24th May 2007

Finding Your Crown-Jewel Customers


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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