Automation. Elimination. Value. Differentiation. Psychology.    PHILOSOPHY Maximising margins is central to maximising the lifetime value of each customer. Investing in attracting and converting an enquiry into a sale makes good sense to maximise the return from that sale by maximising margins. Unfortunately, Australian businesses have become increasingly gun-shy when it comes to maximising […]

  Automation. Elimination. Value. Differentiation. Psychology.    PHILOSOPHY Maximising margins is central to maximising the lifetime value of each customer. Investing in attracting and converting an enquiry into a sale makes good sense to maximise the return from that sale by maximising margins. Unfortunately, Australian businesses have become increasingly gun-shy when it comes to maximising margins – placing a higher priority on volume. The customer-centric philosophy for maximising margins might be summarised as follows: While giving due consideration to both short and long-term consequences, it makes no sense not to apply whatever science is available to maximise margins. The obsession with low prices, and the reliance on intuition to set prices, so common in Australian business, are both counter-productive and ill-informed. While consumers are price sensitive, they are less price obsessed than most businesspeople and will often pay more than businesspeople think. A customer-centric marketing approach can be used to…