Group profit desert consumers together to improve targeting

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 10, 2021, 2:33 AM UTC

Brands can manage profit desert consumers by establishing a specialised sales and marketing team only dedicated to them.

Targeting a large number of niche profit desert customers, who are typically small and low-margin provide businesses crucial dormant profit opportunities. Because profit desert customers are many and often inexperienced, they increase the expense accounts of sales reps for activities like order taking, fulfilment, after-sales care, and returns. 

Profit desert customers account for 50-80% of customers and 40-60% of the company's costs and are assigned to low-revenue "C" accounts, which diverts reps away from more lucrative sales. Instead of dispersing profit desert consumers among sales reps' portfolios businesses should group them under a uniform management framework. The enterprise profit management strategy helps micro-segment profit desert and create a management plan for each section via the transaction-level profit data.

Companies can differentiate their business models by integrating extensive digital capabilities such as product search, selection, ordering, tracking, and more. Since each desert quartile is unique, businesses should develop different programs for the top, bottom, upper, and lower quartile desert consumers to improve targeting.

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