Beware the bandit

I often get asked about segmentation, particularly with B2B clients. While each database is different and the segmentation needs of each client are different, I usually get the discussion going by asking them if they can identify 3 types of customer: Allies, Bystanders, and Bandits.

Allies – these customers love us. They will have rated “totally satisfied” in your customer survey. But a word of warning – don’t ignore them (especially when something goes wrong) because they can easily change sides! Take note of what your Allies tell you is important – and make sure you keep doing it! Record specific likes/dislikes or needs for this group on your marketing database.
Your reps can routinely gather this information during sales calls. Put in place a “thank-you” reward program for Allies (as opposed to a volume based program). Even the small Ally (in volume terms) can be a valuable recommender of your products.

Bystanders – they are on our side for the moment (rated either “satisfied” or “neutral” in your customer survey), but they could go either way. For the Bystander – take a watching brief. Aim over time (and as resources permit) to at least get them to a “satisfied” state if they are neutral at the moment.

Bandits – these are the bad guys. They rated either “dissatisfied” or “highly dissatisfied” in your customer survey and will jump to your competition when it suits them. In the meantime they won’t hesitate to tell everyone they come in contact with that your company is no good! For the Bandit, firstly make sure you don’t have problems with your basic product or service; as this is the quickest way to ensure the Bandit will act against you. If you do have specific problems then fix them quickly. You don’t necessarily want to shoot all your Bandits, but you can divide them into sub-groups.
Those who, no matter what you do, are likely to cause you problems – “shoot” them. They will cause you more problems than they are worth in the long term.
Carl Sewell, the owner of an extremely profitable car dealership in Texas, says it doesn’t pay to deal with someone who doesn’t get on with you. Sewell always shoots the “bad guy” (read more about his fascinating story in Customers For Life; Doubleday Dell Publishing Inc; New York 1990).
Obviously, if there are other strategic reasons for keeping a client in the short term (eg. if they are your biggest client and you can’t survive without them) you will need to think carefully about timing.
Those who are only in the Bandit group because of a specific or long-standing problem – make it a priority to rectify the situation, because this is the group most likely to spread negative publicity about you.

I find the descriptive terms help people to visualise the type of customer we’re talking about. And are a useful place to start, when you are developing strategy.

Philip Dennett

Tags: crm, relationship marketing, revolutionary thinking, segmentation, strategy