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February 19, 2010

Fire Your Customers?

It's a lesson often taught but easily forgotten. For the benefit of direct response radio advertisers and others, here's a reminder...

Back in the days when Dell was a slightly more admired computer direct marketing company, there was a lot of talk about customer segmentation. Dell specifically and consistently re-segmented the market and targeted the customer segments that were the most profitable. Those were, by the way, the ones that cost less to support. Lower support costs, higher margins.

This post by Mr. Godin taps into some of that same thinking. While this topic is a bit tricky, the bottom line is that all customers are not equal. Some are a better fit for your business than others. We see over and over again that customers who call simply to get something free aren't as interested in a mutually beneficial long term relationship. Yet a free trial or free information can be the strongest expression of a company's confidence in its expertise, product or service. And confidence - if it's authentic - is good for sales.

Choose wisely, direct response marketers.

Posted by Jeff Small & Brett Astor at 12:14 PM | Permalink