Classifying Customers and Identify Profit Centers for your Business

Written by Justin Hitt, Strategic Relations Consultant,

By grouping and mapping outrepparttar relationships you have with your customers, you can do more to finding profit centers in your business than anything else. This exercise will go a long way to demonstrate to you that not all customers are created equally; in fact, some are much more profitable than others are. We will touch on reasons why you should classify customers, how to describe your supply chain, ways to define customers, and finally how to map your distribution channels.

Classifying customers is very important to identifying profit centers in your business because classifications help target prospects for sales, determines how different customers respond to your marketing, and helps you anticipate their future needs. Through better targeting, you extend your reach, increase your closing ratios, and help target buying customers with your sales efforts. Customers do not all respondrepparttar 108223 same to marketing, but knowingrepparttar 108224 appropriate triggers and channels of distribution will help you customize your marketing for maximum results. As you group your customers, notice places where your product wears out or needs to be replaced, these areas reveal possible service options and influencers of new purchases.

In describing your supply chain, outline who is involved in supportingrepparttar 108225 customer, whether it is a distributor-reseller-customer relationship or a hybrid system, and ask several critical questions that will produce clarity in this process. Using simple diagrams outline each ofrepparttar 108226 individual organizations involved in providing services to your customers, will highlight opportunities for teamwork and improved communications. You may find a traditional supply chain supports your product, look at ways to grow or improverepparttar 108227 demand of your product through others. Create ideas from whatever type of supply chain you have by asking some critical questions; Who supportsrepparttar 108228 customer? What do they do? Why doesrepparttar 108229 customer go to them?

The Chaos Theory for the Webmaster and Internet Marketer

Written by Copyright © 2003, John Calder

*This is an independent examination ofrepparttar idiotic promotion practices of some marketers. Pepsi and Coke are not sponsors or co-sponsors of this examination. Pepsi is a registered trademark of Pepsi Corporation. Coke is a registered trademark of Coca Cola Corporation.


I receivedrepparttar 108222 following email from a direct email marketing company. This is notrepparttar 108223 first time I have seen someone use this technique in his or her direct promotion campaign. At first, I had deletedrepparttar 108224 message for beingrepparttar 108225 spam that it was... Then I realized what a good article this would make. So I dugrepparttar 108226 message out of my trash folder so that I could share it with you.

SUBJECT: Soda Taste Test

Dear Consumer,

Today, we're gathering opinions and preferences about popular soft drinks. Your feedback will help us determinerepparttar 108227 people's choice.



a. Yes b. No


I understand what they are trying to do. They are trying to generate reader participation within their marketing campaign. And they are trying to do so withinrepparttar 108228 strategy of using a question everyone generally has an opinion about.

A good friend of mine has often told me about his first job as a telemarketing sales representative. It was his words that prompted me to write my article today.

Eighteen years ago atrepparttar 108229 age of 19, my friend worked for a spell as a telemarketer. It was his first gig as a salesperson and it left a lasting impression with him.

It seems that his boss had readrepparttar 108230 same book that our direct email marketer had read. It seems both have askedrepparttar 108231 exact same question, although at different times and within different marketing mediums. Yet, I am sure thatrepparttar 108232 response will berepparttar 108233 same.


In 1984, it took less than a week for my friend to seerepparttar 108234 futility in this approach.

The goal ofrepparttar 108235 Pepsi vs. Coca-Cola question is to create an opportunity forrepparttar 108236 consumer to interact withrepparttar 108237 telemarketer orrepparttar 108238 direct marketer.

This technique was born inrepparttar 108239 sales teaching manuals that suggest thatrepparttar 108240 salesperson should stive to getrepparttar 108241 customer to answer three of four questions with a Yes before moving intorepparttar 108242 sales pitch.

Of course,repparttar 108243 basis ofrepparttar 108244 approach is legitimate in that you must create a dialog withrepparttar 108245 customer before you can ever hope to introducerepparttar 108246 product or close a sale.

When dialing a number at random,repparttar 108247 telemarketer would have to introduce himself, "Hello, my name is Bill and I represent" such-and-such charity. "Let me ask you a question. We are interested in knowing whether you prefer Pepsi or Coca-Cola?" Thenrepparttar 108248 telemarketer was to insert a deliberate pause and await an answer.

Often times,repparttar 108249 inserted silence would generate a hang-up. Other times, it would generate a very hesitant answer. And even ifrepparttar 108250 question was able to generaterepparttar 108251 appropriate level of interest inrepparttar 108252 conversation,repparttar 108253 consumer was often lost whenrepparttar 108254 next step was to takerepparttar 108255 consumer into a sales pitch totally unrelated torepparttar 108256 Pepsi vs. Coke equation. The change in direction was often rightly perceived as a deception onrepparttar 108257 part ofrepparttar 108258 telemarketer.


My friend knew that there had to be a better way.

He had read all ofrepparttar 108259 same books and had a desire to make more money while working this commission job. He was properly motivated to getrepparttar 108260 most out of what was available to him.

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