How to Identify Your Best Customers

It’s natural to assume your best customers are the ones you hear from the most and the ones who make the biggest orders.

But when you take a moment to think about it, sometimes the customers who seem to be the best are in fact the ones who cost you the most. Does that same customer make a lot of special requests? Nickel and dime you to drive down their price on each and every order? Always seem to have an incident that needs immediate attention and eats up your employees’ time to resolve?

Add it all up and you may very well be losing money on who you think is your best customer, while you ignore the opportunity to maximize relationships with the customers who really are your best.

If you’re like most people, chances are you don’t have a lot of time in your day to consider the matter.

How do you identify your best customers? By answering the following questions:

How recently did they buy from you?

If it was quite some time ago and they haven’t been in touch with you since, chances are they have moved on.

How frequently do they buy from you?

If they make one occasional big buy, but return infrequently, then they may not be worth targeting your marketing efforts to.

How much did they spend?

Sure, the order was big. But did how much did they talk the price down? As Will Rogers once said, “People that pay for things never complain. It’s the guy you give something to you can’t please.” See more on that in the next point…

Are they making returns?

Big orders are great, but if the product is coming back, whatever the reason, the order is not a success. And if the same customer keeps making returns…red flag.

Do they pay their bills on time?

If they can’t pay their bills according to your terms, you’re carrying that burden until they do pay it, regardless of how big their orders are.

So stop wasting time on customers who are costing you money and start focusing on the ones who bring you profit.

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