In order that your marketing efforts are as cost effective as possible the first step is to identify who you are targeting. If you target the wrong audience the leads you generate will not be quality leads.
Review your current customer list and identify who at the moment is your ideal customer. In your CRM – Customer Relationship Management software you will have the capability of classifying your current customers. You can set up a classification system as per below:
- Platinum – An ideal customer, a regular customer that offers good margins and a prompt payer
- Gold – A good customer but does not meet the Platinum criteria
- Silver – A customer that is not loyal and shops on price
In many businesses you will find that the top 20% of the customers will generate 80% of the profits. Therefor it is important to analyse current platinum customers and find out what characteristics they have in common.
Once you have identified the characteristics they have in common focus your marketing efforts to target prospects with matching characteristics. You should review your prospect lists in your CRM and mark Platinum quality prospects.