Managing customer classes

Clearly customers are the most important participants in any business. However, some customer relationships can turn into a time-consuming and profit-draining condition. Professional managers segregate customers into classes to be able to adjust service levels to each class, thus maximizing efficiency and profitability based on the relative value of each customer class. Here are four handy classes to consider:

- A customers: These produce the highest level of gross profit per transaction, and/or through volume. This class should receive the highest level of personal attention and service.

- B customers: These are slightly less profitable than the As, but produce a dependable volume and gross profit and, therefore, deserve high levels of attention.

- C customers: These are less frequent purchasers, and/or are "high maintenance," which could include paying slowly. These should be encouraged to reach the A or B level, but failing that, should not receive the premium levels of service, such as delivery on-demand.

- D customers: These should be introduced to self-service options, and along with some C customers, may be considered to actually be fired as customers.

A business' customer strategy should be to develop and maintain profitable relationships, not to perpetuate unprofitable ones.