I knew it! There’s gold in them thar hills, or diamonds actually. One of our new clients took the trouble to survey their customers (some 6000) with a view to identifying where they could improve to make themselves a more attractive proposition. Nothing unusual about that and no real surprises, although they now have the ability to rapidly put the fires out – through what we call ‘action management’ (I’ll talk about that in a future blog) but in essence this gives them the means to track and follow up any customers issues that need to be resolved quickly. That by itself marks a significant improvement.
But what is of particular interest to me and which I brought up in my previous blog ”who is covering your tail?”, is that some 75% of their customers don’t spend very much with them. What they didn’t know until now was the answer to the MD’s question – ”where are the diamonds amongst these customers?”
A very smart lady in the marketing department had included a rather cheeky question; ”what proportion of your XYZ purchases do you spend with us?” Surprisingly the vast majority of customers didn’t mind telling them.
As a result this clever lady produced a graph showing revenue in descending order – from biggest spend with them down to least, which of course they got from their financial system. But then she superimposed potential revenue, now they had a rough approximation of customers total spend.
What this showed were some hidden peaks amongst their ‘long-tail’ customers. These are the ones the company will now focus some attention on. These are the hidden diamonds the MD is so interested in.
No one would have given these customers a second thought before.