you provide and put together three basic packages:

Small

Medium

LARGE

Here is my point. Stop thinking like a business owner and start thinking like your clients. They have different needs and wants that come in various sizes, shapes and forms. Your job is to find out what they want, how they want it, and in which quantity, and make it available to them. Don’t wait for them to tell you what they want. Ask them.

Conduct focus groups or call them up one at a time and ask them this question, “What is one service or product you wish we provided that we do not provide at this time?” Get your cell phone recorder ready and record their responses. Then get your team together and figure what you can deliver, how to price it, and make it available ASAP.

The third strategy is to review or create a client recovery plan. What I mean by that is, do you have a way to deal with clients who experience a negative incident with your company and their disappointment with your product or service?

One way to fix this is to analyze the last five complaints you received from your clients. Addressing each complaint, one at a time, figure out what went wrong and what action you and your team can take to appease the client when it happens. What can you do to make it right? Next, figure out what needs to happen to prevent or minimize this incident from reoccurring in the future.

There you have it, three strategies to help you maximize your customer profitability.

Here is your homework. Pick one of the strategies you can implement and within the next 14 days, get your team together and do it.

Tom Borg Consulting, LLC    © All Rights Reserved.

 

 

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Tom Borg


My name is Tom Borg. I am a business expert who works with small and mid-size companies to effectively and profitably improve customer acquisition and retention. I help these businesses through his use of my consulting, speaking, training and coaching. To ask me a question or to hire me, please contact me at: (734) 404-5909 or email me at: tom@tomborg.com or visit my website at: www.tomborgconsulting.com

Tom Borg