Maximizing Customer Equity: Profiling Valuable Customers for Strategic Growth
Not all customers are good for a business. It's smart to keep valuable customers and let others go. To do this, companies should target specific customers based on their value and find similar ones through word of mouth. Keeping customers is important, but it should be profitable. Companies need to decide how much to spend on getting new customers versus keeping current ones. To maximize customer value, companies should focus on getting and keeping the right customers. Pricing and offering value are key in attracting and keeping customers.