customer value

How to target your most profitable customers

If a business wants to increase its revenue, then it’s vital that it targets its most profitable customers. It’s common knowledge that some customers simply spend more than others and are more likely to come spend again. So, how can you identify these individuals and adapt your sales strategy? 


Finding these value customers is a process of analysis. Take a look at your previous sales. You might think that those spending the most or coming back more often are key, but there are four categories you should group all of your customers into. Those include:

  • high sales and high profits – repeat customers that spend big
  • high sales and low profits – repeat customers that spend small
  • low sales and high profit – irregular customers who spend big
  • low sales and low profit – irregular customers who spend small 

Of course, this process takes an extensive amount of time and energy. If you have the resources and staff to do it, have them start immediately. If not, give the world’s first customer value management platform a try to save yourself a headache. 

High Sales and High Profits

These are your most profitable customers and the ones you should turn your attention to immediately. You can create advertisements, either through email or social media, that target them and help them return to buy more. 

You should also up-sell these customers, getting them to buy premium products that increase your profits. Cross-selling, offering complimentary products to their purchases, is also an excellent tactic. Finally, don’t forget to identify their needs and offer new products or services to address those needs.

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High Sales and Low Profits

While this group provides a steady stream of revenue, there are ways to help make them more profitable. The easiest thing you can do is adjust your pricing. They’re likely to continue to buy the same products as long as you don’t hike the price up too far at one time. Increasing your customer service to provide a better experience is also ideal for this group. 

Low Sales and High Profits

The irregular customers that either buy high-ticket items or buy a ton of products at once can also become more profitable. The trick is to get them back through doors more often. Increasing your customer service works here, as well, but you should also work to address this group’s needs.

What products are they buying? With that information, you can up-sell and cross-sell to this group. Periodic sales on their favorite items is also an excellent way to get them back in the door more often. The real trick here is to give them a reason to visit your business on a more regular basis. 

Low Sales and Low Profits

Out of all four categories, this is the group you don’t have to worry about. These customers are not valuable to your revenue. You can try to up-sell and cross-sell, but don’t hold your breath. Instead of wasting your energy here, work on attracting new customers with a high sales and high profits profile.