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Make Your Clients a Key Part of Your Business Development Strategy? by Jenny Stilwell

If they are, and they should be, then the first thing you need to do is a full analysis of your client base, so you understand how much of an asset it really is to your business. I have worked with some clients who have neglected their customer base to the point that, if their client base were a garden, most of the plants and trees would be dead!

Any business development strategy must give great consideration to the value of your client base, both now and in the future. The flip side of that is the value that you can offer your clients.

If you can answer these questions then you have obviously done the analysis and know where you need to focus to increase the value of your clients:

• How many inactive clients do you have as a percentage of your total client base?

• How many of your current clients represent growth opportunities?

• How many clients have declining value, as a percentage of your total client base?

• How many represent a constant stream of regular revenue?

• How many of your clients are in growth mode, in terms of their value to your business?

• Do you know your clients business development strategy?

• Where are the opportunities for you to provide more value and support to your clients, or to provide them with new products and services?

• Have you grouped your client base into tiers, with Tier 1 being the most valuable?

• What percentage of your client base is in Tiers 2 and 3, and could potentially become a Tier 1 client?

• Are your clients worth enough to you?

• Do you have the right clients?

• Do you have enough clients to be able to grow your business now, or do you really need to acquire new clients?

• What do the answers to these questions mean to you in terms of revenue?

This is a simple exercise, and an important one. Segment your own client base so you have the right information to then make some decisions around your business development strategy.

© 2007 BOSS Management Group Pty Ltd. All Rights Reserved.

Jenny Stilwell is the creator of BOSSMENTOR® Business, a FREE monthly e-zine for professional, lifestyle oriented business owners wanting to confidently increase the value of their business, ultimately spending less time in it. You’ll get proven strategies, tips and resources designed to help you achieve success. Get your FREE copy now at www.bossgroup.com.au