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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