Sales are important, conversation value is too

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Most companies are familiar with the Pareto principle: 20% of your customers generate 80% of your revenue. A smart company pampers those 20% of top customers. Mapping the financial value of customers and linking certain actions to it is the classic way to manage customers.

It is obvious to retain this important dimension. However, it might be interesting to add a second one, namely conversation value. In addition to a financial value, every customer has conversation potential. Someone may buy few products, but is still influential through his comments. A well-known businessman who flies once with an airline has a high conversation value. A leader of a youth movement who tries a new type of cornflakes has conversation value. Several studies show that the relationship between a high purchase frequency and a high recommendation intention does not always go together. People who buy little can have a fair amount of conversation value. The brother cell phone list group of frequent purchasers and recommenders is usually just as large as the group of infrequent purchasers and recommenders, both 29% of the total customer base.

The most important customers are those with financial and conversational value. So look for influential people among your loyal customers, but do the same with non-regular customers. In my new book, The Conversation Company, I encourage companies to look for underutilized conversational potential. After all, it is a shame that a group of customers is satisfied with your services but does not talk about it with others. By actively including the conversational value of customers, the potential is better utilized.