Identifying Best Customers

Viewpoint by Cindy Levine, Partner

Every company has its best customers, those who spend more, stay longer, build positive word of mouth, love the brand, and are more profitable. Understanding who these gems are is important for a multitude of reasons: Firstly, these customers are a leading indicator when things start to go wrong and can provide valuable insight to fix any problems. Secondly, these customers represent a majority of the customer equity and every frontline employee should be able to identify who these customers are and treat them appropriately to preserve and protect that equity. Thirdly, knowing what makes these customers tick can provide valuable insights into how your brand and value proposition needs to be modified to attract more of them. Finally, it is important to know not just who your best customers are, but also who your worst customers are so that resources and effort can be appropriately allocated. An organization that understands who its best customers are and can identify them will in the long run be better equipped to grow and adapt to changing customer needs.