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

Small Personal Loans – Jacksonville, NC

Finding small personal loans in Jacksonville, NC, can be beneficial when you need a little extra money. Whether it’s for a planned or unexpected expense, a personal loan can help you cover the cost. Find a Small...

Find the Best Savings Account Rates at First Bank in North Carolina

Finding the best savings account rates in North Carolina can be beneficial for many reasons. Whether you want to save money in the case of an emergency or start a fund for your child’s education, having the right...

Your Community Bank – Pinehurst, NC

Part of being your community bank in Pinehurst means offering a variety of services that meet the needs of individual community members. Whether it is assisting an individual with opening a checking account, or helping...

Construction Loans 101: Adjustable Rates

If you’re considering building a home, one of the more pressing concerns is the rate you’ll receive for a construction loan. For residents of the Carolinas, First Bank* has convenient locations to stop by for a...

Use Convenient Mobile Banking Options in South Carolina

First Bank offers mobile banking for residents in South Carolina to easily access their accounts on their iPhone and Android device. Now no matter where you are, you can transfer funds, check your balance, or find your...

Creating a Competitive Employee Benefits Plan

Employee benefits plans are an important part of any business owner’s company structure. Part of attracting and retaining talented employees is offering them a competitive benefits package. Some benefits are required...

The Best Online Mortgage Calculator in Charlotte, NC

Are you in search of a new home? Perhaps if you are in the Charlotte area you have wondered if Plaza Midwood, Arbor Glen, or South End are the best locations to look in to. Or maybe you are searching for a home in the...

Checking and Savings Account in Apex, NC

If you live in Apex, NC, and you’re looking for a great bank to open a checking and savings account, your local First Bank—near the corner of E Williams St and S Hughes St—can help. We offer...

Loans in Salisbury, NC

Whether you’re planning a home improvement project or buying a used car, taking out a personal bank loan can be beneficial to help you finance your big purchase. The First Bank Salisbury, North Carolina location is...

Save Money with This Refinance Calculator for Home Mortgages

When mortgage interest rates are low, homeowners should compare their current mortgage terms with the option of refinancing. By locking in the right rate, homeowners can take advantage of significant savings. Curious to...