What the Financial Crisis Means for Small Businesses

What small businesses shouldn’t do during these tough economic times is to go after Opportunistic Customers, who see a company’s products or services as commodities. They don’t care who they buy from, and they’ll pull out their wallets only when the price is right. They’re the infamous 80 percent of customers who collectively contribute 20 percent (or less) of a company’s profits. Opportunistic customers are almost exclusively price driven. So when the economy rebounds they’ll still be looking for the cheapest price, and they’ll take their business to another company in a heartbeat. Small businesses need to concentrate on giving their Core Customers the best prices and service possible so they will be loyal now and in the future.

Robert Gordman of CO 4:20PM October 27, 2008