Take Your Customer Profitability Analysis to the Next Level (Template)

By: Guest BloggerThu, Apr 6, 2017 @ 09:00 AM

Our guest blogger today is Howard Cox, CPA, CMA, CIA. Launching his career with a Big Four firm in 1983, Howard established his own practice just four years later—and, in late 2001, merged his independent CPA firm into Somerset CPAs and Advisors' operations. Currently, Howard focuses on general Business Advisory, Mergers and Acquisitions and PPACA Compliance engagements, and also conducts informative presentations for clients, as well as outside events.

The quality of business performance is dependent on the quality of management decisions. The quality of management decisions is dependent on the quality of management information.

Strategy is about focus. Customers are a key element of effective strategies. Optimal allocation of finite resources towards appropriate customer focus can only come from customer knowledge. Therefore, having a deep analytical understanding of relative customer profitability is a critical prerequisite to annual or quarterly strategic thinking.

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Topics: Core customer

Supercharge Your Sales Engine with Core Customer & Brand Promise

By: Alan GehringerTue, Oct 4, 2016 @ 09:00 AM

How much time, money, and energy are you wasting trying to sell to the wrong customers? 

Determining who your core customer is and developing the right brand promise can really supercharge your sales engine.

We are gearing up for our second annual Breakthrough Conference in Charlotte in October. This year’s event promises to be even better than last. And last year was amazing, as so many of our attendees commented. We have several keynote sessions planned, from our own Patrick Thean and Cathy McCullough, one with Dr. Stephen Vogt from BioPlus, and one with Joseph Grenny, author of Crucial Conversations. Along with the keynotes, we have a great schedule of breakout sessions developed by our team and presented by our expert consultants.

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Topics: Core customer, Brand Promise, Breakthrough Conference

Don't Give Away the Farm: Get Paid for the Value You Provide

By: Alan GehringerSun, Jul 24, 2016 @ 12:00 PM

I came across this quote of a story that really resonated with me.

Legend has it that Pablo Picasso was sketching in a park when an audacious woman approached him.

“It’s you — Picasso, the great artist! Oh, you must sketch my portrait! I insist.”

Picasso agreed to sketch the woman. After studying her for a moment, he used a single pencil stroke to create her portrait. He handed her his work of art.

“It’s perfect!” she said. “You managed to capture my essence with one stroke, in one moment. Thank you! How much do I owe you?”

“Five thousand dollars,” Picasso replied.

“B-b-but, what?” the woman stammered. “How could you want so much money for this picture? It only took you a second to draw it!”

To which Picasso responded, “Madame, it took me my entire life.”

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Topics: Core customer

3 Steps to Identify Your Core Customer

By: Alan GehringerSun, Apr 17, 2016 @ 12:00 PM

Philip Kotler implores us to do a better job of understanding “who” our target customers are and then to deeply please them, rather than trying to please everyone. 

Every company should have a brand promise that it makes to its customers. The promise should differentiate you in your market and support the sales process by making it easier to close deals. The first step in developing your brand promise is to identify your core customer. The better job you do with this step, the more effective your brand promise is going to be.

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Topics: Core customer

Focus on Your Core: Checklist for Strategy Success

By: Jessica WishartSun, Nov 30, 2014 @ 12:00 PM

The elements of your core strategy (your Core Purpose, Core Values, and Core Customer) are foundational for your success.  If you don’t have this core firmly established and embedded in your organization, how can you expect to grow with purpose?  

Purposeful growth depends upon having these elements of your strategy come to life in your company rather than discussing them once in a strategy planning session only to put them on a shelf or display them on a wall somewhere, never to be thought about again.

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Topics: Core purpose, Core customer, Core values

The First Step to a Winning Brand Promise is Defining Your Core Customer (Video)

By: Jessica WishartWed, Oct 23, 2013 @ 09:30 AM

No matter what kind of business you are in, you rely on selling your product or service to a specific customer…a real person.  Even if you sell to businesses, there is a person at that business making the decision to buy from you or not.  Your customers are unique individuals; they are more than statistics, and the more you know about their lifestyle, personality, ambitions and concerns, the better you'll be able to anticipate their needs and be agile enough to grow with them. 

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Topics: Core customer, Brand Promise

What is Brand Promise and How Do I Know if Mine Needs Work?

By: Tiffany ChepulSun, Apr 14, 2013 @ 07:15 AM

This quarter, I've been focused on helping my clients document their Path of Progress for the next four quarters.  What parts of our One Page Plan need work?  Where do I start?  What's next?

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Topics: Strategic Planning, Core customer, Brand Promise

Annual Planning - Focus on Your Core Customer

By: Patrick TheanTue, Oct 2, 2012 @ 05:32 PM

Not all customers are created equal.  Some are more equal than others.  We refer to these as our Core Customers.  Core Customers are the customers that you cannot live without.  They typically appreciate your service or products more, and your team enjoys servicing them more.  And to top it off, often times they are your most profitable customers.  Truly a Win-Win relationship. Unfortunately, for most companies, these core customers only make up 30% of their customer base. I always think of these customers as my "WHO".  The customers that I pursue, defend, and develop products and services for.  Some companies will even show me how 80% of their revenues come from 20% to 25% of their customer base.  

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Topics: Annual Planning, Core customer

4 Questions to Test Your Brand Promise

By: Tiffany ChepulTue, Aug 14, 2012 @ 09:20 AM

So you and your team have spent hours defining your Core Customer, talking about their needs and a working Brand Promise has finally materialized.   You think you've identified HOW you sell your WHAT to your WHO. 

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Topics: Core customer, Brand Promise

Who Is Your Core Customer?

By: Tiffany ChepulFri, Mar 9, 2012 @ 06:02 AM
Knowing your Core Customer can help you sell, construct your Brand Promise, build a new business model and support many other areas of your strategic work and decision-making.
Who is your WHO?
  • Define your Core Customer as a person, not an industry or market segment.  Who are you selling to?  Is it the CEO or the Director of Marketing?  Keep it to about 20 words.
  • What are some characteristics of your Core Customer’s company?  How big are they? $10M in revenue with over 50 employees?
  • What are some your Core Customer’s personal characteristics?  Are they progressive thinkers?  Are they process oriented or numbers driven?
  • What are your Core Customer’s needs (not wants)?  What problem does your Core Customer have that you can solve?  Is there something your Core Customer needs that others won’t or can’t do?
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Topics: Core customer, Brand Promise