Great military strategists have won wars and changed history by knowing where to attack and how to concentrate forces in military campaigns. Staffing companies can learn some lessons from these generals.

By segmenting your clients and focusing your efforts in the right ways, you can migrate your business to higher margins and at the same time dramatically improve client loyalty.

Here are a few fundamental lessons on segmentation from top Client Relationship Management (CRM) gurus:

1. Good service does not retain clients. That’s right – if you provide rock solid good service to a client, statistically, you have a little better than a 50% chance of retaining them as a client. To get that number up to 90%, you have to provide excellent, over the top service or extraordinary value to a client.
2. The average staffing firm does not have the resources to deliver extraordinary value to every client. If you try to give every client excellence, all of your clients will end up with “good service” at best–and that means you have done nothing to lock in your most valuable accounts.
3. To drive margins, focus more resources on your best clients. Segment your client base with business rules that direct your greatest strength towards those clients that offer your organization the greatest opportunity for revenue and profitability. Develop internal contracts of service that clearly map out service standards for target accounts and standards for regular business. (Your service contracts and business process should not dip below good service).
4. Clearly define a profile for target accounts. Your target profile should define a client that aligns with your company’s vision and values and can demonstrate the buying and profit potential you seek.

So how can your firm divide and conquer?
If you are interested in this topic, please contact us for an AST case study showing how a staffing company eradicated client churn and picked up a percentage point on their gross margin. Simply call 800-929-3711 or email dave@astusa.com, and we would be happy to share this information with you.