Hi everyone 👋, I'm reaching out to gather insights on the most effective strategies for monitoring gross profit and profit margins for the products in my shop. Additionally, I've been considering the idea of identifying which of my customers yield the highest profit margins. For example, I am thinking about creating lookalike audiences on platforms like Facebook or Google Ads, using the profit margin data from my top customers.
My rationale is that by pinpointing these key customers, I could strategically allocate resources towards targeted paid campaigns, nurturing and potentially expanding this profitable segment. I'm interested in your thoughts on this approach. Is it a common practice to tailor marketing efforts based on profit margin contribution? If so, how might I best execute this? Also, I would love to know what tools everyone is using to track and report on profit margins.
If there's a more appropriate place for me to post these questions, please let me know. I appreciate everyone's advice. Thank you.