Why Lead? 0079 - Stop Wasting Money, Focus on Your Most Profitable Customers ft Peter Fader
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Jan 2, 2025 In a riveting chat with Ben Owden, Dr. Peter Fader, a Wharton professor and co-founder of a predictive analytics firm, dives deep into customer centricity. He debunks the myth that all customers are equal and stresses the importance of focusing on high-value customers for sustainable growth. Peter reveals insights into measuring customer lifetime value without drowning in data and shares strategies for transforming customer acquisition. His perspectives on prioritizing quality over quantity can reshape any business approach.
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Transactional vs. Relational Customers
- Many companies mistakenly consider anyone they've transacted with as a "customer."
- True customer relationships are rarer, often involving ongoing engagement beyond a single purchase.
Prioritize CLV over Sentiment
- Quantify customer lifetime value (CLV), even if it feels impersonal.
- Leading with CLV can be more effective than overly romanticized customer relationships.
Customer Value Hierarchy
- Not all customers are equal, and not all deserve your best efforts.
- Focus on identifying and nurturing high-value customers for strategic advantage.
