High-value customers are clients on whom the survival or profitability of a business depends, according to Chief Marketer Network. Without these customers, a business loses its competitive advantage and market share, resulting in decreased performance. In worse scenarios, loss of high-value customers could result in a bad reputation or the collapse of a business. Hence, these customers should receive highly personalized care and attention from business owners and employees.
Businesses should be aware of their high-value customers and implement strategies by which such clients are to be attracted and retained, according to Action Technologies Inc. Good customer care and retention policies, practices and processes are therefore quite vital in the drive to retain these customers and survive the present competitive environment. The necessity of these interventions is made apparent by the willingness of customers to switch from one provider to the other due to better prices and easier access to services. It is also important for a business to be aware of the reasons some customers have decided to spend large portions of their income on the organization's products.
However, lower-value customers should not be ignored. They are equally important, and efforts to make them high-value should not be spared. In many cases, second-tier clients are observed to have the same interests, needs and preferences as high-value or first-tier customers, according to Chief Marketer Network.