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Small business accountant in Melbourne: know who to please moreWhy are some customers treated better than others? It is because it is not ‘profitable’ to treat all customers equally as the amount of profit we generate from them are different. So how should we go about whom we should focus on pleasing more? Read on to find out more! Create an excel document by listing your customers and the amount of revenue they spent on you on a yearly basis. This will give you a good indicator of the customer’s importance when you rank by sales. Next, you might want to group your customers into different segments. For instance, group 1 spends $0-$6k per annum, group 2 spends $7k to $12k per annum, group 3 spends $13k-$16k per annum and so on. With these groups, you can start developing or adjusting business and marketing strategies in response to the value of the customers to your small business. For instance, instead of sending everyone a Christmas hamper, you can just send to the larger accounts and maybe just a bottle of wine to the smaller accounts. Have you heard of the second-degree price discrimination strategy? It means charging customers different price per unit in regards to the quantity that they purchase. Charge the smaller accounts slightly more so as to encourage them to spend more for discounts. Try to investigate what makes the larger accounts spend more than the smaller ones. Also, what are the distinctive characteristics of your top spending customers and think of ways to acquire more customers like them to grow your business. Be a smart small business owner by adjusting your business and marketing strategies to retain customers and yet maximise profits. If you are looking for someone to help, contact mas soon! Based in Sydney and Melbourne, we are a group of professional accountants who are passionate in taking off the accounting burden off our clients. |