20 / 20 Marketing

Today I coined a new phrase, "20 / 20 Marketing."

Like the cricket game whose name of I have "borrowed", it is fast and produces a result in a very short time, which seems to be what people are looking for in the fast moving economy.

Here is how it works. Start by printing off a list of your customers from your database. (If you haven't got one, you should have.) If you have a business where you don't collect details, perhaps like a cafe, think about who your typical customers are.

Now you have got a list to work with, think about who the top 20% of your customers are. This could be based on dollars spent, repeat purchase, ease to work with or whatever you determine. Now think about who would be in the bottom 20% of your customer base, the customers you would rather do without. This could be based on how little they spend, how difficult they are to work with or how infrequently they purchase. (This is where the 20/20 comes from).

Now that you have identified them, start thinking about what type of people they are. Are your top 20 single with disposable income, are they business owners, are they brand conscious? Think about why they would buy from you, what sort of magazines they would read and what would influence their buying decisions. Write down a list of their attributes and pretty soon you have a very clear picture of what a "good" customer looks like and what you need to do to gain more. Do the same with your bottom 20 customers and make a list of their attributes.

So now you know what a "good" and a "bad" customer looks like, how you can use it in your marketing? Well for starters, don't spend any time or money trying to advertise or promote your products to the bottom 20. If they are price shoppers, stop advertising using prices as a selling point, if they are slow payers, implement a system that rewards early payment. As for your top 20, if they are typically a small business owner, starting moving in those circles, join a Chamber of Commerce or search your local Yellow Pages for businesses.

You will be surprised how much information you find out about your customers doing this and how useful it can be. If you use it wisely you should be able to get rid of your bottom 20% and increase your top 20% by the same amount. That will mean that 40% of your customers are now great and you don't have any "bad" customers any more. Then if you do it again in 12 months time, the figures would look even better.

More "good" customers and less "bad" ones. That is a result that anyone would be happy with.