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How Can A Client Database Help You Identify Your High Value Clients

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The Internet has radically changed the process businesses operate business in the last decade. Shopping can now be done all hours day and night through the internet. You can now electronically order, deliver and consume products and services in an a snap . Many goods even reach a customer within hours of being ordered. As more and more people turn to online shopping, businesses need to translate the other elements that make up a positive buyer experience into the online channel. Utilising tools such as live chat, online phones or interactive voice response systems are no longer advanced, they are becoming the standards. Unfortunately, if you’re not using a client database to reach out to your clients online, you are undoubtedly lagging behind.

Competition is stiffer than ever these days. But the battle ground is no longer on the quality of the product alone. In fact, a few companies are now jumping at the opportunity to get ahead of the competition through customer service, while their competition crashes and burns. As a consequence, a more responsive customer service experience is what customers expect and demand. Delivering high-availability, high-quality customer service is however neither simple nor cheap.

So you must be strategic. Realistically, if you have more than 500 customers, you can’t expect to render the same or equal service to every single customer. Your instinct, as the business owner, will be to try to address all their demands in the fear that one missed step could cost you a valuable customer. But what you’ll find by taking this approach is that no matter how much effort, time and money you put into your business you can never keep everyone happy. You might wonder if it would be achievable at all to run a business that is both profitable and with a high level of customer service?

The answer is yes! But first you must realise that not all customers are created equal. You have probably heard about the Pareto Principle (or the 80/20 rule). This principle says that in the majority of businesses, 80% of your revenues comes from just 20% of your clients. So granted that your income come from such a small fraction of clients, don’t you think it is justified to provide a special level of service to them? Would it be worth spending more effort on this select group of customers instead? And granting that these clients are the very ones that keep your business thriving, is it not fitting that you give utmost care of them?

But just who are these people exactly? How do you identify these people of the 500+ clients that you have? This is why you should sort your contacts into high-value and low-value clients. Customers that bring in the most amount of sales into your company are your high-value clients. Sorting your clients by the amount they spend with you is one method to categorise them . Giving exceptional service or special treatment to your high-value customers is very important since it ensures client retention, thus, protecting your revenue.

Giving extra special treatment to these high-value customers can help safeguard your income, regardless of the economic situation. To groom these clients, where you would usually use email as a means of communication, this time make a personal call, or when you meet face to face, treat your client to a cup of coffee and sandwiches. These seemingly small touches will make a huge difference. Of course this doesn’t mean that service given to your low-value group will be poor. A client database system allows you to appropriately service both groups – effectively and efficiently, without making anyone seem less valuable. The bottom line is, your client database will be your best tool to help you sort your high-value from low-value clients, while ensuring that the service being rendered is fitting for each category.

Once you have sorted your customers, your client database will give you the ability to deliver the differing levels of service effectiviely so you can deliver the right amount of nudging just as you deem needed. For instance, using your client database, you can:

(a) Track and monitor the buying preferences of your high-value clients so that you can send newsletters or promos in relevance to their interests. This further facilitates future up-selling and cross-selling avenues.

(b) Use the tool to turn your 80% of lower-value clients automated tasks. Sending auto messages etc to keep them serviced without taking up too much valuable time at the same time, present them new products they might be interested in.

A client database software is a storehouse of your customers’ general info such as demographics, purchasing preferences and history, customer activity and interaction with your company, emails and so on. Armed with all these necessary data, it gives you the capability to better deliver the satisfaction every distinct buyer seeks to find because you have a mental picture on each and every customer’s personality. Having a database software will help you sufficiently equip your staff with customer-focused information to better serve your clients, especially that crucial 20% of high-value or high-profit clients.

“The art of communication is the language of leadership.” In this high-tech, fast-paced world, the value of storing down every bit of customer data is the essential connection between your team and your clients. Bottom line, a client database is communication in itself. Mastering the art of communication through your client database will help your company succeed. By using these and other strategies, you and your employees can reach new levels of leadership excellence.

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2 Responses

  1. You may find it easiest to map this out on a piece of paper first. Work out how your database is going to fit together. How will each category relate to the others? Nice resources ! :)

  2. Unfortunately, if you’re not making use of a client database to connect your clients online, you are undoubtedly lagging behind. mmmm . nice share !

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