I didn’t come up with the term “Most Growable Customers”–Don Peppers and Martha Rogers did–but I’ve used it as a cornerstone of crafting customer growth strategies for nearly 15 years.
In concept, any good customer growth strategy has three basic components:
- Plans to retain your Most Valuable Customers (“MVC’s”)
- Actions to attract and engage your Most Valuable Prospects (“MVP’s”)
- Strategies to increase share of wallet with your Most Growable Customers (“MGC’s).
Most often, struggling brands fail to clearly define and track these segments, understand their unique needs and put into place differentiated, workable programs to move the dial with each.
But even if companies don’t use this exact framework they typically are pretty good at focusing on the big spenders, while simultaneously obsessing over winning new customers.
Unfortunately this often means they aren’t spending enough time on their MGC’s. And that’s usually a big miss.
Typically MGC’s represent great leverage. You already have a relationship with them, so your acquisition costs are behind you. With any luck you have a way to cost effectively reach them. Minimally you should have some basic data about their behavior–products they buy, channel of engagement, full-price or markdown customer–which provides clues as to possible tactics to try next.
Sure you must work hard to keep your Most Valuable Customers–so long as you don’t confuse sales volume with value–and clearly few businesses can thrive over the long-term without adding meaningful numbers of new customers.
But I’d be willing to bet that if you invested more resources against understanding low share of wallet customers and made it a priority to identify and implement opportunities to drive more frequency, cross-shop and/or up-sell, you’ll be happy you did.