How to focus on the right customer groups

3 minute read.

How to focus on the right customer groups

3 minute read.

How to develop a grid to understand which customer groups to prioritise

So when looking at which prospect to prioritise we often look at which ones will generate the most value in terms of sales revenue and or profit.

But rarely do we look at the difficulty to convert a prospect into a customer alongside this.Here are some factors to score that will help you prioritise which prospect/ customer groups to focus your efforts on.

We have been using this model for clients who have then subsequently had a complete rethink on which customer to prioritise. So let’s say you have 4 potential customer groups/ segments.

Develop a grid with the names of the 4 groups at the top of a piece of paper. Then down the left hand side put these headings. Size of opportunity/ market Revenue potential for your business from this market Cost to generate the sale – CPS Difficulty to service Cost to service Level of competition Profit levels

Then input the figures into the above and score them each out of 10. From this you will have a score for each customer group and some side by side data to help you make an informed decision to prioritise which prospect/ customer segments to target not just based on value but also based on difficulty to turn them into a customer.

We facilitate workshops for clients to map this out alongside including some other exercises to help them understand their customers better.

If you need a hand give us a shout! If not, happy hunting. Is your business 50 to 500 people where digital is critical to growth?

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