Everyone in business knows that pulling back in the midst of a recession won't help. Slashing your marketing budget and praying for the storm to pass will never boost sales. Shrewd marketers know there's always an opportunity no matter how difficult the situation.

There is another golden rule in marketing: ``Customers are the best and least expensive source of new or additional sales.'' So use this time-tested strategy to focus: Boost sales per customer; don't cut price; add value.

First, the ground rules: Customers are not all alike -- 80 percent of your sales (and profits) most likely come from 20 percent of your customers. People buy products or services for three reasons: to fulfill basic needs; to solve a specific problem; or satisfy a desire or ambition. Businesses, unlike individuals, buy products or services for three different reasons: to increase revenue; maintain the status quo; or decrease expenses.

Here's how to develop those two strategies within a common-sense three-step process.

Are your customers a business or individuals? Or both? They're two distinct markets. Don't define your market by simply saying air-conditioning, computer services, gourmet foods, or healthcare. It's more than that.

What do your customers buy from you? Say you're a computer service provider and work with both individuals and businesses. Do you help meet an individual's basic needs, solve a problem or satisfy a desire or ambition? Or with a business customer, do your services help increase the customer's revenue, maintain status quo or decrease their expenses? Examine in depth: You'll find unique answers specific to your own business.

Successful small businesses understand that only a limited number of people will regularly buy their product or service. So pull up a sales report by customer for the last year or two. As selection criteria, think actual sales volume and growth potential. Give customers their relative importance: A, B, C and D.

Say you've got 100 customers. Odds are you'll straight away be able to name one, two or three As; then you'll add about a dozen Bs. Together, A plus B may equal 80 percent of your annual sales. Separate the remaining customers into either C or D. Some in the C group have growth potential. Chances are you'll uncover some D customers who may be best served by your competition.

Become a specialist in your customers' needs by closely examining each A and B relationship for its key components. Each will be unique.

As you learn more about each customer, you will more likely be able to offer the right product, at the right time, at the right place, with the right price. By refining your service, customer by customer, you'll build a better, stronger business. You'll become something special for a specific group.

Jack G. Hardy is a consultant, author and seminar leader. He is active in SCORE-Counselors to America's Small Business, the Direct Marketing Association, Miami's Venezuelan-American Chamber of Commerce and other organizations.

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