How to Increase Your Profits by Cultivating Your ‘Top Ten Percent’

Written by Justin Hitt, Strategic Relations Consultant, http://www.justinhitt.com/


Not all customers have equal value to your organization; in fact, some customers are more profitable than others are. These profits come fromrepparttar cost of service and total purchasing volume, not just individual product profitability. To cultivate these profitable customers, you first must identify them in your customer portfolio.

Your ‘Top Ten Percent’ customers are atrepparttar 121148 top of your ranking for volume, frequency, and profits per dollar invested. Group your customers by profits generated for your company, organizing them by ‘Top Ten Percent’, those ‘Above Average’, and customers with ‘Below Average’ profit earnings. Utilize statistical information and remember customers purchase multiple products, so do not use products asrepparttar 121149 only measure of profitability. Try to develop a full picture of each customer’s contribution and expense to your organization, consider overhead costs as well as other expenses on a per customer basis. It is important to align your profitability measures with your corporate goals and always use measurable information – don’t just guess!

Once you have arranged your customers by their profitability to your organization and have grouped them inrepparttar 121150 three groups mentioned above – you will getrepparttar 121151 most out of this strategy by determinerepparttar 121152 specific demographic differences between categories. Each customer tier will have specific demographic, preferences, and product expectations unique to that group. This analysis helps you better understandrepparttar 121153 differences between your customers, which enables you to serve their needs. It may be necessary to append your historical sales information with customer demographics from third party data in order to get a clearer picture of who your customers are in each category. Ifrepparttar 121154 differences are not apparent, then revisit this segmentation process and refine your profit measures.

Effective Promotion with the Use of Cold Calls

Written by Rachel Goldstein


Article submitted by http://www.Allfreelancework.com

Cold calls tend to berepparttar least effective form of marketing for consultants. But, if implemented effectively "cold calls" can land you a gig, maybe even your first gig. The trick is to place yourself inrepparttar 121147 shoes ofrepparttar 121148 prospect onrepparttar 121149 other end ofrepparttar 121150 line. Anyone can pull it off with a little bit of strategy.

Before you can start dialing numbers, you will need to do a little research. What is your area of expertise? What businesses or individuals would benefit from your service? Try to think of every possible use of your service. Write down all of these possibilities. Once you have figured out who all of your clients could be, now you need to compile a list of:

1. Name 2. Company Name 3. Address 4. Phone Number

You should keep all of this gathered information in a database, Rolodex, or on index cards. (I recommend writing downrepparttar 121151 information on large index cards. When you find a prospective client, take their card with you and write down personal information onrepparttar 121152 back of this card. This way, next time you visitrepparttar 121153 client, you can ask him how his sick aunt is feeling.)

Some good resources for you to use in your search are:

1. Yellow Pages 2. Chamber of Commerce 3. Government - Department of Small Business Development 4. Trade Associations 5. Search Engines 6. Purchased Lists

There are not many people that enjoy cold calling, so I assume that you might be a little worried about this. Believe me, I hate cold calling as much as you. But if you are in need of a gig, I would give it a shot. With use of a script, and a lot of practice, cold calling will seem much less intimidating. Take a look atrepparttar 121154 following example:

SCRIPT

A: Hello, this is Joe Schmo from Joe Schmo Consulting Firm. Is this a good time to talk?

B: Yes.

A: With whom may I ask I am speaking?

B: Mike

A: I am an expert inrepparttar 121155 web design field. You might have seen some of my work: deezin.com, allfreelance.com, and artistdesignerjobs.com. I could design a site for your business atrepparttar 121156 lowest rate around. If you are interested, I could give you a free 1-hour consultation.

B: Well, we were thinking about putting up a website, just didn't know when. I'll take you up on your offer of a free consultation.

Cont'd on page 2 ==>
 
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