Segmenting Yields More Profit

It’s important to segment your customers, clients and patients according to their value to your company. When you do this it allows you to outline a more effective marketing communication strategy where you can then spend more on those customers who are most profitable to you.

There are four basic levels of customers:

Best Customers: These are your highest value customers. They generate the majority of your profit. Retention of these customers is paramount. You must deliver integrated and strategic communication to them to keep them loyal.

Better Customers: These customers have some current value to your business but also have the potential to move into the Best Customers segment. Your focus should be on developing their inherent value by using a strategy that gets them to do more business with you.

Good Customers: These customers have value but probably not much potential to develop into a Better Customers or Best Customers. You should maintain ongoing communication to keep your business at the top of their mind.

Bad Customers: Yes. There is such a thing as Bad Customers. These are the ones that consume a majority of your time and effort but contribute the least to your profit. You need to consider getting rid of these customers so you can focus your time on the Good, Better and Best customers.

Author: Kathy Jiamboi

Owner of Creativedge Marketing, where growth-oriented dentists find dental practice marketing strategies and advice to take their practice to a new and higher level.

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