Rainmaking Secrets

On Tuesday 29 May, I was interviewed on TV ONE’s Breakfast show to commentate on the NZ Reader’s Digest annual trust survey.

You can view the clip here:
People we trust — and don’t

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When is comes to segmenting customers by profits and sales, I always start with a four tier segmentation model called DROP Analysis.

DROP is an acronym that stands for Diamonds, Rubies, Opals and Pearls

• The Diamond tier
  (the top 1%) contains your super profitable clients
• The Ruby tier
  (the next 4%) contain your highly profitable customers
• The Opal tier
  (the next 15%) are reasonably profitable
• The Pear tier (the bottom 80%) contains the marginal or
  unprofitable customers

Your DROs (the top 20%) are your crown-jewels. Finding and growing your crown-jewel customers is
the key to accelerated profitable growth.

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British marketing professor Peter Doyle argues segmentation is the key to marketing.

I agree.

His reasoning is compelling.

Different groups of customers have different needs. Therefore, to satisfy customers you have to offer different solutions to different customers.

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