Finding your most profitable customers
Profitable customers are hard to come by. For every customer that generates high profits, there are usually five others that end up being non-profitable for your organization to maintain.
Targeted marketing campaigns and multi-channel insights can have little impact, if you don’t recognize that not all your customers have equal value. Identifying that top tier will allow you to focus your marketing programmes on the customers who REALLY drive your company’s profitability, as well as identifying customers who may simply return so little as to be not worthwhile keeping.
But what is a ‘profitable’ customer and how do you identify them?
Estimating ‘profitability’ consists of calculating the two main cost areas associated with a customer – their acquisition cost and the ongoing cost of supporting them. Measuring customer profitability will give you an advantage in optimising your marketing investment allocation and make sure that you are spending on the areas that will give you the greatest ROI.
Learn more