McDonald’s recently made a decision that, in retrospect, seems obvious: To stop chasing customers who rarely eat at McDonald’s and focus on making frequent customers visit more often.
What might that mean? Maybe they’ll stop trying to promote the health of their food. Or the freshness. And focus more on what the frequent diner wants more of. And then give it to them.
For your businesses, consider focusing on those customers that pay you higher margins. You could:
- Give them better service–like a 24/7 hotline or a dedicated account rep.
- Create more products based on what they particularly need, such premium products with extra services.
- Dedicate resources to go discover what other problems they have that you could solve.
Conversely, for those customer that earn low margins, consider lowering your investment in them. Or fire them–as some of my clients have done–after identifying them as non-customers. And then more time is available to make ideal customers even happier.
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