How to Differentiate Customers

How to Differentiate Customers Essay example
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How to Differentiate Customers Introduction Intelligent businesses need to evaluate the client base they are having and the kind of weight given to each and every customer. This calls for the differentiation of customers where businesses should know the net value of each and every one of them.


The tabular format below will give an insight into the various parameters associated with the client with emphasis on the weight associated with each and every category. Index Parameter Measures Weight Average Revenue Score Current spend and the projected spending 20 Revenue Change Score Changes in annual revenue 25 Current Relationship Tenure; Contract Commitment 15 Technology Entanglement System; Reporting mechanism; Email; Tele-Web 20 Share of Client Outsourcing 10 Partnership Communication and contact level; Referencing; Future value projection 10 Table 1: Customer Valuation Model [based on Exhibit 5.4] Average Revenue: Businesses need to evaluate the average revenue earned over a period of time. From the accounts perspective, the management needs to check what is the current spending of the customer and what would be the projected revenue. Based on it the average revenue against a customer needs to be calculated. If average revenue is good or is very good then definitely the business should spend more time on the customer. ...
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