Most of my readers are hard-driving C-level executives, meticulous product/CRM/business managers, or astute business analysts. Essentially, you’re someone with a vested interest in your organization’s growth, and I’m glad you’re here! Today, I want to discuss an incredibly crucial aspect of growth – understanding your customer base.
Consider your customer base as a large, dense forest. Navigating this forest can be tricky if you don’t know where the pitfalls are, where the treasure troves lie, or which path leads to the sunny meadows of profitability.
It’s time for a self-check. Do you know your forest well enough?
How healthy is your customer base? Is it growing or shrinking? Are the customers satisfied or are they seeking greener pastures?
Do you know what drives your top 10% of customers, and do you realize what percentage of your revenues they generate? They’re like the mighty oaks that tower over the other trees, but they need special care and attention.
Have you identified customers in your base that are not profitable, the ones that drain resources without providing enough return? And how much time and resources are you spending on them? It’s important to remember that not every small shrub needs to be nurtured to become an oak.
Finally, are your growth efforts targeted toward the right customers? Is your growth plan sustainable? Your forest should be able to withstand storms and grow stronger over time.
If your answers to these questions are a bit hazy, it’s alright! The first step is asking the questions. And if you don’t like your answers, the next best step is to dive deeper and analyze your customer base. It’s about sifting through the foliage and discovering the unique patterns and rhythms of your forest. And trust me, a good dose of common sense can be your best compass!
So, get to know your customers. Once you understand them, you can nurture them, guide their growth, and enjoy the rewards of a healthy, vibrant, and profitable ecosystem.