Most people in business realize that their businesses evolve and they often find their old customers do not fit their new business model. They find that these old customers take more time to service and therefore are less desirable from a profit standpoint. Even considering all the loyalty of the past these long-time customers are often slighted by expanding businesses, but why?
Well recently in a conversation with an Internet Entrepreneur he said he had an old customer, the best ever in fact. The customer still represented over 3.5% of his total volume. But the entrepreneur said this customer is over here, drawing a red dot on the far left hand margin of a legal pad and the rest of the customers 99% of them in fact are over here and then drawing another red dot near the right side margin to illustrate the point.
The Entrepreneur said that he had to design his business for the 99% and focus on them and sheetcan the most loyal customer of all. He explained that today he had spent hours burning time to help the one individual old time customer. Well I said consider that if the one customer is 3.5% percent of the business then it is not one customer but actually 3.5 customers and could become 4.5 customers very easily.
Indeed it is easy to look over these older loyal customers, yet if you consider that if you refined the business model that maybe you might be able to find 99 more of these types of customers and then you would have 4.5 times as much business. To often Internet Entrepreneurs forget this and rather than fulfilling a niche completely they are onto the next thing and lose those most loyal customers. We all know this to be a mistake because un-loyal customers are three times more likely to switch at a drop of the hat. Consider this in 2006.
Lance Winslow – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
Author: Lance Winslow
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