Friday, July 13, 2012

Focus On Most Valuable Customers In A Challenging Economy

FocusFocus during this challenging economy by asking "What's A Most Valuable Customer Worth"?

MVCs, the core of your business, have a high lifetime value and unrealized potential. MVC traits:
  1. They award you most of their business through repeat high margin sales
  2. They buy during economic downturns
  3. They are easy to do business with and readily self serve themselves
  4. Because you are well positioned within their organization, they tell you what you need to do to win - no guesswork.
  5. They provide collaborative assistance in designing new products and services 
  6. Being in your customer portfolio enhances your stature because of their reputation
  7. They refer you to new potential MVCs
MVCDo you know who are your MVCs? Do you have enough of them?

Do you know who are your Most Growable Customers (MGCs) who can be developed into MVCs?

I believe that you should strive for MVCs + MGCs to comprise 80% of your customer base.

I also believe that your field sales reps should be managing only MVPs and MGCs. If they're investing time with second tier customers (STCs) or below zero customers (BZs), you have too many sales reps. Instead, your inside and online sales processes should manage STCs and your marketing process should nurture leads to sales ready status.