Significantly increase your ROI by making a few changes to your marketing strategy. The best clients are “whales.”
Occasionally, you get a monster order out of nowhere that pushes your monthly profit through the roof. What we found is that the top 15 of customers were responsible for generating 65 percent of revenue; the remaining 85 percent generated 35 percent of revenue. The 80/20 rule is more like a rule of thumb.
Our research gave us a rough idea of what to expect before we knew what actual sales were. If you want to optimize your marketing to high-value customers, your first steps are to Compile a list of your customers. Classify those you deem as “high value.”
If you aren’t sure where to draw the line, then assign your top 20 percent of customers as “high value.” Identify what is different about your best customers compared to your lowest value customers. You don’t necessarily want to get rid of the bad customers.
But it might make sense to stop paying for traffic that brings low-value customers. That’s the 80/20 rule in action. Stop paying to bring these people to your business! Part of the sales analysis for my business was to identify the value of various sales funnels. Read more from business.com…
thumbnail courtesy of business.com