;   Medical Translation Insight: What is your customer worth? - ForeignExchange Translations

What is your customer worth?

Ask this question and then build your business around your answer.That's the question that the Wired2Lead blog posed. Knowing the answer to this question is important for any business.

The point is not to keep every customer, at any cost. Rather, you want to determine which customers are the best fit for your service offering and then focus your efforts on winning and keeping these customers. Given the loooooong sales cycles in the medical translation space, we use it to guide our marketing, sales, and customer service efforts.

Over the years, we have refined the definition of what constitutes an "ideal client" for ForeignExchange. We use this as a tool to determine which sales opportunities to pursue and which clients to invest in. Our clients have benefited from this, as have we.

In some instances, we were no longer an appropriate supplier for a particular client. Referring them to a translation company that represented a better fit was the right thing to do. For those clients that we have retained, we were able to serve them better, resulting in higher customer satisfaction and higher profit margins.

Every supplier in the translation supply chain will have a different definition of "ideal client" and "lifetime value of a client". The trick is ask "What is your customer worth?" and then build your business around your answer.


ForeignExchange Translations provides medical translation services to the world's leading pharmaceutical and medical device companies.

2 Comments:

  1. Karen Tkaczyk said...
    Nice post. I'm a big proponent of 'being a good fit' with clients. It's cost-effective for everyone. As a freelancer, I know that certain clients are pains in the neck. Those clients may be worth my time if they are paying me a great deal, but at, let's say, my standard rate, they are not profitable. Reasons could be micro-management, or time-consuming project management, or unresponsive communication.
    Those clients are dropped as new, more appealing clients come in. There is great value in good business etiquette.
    David said...
    Hi

    That's indeed an important aspect. As a business you need to make sure you satisfy your clients and ideally, all clients are key clients. If I were to look mostly at the revenue, it is said that only around 20% of the clients generate around 80% of the revenue. If these 20% of the clients are also the ones where you say you are a good fit, one definitely has to focus on these.

    Regards,
    David

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