Customer Segmentation for Profitability

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Watch the video above to Separate your Customers into groups

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Lesson Summary:

It's important for the survival of your business to segment your customers into 4 groups - A/B/C/D. Nurture and build a strong relationship with your A and B customers, ditch the profit sucking C customers and bring back the lost D customers.

When you’ve got rid of your C customers, you’ll find more B customers will appear to take over the space that has been opened for them.

What you'll learn in this Lesson:

  • How to find your A and B profitable customers.
  • How to find your resources sucking C customers to remove them.
  • Which customers are giving you your expected GP%.


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Video Transcript

Formulated Worksheet

Homework Assignment

Case Study

Frequently Asked Questions

Why is GP so important?

You can have many sales in money terms but if you're not making enough profit, you'll get no commission or salary!

How can I approach my lost D customers?

If you messed up, say sorry and ask for another chance. There could be management changes that you don't know about. You could have the product you previously didn't have for them. There's always a reason to find to approach them.

How do I make non-profit customers profitable?

Increase your price to a profitable level. If they leave you, replace them with a new  A or B customer.

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Fran Piggott

Fran Piggott

How can I help you?
I look forward to answering

your questions.

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