Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

How to Find Your Best Customers


As a business owner, you value each of your clients. After all, they enable you to create jobs and pay your bills. However, when it comes to actual business value, the fact of the matter is that roughly 80% of your sales likely come from only 20% of your customers. 

How can you learn more about the most profitable 20%? What characteristics do they share? How can you find more customers like them? A little bit of research can lead to a more efficient and profitable business.

Look at the Numbers

Without diving into the data, you may assume that the customers that produce the highest revenue make up your 20%.

In some cases this may be true, but it can be extremely misleading. Some customers may purchase large quantities of low-margin products or services. Others may require a lot more support or “hand holding” (and therefore labor) than others. Even though the revenue may be high, profit margins might not be.

Recency, frequency, and monetary value (RFM) analysis can help you determine your most profitable customers. By looking at the RFM value of purchases, you can get a clearer picture of who your best customers really are.

The Intangibles

Sometimes the hard numbers just don’t tell the full story. This is especially true with small businesses.

If you have clients that are friendly, loyal, easy to work with, and see the value in the products or services you provide, this can make them extremely valuable to you.

These types of customers don’t take a lot of time to support and won’t call you with fire drills every time something doesn’t go perfectly. Customers like these are also the ones that will evangelize your brand by word of mouth or on social media. While their value is less quantifiable, they are important to your business.

Show Your Best Customers That You Appreciate Them

Once you know who your best customers are, work on keeping them happy.

Handle any account issues promptly and thoroughly. Reach out to them personally to get feedback and keep lines of communication open. Send nice holiday gifts to let them know that you care.

Show your customers that you appreciate and value their business.

Seek Out More “Best” Customers

Use the information you’ve learned about your most profitable customers to look for patterns.

Create personas for your ideal customers. What products or services will they purchase from you? What industry are they in? Where are they located? How much time will they take to support?

Once you understand the best types of customers for your business, focus your marketing budget on attracting more of these types of customers.

Begin Weeding Out “Bad” Customers

It can be difficult to turn down business, but some clients are just better for the health of your business than others. If your company is in a position to do so, only accept new business that falls within the profiles you’ve created for profitable customers.

With your new ideal customer in mind, the final step is to start letting go of some of the customers that are not profitable. For some it may be as simple as not renewing a contract. For others, you may need to cut ties in order to free up resources to serve better customers.

Trending Topics

First Bank Card

With a First Bank card, you can feel confident that you are obtaining a bank card that is secure, convenient, and incentivizing. Are you one of the 194 million people who already have a debit card? Get the most out of your...

Read These Articles on Personal Financing

Knowing your finances is the first step to properly managing them and to ensuring you are in good financial standing. But how do you get started? Reading personal financing articles can be a huge help when it comes to...

Best Savings Account Rates – Wilmington, NC

From the historic mile-long Riverwalk to the miles of pristine beaches, Wilmington, NC, has many things to offer. You may be planning to attend college, buy a house, or even retire in Wilmington, but don’t have a...

First Bank, Lillington, NC, High Interest Savings Accounts: Earn More

Growing your money can be difficult if you do not have a great understanding of the stock market or keep up with current trends. An alternative way to use your money to make money is to put it in a high-interest savings...

Small Business Loan Rates in North Carolina

For competitive small business loan rates* in North Carolina, stop by your local First Bank branch to compare loans with flexible terms and highly competitive rates. We make borrowing money for your business easy and...

Rental Property Mortgage Rates – Florence, SC

Owning a rental property is a popular way to build some equity, qualify for tax benefits and earn some easy cash.* In Florence, SC, competitive rental property mortgage rates can be found at our First Bank locations on...

Best Business Checking Account – Lillington, NC

If you are a business owner, you know how important proper finance management is to running a successful business. Separating your business bank account from your personal bank account can ensure accurate bookkeeping. If...

Learn How Much You Should Be Saving Each Year

Wondering how much you should be saving each year? Many specialists believe in the 50/20/30 budget: 50% is spent on necessary expenses (e.g. credit card bills, rent), 20% of your income is put into...

Wilmington Bank

Wilmington, North Carolina, has a lot to offer, and that includes the town’s financial institutions. The very best qualities of Wilmington’s banks are evident in the five First Bank locations found on Oleander...

3 Major Factors of a Small Business Credit Card Comparison

Conducting a small business credit card comparison can be a useful tool when looking for resources that can help your company. But there are many credit card options available to entrepreneurs, which can make it difficult...