Move Beyond Market Share—Fire the Wrong Customers to Grow Profits
At a small neighborhood gym, the owner realized that a handful of clients were eating up a majority of staff time—frequent complaints about schedules, endless requests for special treatment, but rarely signing up for extra classes or recommending the gym. On the other hand, there was a steady group who attended regularly, responded to feedback surveys, and even brought friends. The owner ran the numbers: while the first group demanded attention, they contributed little to overall revenue or community vibe. The regulars, meanwhile, were quietly helping the business grow.
After some soul-searching, the owner made the tough call. They phased out special perks for the high-maintenance group and redirected time to create a referral program, running outcome-based fitness competitions for the regulars. Encouraged to provide further feedback, these core customers started feeling more invested. Participation surged, and the sense of community deepened; the gym’s reviews improved, and new member sign-ups increased noticeably.
Though it took courage, this shift aligns with what behavioral economists call "customer lifetime value optimization"—maximizing returns by deepening engagement with existing high-permission, high-response customers, rather than continually chasing new ones or keeping everyone happy. It’s a practical strategy rooted in data and empathy rather than chasing vanity metrics.
Open up your customer list and sort by who actually engages most—track not just money spent, but also attendance, replies, or loyalty behaviors. For those top supporters, double down: give them special offers, chances to contribute, and even ask for more details about what they want next. Let the worst-fit or draining customers go (or gently stop chasing them), and put your energy where it pays off. Watch your team’s morale (and your results) shift as you invest in those who want to stick around.
What You'll Achieve
Build a sense of focus and empowerment by nurturing mutually beneficial relationships, freeing up resources, and lifting morale. Expect stronger referrals, more predictable income, and a higher quality of day-to-day experience.
Identify and Invest in Your High-Permission Tribe
Segment your customers by engagement and value.
Review current customers and group them based on frequency of interaction, responsiveness, and purchases. Look for patterns in what makes someone loyal (lifetime value) versus difficult or high-maintenance.
Design ways to deepen relationships with your best segment.
For your top group, offer exclusive benefits, early access, or direct input into new services. Ask for more feedback, data, or permission to communicate regularly.
Reduce time and energy spent on low-value customers.
Stop investing in people who create negative value—those who rarely buy, complain often, or drain resources. Politely let them go, so you can focus energy on the right audience.
Reflection Questions
- Who are my highest-value, most loyal supporters—and am I investing enough in them?
- What fears (or habits) keep me holding onto low-value relationships?
- How might the business or group feel different if we focused only on genuine, engaged members?
Personalization Tips
- A youth sports coach decides to focus more on players who are motivated and eager to improve, offering them extra drills and leadership roles.
- A smartphone app developer releases beta features only to their most active, supportive users.
- A local bakery stops giving discounts to chronic complainers and instead runs loyalty programs for their regulars.
Permission Marketing: Turning Strangers into Friends and Friends into Customers (A Gift for Marketers)
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