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The 8020 rule - that 80 percent of your sales come from the top 20 percent of your customers - applies to most businesses. Nurturing that precious 20 percent means focusing your marketing programs on the customers who drive your company's profitability. A laser-like focus on these high-profit buyers also prevents you from expending too much effort on lower profit customers. 


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4 tips to unearth your most profitable customers 


1) Calculate acquisition costs

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To conduct a simple analysis, first review the effort involved in closing a typical sale. Be sure to include expenses like a salesperson, direct mail Will Harris Jersey , Web site development or other advertising costs. Estimate the total cost of your outreach and divide it by the number of sales you close annually to do a "quick and dirty" analysis.



2) Calculate cost of customer service

It is important to track your customer service expenses to measure how profitable your current customers are. The equation is similar to the cost of sales analysis. Apply costs for service-related items such as order taking personnel, project manager salaries and delivery of your product or service to each customer. Estimate the average cost of servicing each customer by dividing by the number of customers you serviced during the year. If you need help determining key service expenses in your industry, ask your accountant for industry standards. Keep in mind that the cost of service numbers produced through these calculations are averages Jahlani Tavai Jersey , to be used for very rough evaluations of your customer base.

3) Create a high-potential profile

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