Practical Sales Training™ > How To Keep Your Clients Happy > Client Segmentation

What is it?

Not all of your clients are created equal. By segmenting them you can ensure you provide the appropriate level of care and attention.

Why does it work?

It works because it ensures you understand which of your clients are bigger spenders or need more attention which allows you to anticipate certain situations and make better decisions about how and where you place your focus. Every business has an uneven split of revenue generating clients (80/20 principle) and by segmenting them, you know which are which. It also means you don’t waste time going the extra mile for those clients who are simply uninterested.

How can you use it?

Look at your list of current, past and ongoing clients and then decide, based on factors of how much they spend, how much time they need from you and other factors, you can highlight the clients you want more of and those which are the best use of your time, energy and focus.

Hypothetical Example:

A consultancy firm has 50 active clients, but when they analyze their revenue, they find that 10 clients generate 70% of their income, while the other 40 are smaller accounts that require just as much time and attention.

By segmenting clients into A, B, and C tiers, they:

Offer priority support and quarterly strategy calls for A-tier clients (high spenders).
Give B-tier clients standard service with bi-annual reviews.
Move C-tier clients to a self-service portal, freeing up time and resources for higher-value work.

As a result, the firm increases retention with its best clients while still providing value to smaller clients – but without over-investing time where it doesn’t pay off.

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