MPI members can divide clients and prospects into three groups. A-clients, while they may have greater needs, contribute the most to your profits. Next, B’s either have fewer needs or less ability to pay. They contribute less to your profits.

C-clients can make a big impact on your bottom line; “negative!” Treated the same as others, you lose money. Don’t necessarily get rid of your C-clients or prospects: consider lowering your costs of serving them by referral to newer associates or develop less costly systems to service them.

No one can afford to be all things to all people. Bloomingdale’s knows that even among its well-heeled customers, some are more valuable than others and reward “preferred shoppers” with Godiva chocolates, thank-you notes, and private shopping nights.

Macys assigns its salespeople to give shoppers different levels of service according to the items they buy. In jewelry and luggage, doting salespeople provide all the help they need. However, in others, such as hosiery, customers help themselves.

Many of the larger hotel chains including Hilton, Hyatt and Marriott offer different levels of service for different customer groups. The levels at Marriott for example, run from luxurious and full-service pampering at the Ritz-Carlton to few services or amenities at their Fairfield Inn’s. Each property is positioned to match services, quality and price to specific targeted customer groups.

Divide your service along these lines, better service for some customers; lower cost for others and the lower end prospects should be respectfully referred to other businesses unless you can develop a less expensive way to meet their needs and while retaining profit margins. By minimizing your time on the lower end you free yourself to lavish time on higher potential customers and prospects.

The leader in the mutual fund industry, Fidelity, is trying to cover every base from discount broker to private account management. Account management, where a representative is assigned to manage the same client every time, is the most expensive. In contrast Vanguard is focusing on hitting just one target better than anyone else: selling mutual funds directly to investors at low fees.

Instead of improving service for everyone, hold onto you A-clients by provider higher service levels for their group only. Can office staff or team members handle several prospects without your personal attention? Management guru Peter Drucker explains: “The key is to make sure people spend the most time where it will bring the best returns.”

Update what you do to meet the unique needs of each important customer. If your “regular availability” isn’t satisfactory, make an exception for your exceptional customers. This service is only for the clients, who mean the most to your bottom line.

Set goals to nurture growth among clients who have the potential for more sales. Know what prospects fit this profile, what products or services you can offer to fill an unexploited need, and what the payoff will be for both the customer and you.

Eventually growth will require a committed team. Define roles and accountability up front. Involve your team in creating plans. They know which customers use the most service time for the lowest profit, which sales strategies are working, and what needs are not being filled.

To reach your maximum profit potential, give the market what it wants: segment the market to target the right client groups with the right levels of service at the right cost.

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