This is a world in which bell curves are the norm. Twenty percent of an average sales force usually produces eighty percent of the volume. Eighty percent of taxpayers wait until the last two weeks to file. Even just three of the apostles were considered to be in the "inner court." Well, it so happens that 20% of most customer bases do the majority of the most profitable sales activity. So, it behooves you to put the emphasis of your advertising and marketing efforts on them. This does not mean ignore the hump in the bell curve, but treat the "high rollers" special and with regularity. Methods of special treatment are also mentioned throughout this book. There are three proven measurements to keep aware of regarding your customer base. First, Recency. As described in "More Accountable Marketing," the older the last visit, the colder the attitude. Newer customer visits are more likely to re-visit or re-order, especially if it's a "special discount exclusively for our regular customers." Second, Frequency. If they do business with you on a regular basis, they should be on the "A-list." This obviously means that you have something that they want. Third, Gross Sales. The big spenders are also ones for the "A-list." Advertising and promotion to them is always more cost-effective than any other list. All of this does not mean to ignore the fat part of the bell curve in your promotions. At least they have done some business with you at some time, and unless you irritated them, it's still more cost-effective to promote to them than to first time customers. Look at your marketing as a mixture. Bring in some new ones (at least they replace the losses), draw more from occasional clients, and get fat off of the "A-list." |