Many businesses think they know who their best customers are, but you may be surprised with what you find when you actually analyze your customer base.
The definition of “best” depends on your business objectives. You can define “best” in many different ways. Here are a few ways to start evaluating a customer:
Lifetime Value: Calculate the total dollar amount of a customer’s purchases over the years.
Tenure with Company: Look at how long customers have been buying from you.
Products Purchased: Your best customers might be those that purchase your highest-value products or services.
Profit Generated: This is similar to lifetime value, but looks at total profit from each of your customers as opposed to total sales generated.
Your best customers might be those that purchase your highest-value products or services.
It’s important to analyze your customer base and understand who your best customers are. To help with prospecting needs, try this solution.