How to analyze your client portfolio Use of external information Internal Data
Posted: Sun Dec 15, 2024 6:00 am
When we want to draw conclusions about who buys from us, the most common thing is to start working with the company's internal information . First, we take a list of clients, sort them by purchase volume, and then we review the list. We look at the names, find some surprises in the first names, and then we take a look at the rest.
What is the result? There were some pleasant surprises in terms of new hires, and we also missed some important clients.
We know the company's top 10 customers very well, but we are unable to draw conclusions about the profile of our customer base . Does this process sound familiar to you? I am talking about general bulk sms south africa cases and for companies with more than 100 customers.Color barsThe human brain has difficulty structuring information and drawing conclusions from large amounts of data, especially if it is so dispersed.
We also tend to make the following mistake: we think that the best customers are only those who buy the most from us, but we tend to forget about customers who buy little, but have the potential to buy more, or customers who have been buying from us for many years.
The cost of acquiring a new customer is usually between 2 and 8 times the cost of retaining a customer. It is also true that if we do not acquire customers, we run the risk of disappearing. A company that does not acquire customers will have the same number of customers as today or fewer, but never more.
As customers disappear, so will the company. Obviously , what improves the results of the analysis is being able to analyze the contribution margin of each customer . Sometimes we are dazzled by the purchasing power, but a lot of income does not always mean a lot of profitability.
Therefore, aspects to improve :
Avoid drawing conclusions from just the top 10 customers
Think about how to evaluate customers by what they buy and what they might buy
Analyze customer seniority
Analyze customer profitability, not just revenue
External Data
To improve the aspects listed above, we often need to rely on an external company that can provide us with data and help us structure the information.
Nowadays, it is affordable for all companies to be able to enrich their customer database with external information and subsequently structure the information to obtain a snapshot of their customer portfolio.
If they are companies , we can add their sector of activity, employees, turnover, number of branches, etc.
If our clients are households , we can add information about the area where they live , such as socioeconomic level, educational level, age profile, second residence, type of vehicle, consumption of different products, housing, etc.
From this data, we can structure the information to generate customer profiles, analyze profitability by segment and quantify the potential market . I recommend it. It's worth it.
What is the result? There were some pleasant surprises in terms of new hires, and we also missed some important clients.
We know the company's top 10 customers very well, but we are unable to draw conclusions about the profile of our customer base . Does this process sound familiar to you? I am talking about general bulk sms south africa cases and for companies with more than 100 customers.Color barsThe human brain has difficulty structuring information and drawing conclusions from large amounts of data, especially if it is so dispersed.
We also tend to make the following mistake: we think that the best customers are only those who buy the most from us, but we tend to forget about customers who buy little, but have the potential to buy more, or customers who have been buying from us for many years.
The cost of acquiring a new customer is usually between 2 and 8 times the cost of retaining a customer. It is also true that if we do not acquire customers, we run the risk of disappearing. A company that does not acquire customers will have the same number of customers as today or fewer, but never more.
As customers disappear, so will the company. Obviously , what improves the results of the analysis is being able to analyze the contribution margin of each customer . Sometimes we are dazzled by the purchasing power, but a lot of income does not always mean a lot of profitability.
Therefore, aspects to improve :
Avoid drawing conclusions from just the top 10 customers
Think about how to evaluate customers by what they buy and what they might buy
Analyze customer seniority
Analyze customer profitability, not just revenue
External Data
To improve the aspects listed above, we often need to rely on an external company that can provide us with data and help us structure the information.
Nowadays, it is affordable for all companies to be able to enrich their customer database with external information and subsequently structure the information to obtain a snapshot of their customer portfolio.
If they are companies , we can add their sector of activity, employees, turnover, number of branches, etc.
If our clients are households , we can add information about the area where they live , such as socioeconomic level, educational level, age profile, second residence, type of vehicle, consumption of different products, housing, etc.
From this data, we can structure the information to generate customer profiles, analyze profitability by segment and quantify the potential market . I recommend it. It's worth it.