Finding Hidden Top Customers You'd Never Expect
Dr. Jonathan Bein, President — Real Results Marketing
• WayPoint Analytics • market segmentation • segmentation • efficiency • customer segmentation • business analytics • Randy MacLean • Real Results Marketing • Dr. Jonathan Bein • market segmentation process • customer segmentation technology • segmentation methodology • customer segmentation best practices
Thursday, April 25, 2019—When you can group customers into segments with similar needs, business models, etc. then you can create solutions that will appeal to greater multitudes more efficiently. However, there has been very little correlation found between efficiency/cost to serve and demographic factors like size, zip code, market segment, etc.
The only truly reliable marker of efficiency and profitability is the likelihood that a customer will do business in an efficient manner in the future. In order to really measure efficiency, one must look at the details of buying patterns such as order volume and frequency. Using broader demographics is bound to be less accurate and an overall waste.
Gross profit generated per expense dollar is the true metric by which customers can be accurately grouped, and knowing this will enable you to reduce price by 5-8% in your best accounts without making a dent in your bottom line.
Knowing this and applying it effectively is the key to significant, permanently sustainable advantages in the market.
For more information about Dr. Jonathan Bein, visit: www.realresultsmarketing.com