Prioritizing Clients Based on Profitability
Do you know who your clients are, which are the ones who bring more profitability, otherwise how should you market them? It is so unfortunate that many entrepreneurs and salespeople accept many contrast or just deliver services and products to any client because they are just interested in rapid development and achieving some “funny” goals. Besides, there is no need of rushing to maximize utilization just because you have the right salespeople for your business. The best strategy is always to start by categorizing the profitable and non-profitable clients, then customize your plans in such a way you’ll be able to meet the needs of more clients and as a result gain a higher level of profit from your market.
I know this may sound a traditional plan, but trust me, it works well for every business. Many entrepreneurs and salespeople have tried it and have always used it. Basically, the first thing you need to understand about prioritizing clients based on profitability is to recognize unprofitable clients who have a very narrow profit margin. Customers are different, just how our fingers are never of the same height. Hence, identifying the unprofitable customers will help shift some resources to profitable clients in a resourceful way that will see you prioritize all you clients, but as you keep the profitable ones closer.
Customer prioritization banked on profitability can only be achieved if you indeed keep record of your sales. It is from this information that you’ll be able to identify every clients’ profit margins and in that vein make the right assumptions and have the profitable relationships closure.
This concept is not meant to push you abandon some clients because you never know about the future. Your today’s profitable clients may become unprofitable, and vice versa. Therefore you need the right approach that will guide you through the customer prioritization based on profitability concept.
And speaking of the right approach, Blitz is one of finest commission tracking software that will not only help you through customer prioritization, but also will introduce you to new strategies that will build your business in relation to your commission plan.