Focus on Your Core Customers

 
Ownership, alignment and accountability are the keys to understanding a successful Customer Review program.  Now that the foundation has been set for the program it is time to determine which customers should receive an Annual Customer Review.  In order to provide a quality product that delivers substance i.e. an Annual Customer Review, you will need to focus on a small segment of the greater customer population.  There are two key questions that you will need to answer:  1)  Which customers should be the focus for an Annual Customer Review?  2)  Who is the right audience for an Annual Customer Review?  For this blog I will provide an answer to question #1.

Which customers should be the focus for an Annual Customer Review?

The ability to segment your customers into strategic, core and transactional groups is important in targeting customers for an Annual Customer Review.  Let's look at a few of the attributes for each of these customer segments.

Strategic:  represents 5 - 10% of customers; product management, engineering and marketing are engaged; strong customer relationships

Core:  represents 15 - 30% of customers; revenue driven; forward looking; grow and penetrate with current offerings

Transactional:  represents 40 - 60% of customers; the largest customer segment; vendor relationship; backward looking; premise or call center customers

There are customer programs that are targeted for each segment, but for an Annual Customer Review your Core customers are the primary candidates.  The benefits you will receive with this program:
 
Increase retention and account growth rates
 
Gain higher and broader level contacts in your customer base

Have business level discovery meetings across the enterprise to understand their growth opportunities, initiatives and challenges

Establish knowledge, relationship and creditability to move away from a vendor relationship and ultimately become a "trusted advisor"
 
Your Core customers will benefit from the Annual Customer Review program because you:
 
Understand their business better

Can now help solve their business challenges

Can share observations and recommendations to improve their business

Can collaborate more effectively
 
These are the benefits of an Annual Customer Review program for your Core customers.  Now, who within the Core customers should be our audience for your Annual Customer Review?  I will answer that question in my next blog.
 

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