Task Management: How to Identify a High-Cost Client
Posted: Mon Dec 23, 2024 9:27 am
Do you have a habit of firing clients? Although the term may seem absurd, it is essential to maintain good financial health within the company. For this reason, it is recommended to use task management to identify which clients may cause you a high cost .
Practice is necessary for the company to be aware and identify the resources that are being used to keep a customer active. In addition to the money invested, it is a fact that time is a fundamental factor in acquiring new users. So, why keep those who generate more costs than profit for the company?
After reading the article, you will know the best way to say “no” to the customer, but first, know when to make the decision!
Know when a customer is profitable
If you believe that any customer brings profits to your company, know that this thought can bring, in the long term, financial complications.
To understand the situation, we need to carry out a complete analysis, from the planning stage in the marketing area to the moment of receiving customer feedback.
By using metrics such as CAC (Customer Acquisition Cost) and LTV (Lifetime Value), we have a solid idea of how much we are spending to keep an active user in our customer portfolio.
Understand how to calculate the value of your customer
To know how much was spent to acquire a new customer, you need to pay attention to two steps:
Calculate the acquisition cost
Basically, Customer Acquisition Cost is the average amount whatsapp mexico a company must invest to acquire a new customer. To do this, it is necessary to define the entire investment made, from the sales area to the marketing strategy, such as:
salaries and commissions;
amount spent on transportation to visit the client;
phone calls to consumers;
software used to make a sale.
Therefore, we need to use the CAC formula to arrive at the amount invested in the strategy, discarding people who came through channels other than those mentioned above, such as a referral from another client, for example.
That said, follow the formula:
Sum of amounts invested in marketing and sales
CAC = —————————————————————————-
Number of new customers
Next, we need to know how much profit customers bring to your company.
Calculate your customer life cycle
Lifetime Value is the metric used to determine a customer's net profit in a business. The practice aims to measure how satisfied customers are, to the point that they will buy your products and services on a recurring basis. To do this, perform the following calculation:
LTV = average ticket value x average number of transactions per customer per year x average number of years of relationship
There is no exact value to define how good it is for the company, since, in each area of activity, the cost and profit strategy tends to change. In other words, the strategy used in the supermarket may differ from the revenue in a restaurant , for example. Just make sure that the CAC is lower than the LTV.
This occurs because the amount spent to acquire the user was less than the profit he made within the same period, making the investment profitable.
After analyzing the results, you will have an idea of whether or not it is worth keeping a person as a customer, to make management more efficient for your business.
Fire your own client
If you have decided that it is not worth keeping a client, we need to deal with another difficult decision: firing them. Although the term may seem inconsistent with the situation, this action is necessary in some cases, especially to maintain a stable and profitable business. But when should you make this decision?
Know when the exact moment is
As we said above, you can quickly make the decision if the account does not bring you benefits, that is, when the amount spent is greater than the profit obtained, but still, there are other factors that you should consider.
As salespeople, it is a fact that we need to make an effort to please our customers. The problem arises when the consumer takes advantage of the situation.
So, if he questions your service , demanding lower prices and ignoring your well-being, to the point that you have to disregard other possible good clients, don't think twice: fire him today.
Learn how to dismiss the user
Once you have made a decision, you need to take action. We understand how uncomfortable this situation can be. After all, it only takes one wrong word for someone to feel offended. However, there are ways to try to resolve the situation. To do this, say that you understand the consumer's situation and that you can recommend other companies for their assistance.
Another way to turn the user away is to charge a higher price than normal. Inform them that the price has been adjusted for a moment and that there are no alternatives.
In either situation, you need to be careful when delivering bad news, since no one likes to be dumped, right? Furthermore, if you treat them badly, they can easily tarnish your image through complaints, which can make it difficult to attract new customers.
Despite your efforts, there is no guarantee that the person will feel comfortable with the decision, after all, they may take it personally, to the point of feeling offended. If you have done your best, try to stay calm.
Practice is necessary for the company to be aware and identify the resources that are being used to keep a customer active. In addition to the money invested, it is a fact that time is a fundamental factor in acquiring new users. So, why keep those who generate more costs than profit for the company?
After reading the article, you will know the best way to say “no” to the customer, but first, know when to make the decision!
Know when a customer is profitable
If you believe that any customer brings profits to your company, know that this thought can bring, in the long term, financial complications.
To understand the situation, we need to carry out a complete analysis, from the planning stage in the marketing area to the moment of receiving customer feedback.
By using metrics such as CAC (Customer Acquisition Cost) and LTV (Lifetime Value), we have a solid idea of how much we are spending to keep an active user in our customer portfolio.
Understand how to calculate the value of your customer
To know how much was spent to acquire a new customer, you need to pay attention to two steps:
Calculate the acquisition cost
Basically, Customer Acquisition Cost is the average amount whatsapp mexico a company must invest to acquire a new customer. To do this, it is necessary to define the entire investment made, from the sales area to the marketing strategy, such as:
salaries and commissions;
amount spent on transportation to visit the client;
phone calls to consumers;
software used to make a sale.
Therefore, we need to use the CAC formula to arrive at the amount invested in the strategy, discarding people who came through channels other than those mentioned above, such as a referral from another client, for example.
That said, follow the formula:
Sum of amounts invested in marketing and sales
CAC = —————————————————————————-
Number of new customers
Next, we need to know how much profit customers bring to your company.
Calculate your customer life cycle
Lifetime Value is the metric used to determine a customer's net profit in a business. The practice aims to measure how satisfied customers are, to the point that they will buy your products and services on a recurring basis. To do this, perform the following calculation:
LTV = average ticket value x average number of transactions per customer per year x average number of years of relationship
There is no exact value to define how good it is for the company, since, in each area of activity, the cost and profit strategy tends to change. In other words, the strategy used in the supermarket may differ from the revenue in a restaurant , for example. Just make sure that the CAC is lower than the LTV.
This occurs because the amount spent to acquire the user was less than the profit he made within the same period, making the investment profitable.
After analyzing the results, you will have an idea of whether or not it is worth keeping a person as a customer, to make management more efficient for your business.
Fire your own client
If you have decided that it is not worth keeping a client, we need to deal with another difficult decision: firing them. Although the term may seem inconsistent with the situation, this action is necessary in some cases, especially to maintain a stable and profitable business. But when should you make this decision?
Know when the exact moment is
As we said above, you can quickly make the decision if the account does not bring you benefits, that is, when the amount spent is greater than the profit obtained, but still, there are other factors that you should consider.
As salespeople, it is a fact that we need to make an effort to please our customers. The problem arises when the consumer takes advantage of the situation.
So, if he questions your service , demanding lower prices and ignoring your well-being, to the point that you have to disregard other possible good clients, don't think twice: fire him today.
Learn how to dismiss the user
Once you have made a decision, you need to take action. We understand how uncomfortable this situation can be. After all, it only takes one wrong word for someone to feel offended. However, there are ways to try to resolve the situation. To do this, say that you understand the consumer's situation and that you can recommend other companies for their assistance.
Another way to turn the user away is to charge a higher price than normal. Inform them that the price has been adjusted for a moment and that there are no alternatives.
In either situation, you need to be careful when delivering bad news, since no one likes to be dumped, right? Furthermore, if you treat them badly, they can easily tarnish your image through complaints, which can make it difficult to attract new customers.
Despite your efforts, there is no guarantee that the person will feel comfortable with the decision, after all, they may take it personally, to the point of feeling offended. If you have done your best, try to stay calm.