There are no ‘high-value’ customers

Like Alan Mitchell, I too think I will scream if I hear another mention of a company’s decision to concentrate resources on their most valuable customers (MW March 7). But not for the same reasons. It is not a matter of working out how to calculate who your most valuable customers are – businesses will quite rightly tackle this problem in different ways. However, the problem with the notion of favouring your most valuable customers is that it still remains the case that few companies have established the data basis on which to identify their profitable customers.

Organisations are still peppered with islands of customer information, and databases are all too infrequently refreshed. Assumptions about which pieces of customer information are commercially significant are seldom tested and this aim of gaining a single view of the customer remains far from being a reality.

Until customer databases are more successfully managed, companies will not have an accurate picture of any customer’s profitability. To attempt to identify your most valuable customers under these circumstances is to run the risk of directing your budget away from current and future high value consumers.

Mike Wass

General manager

The Database Group

Bristol

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here