UPS has decided to reduce its shipments for Amazon by half, shifting its focus onto more lucrative clients. This strategic choice is aimed at increasing profit margins and ensuring the company's financial independence. Meanwhile, Amazon continues to build its own logistics network to improve delivery efficiency and control. This dynamic is influencing the logistics landscape, affecting both companies' operations and market shares.
Profitable Clients – How to Spot, Keep and Grow Your Best Customers
Every business wants the customers who bring in the most money while costing the least to serve. Those are the profitable clients you should focus on. The trick is not just to find them, but also to keep them happy and turn them into repeat buyers.
Spotting the High‑Value Clients
Start by looking at your sales data. Which accounts have the highest purchase frequency? Which orders are the biggest? Those numbers tell you who’s already paying top dollar. If you don’t have a fancy CRM, a simple spreadsheet will do – list each client, total spend, and how often they buy. The ones at the top of the list are your gold‑mine.
Next, check the cost side. Some clients may buy a lot but also demand a lot of support, custom work, or returns. Subtract those expenses from the revenue to see the real profit margin. A client who spends $10,000 a year but costs $9,500 in service isn’t as valuable as one who spends $5,000 and costs only $500.
Don’t forget to factor in future potential. A small startup that’s growing fast could become a major account in a year. Keep an eye on industry trends and look for clients in expanding markets – they often become the next big earners.
Keeping Profitable Clients Happy
Once you’ve identified your top earners, treat them like VIPs. Give them a dedicated account manager or a direct line of contact. Quick responses build trust and make it harder for them to look elsewhere.
Personalize your offers. Use the data you’ve collected to suggest products or services that match their buying habits. For example, if a client regularly orders sports merchandise, alert them first when a new jersey drops or when a limited‑edition item is about to sell out.
Reward loyalty with exclusive perks. A small discount on a big purchase, early‑access to new releases, or a free upgrade can turn a satisfied client into a brand advocate. Remember, word‑of‑mouth from a high‑spending customer can bring in new profitable clients without any ad spend.
Finally, ask for feedback. A quick survey after a sale shows you care and reveals hidden issues before they become reasons to leave. Fixing a small problem now can protect a huge revenue stream later.
Putting these steps into practice doesn’t require a massive budget – just a clear focus on the numbers that matter. Identify the high‑value accounts, reduce the costs of serving them, and give them experiences that keep them coming back. When you do, your profit margin climbs, and your business grows without chasing every new lead.
Ready to put this into action? Pull up your sales report, highlight the top five spenders, and start a conversation with each of them today. The sooner you treat them like the assets they are, the faster you’ll see the payoff.