The “Right” Customer
10 years ago Hutch Morzaria 1
“you can please most of the people some of the time and some of the people most of the time, but you can NEVER please all of the people all of the time!”
– is unfortunately way too accurate.
So if we take our example of the miracle product you might find that the following applies –
- Region 1 (Affluent and Developed Economies) – product priced at $100/unit
- Region 2 (Developing and Growing Economies) – product priced at $50/unit
- Region 3 (Growing and Restructuring Economies) – product priced at $10/unit
Region 1 will probably account for the highest percentage of your sales and also the lowest cost with regards to support as they have the infrastructure in place to utilize the product fully and also to understand what it can and cannot do.
Region 2 & 3 will together account for a significant portion of your revenue but will also have the largest volume of support issues as they do not have the understanding of the products limitations and while this is a “miracle” product unfortunately it cannot in itself do miracles!
From a real world perspective I previously had a job at a large Internet company that was experiencing severe growing pains (to put it mildly!) and as the Manager I was frequently on the short end of the stick. More often than not, during the course of an outage I would be speaking to businesses with 5-10 impacted users on a conference call and have to explain what we were doing to everyone in the company … by contrast I would have an hourly update call with the Senior Network Analyst at a business that was on a similar service but that had thousands of customers impacted!
It is always worth the effort to nurture your customers as the hardest part of growing any business is getting new customers in the door. However you do need to do some careful analysis and tracking to ensure that the revenue you are earning from your customers is not actually COSTING you more in the long run – and remember – if you do not have that miracle product, you can only imagine that your complaints are going to be higher!
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