Get the best of the blog straight to your inbox...

Work 20% less, earn 100% more...

Blog-image

Do you know the true value of your ideal customers?

It might be more than you think - let me explain...

For this story we're going to use a simplified example of a business called "Ben Builds".

Ben Builds has 25 customers and each of them have an average annual value of £10,000 - generating £250,000 in revenue each year. Ben is pretty happy with what his business is achieving. 

(1)-Average-Customer

 

But Ben doesn't want to settle for "pretty happy"...

Are you hitting your revenue goals?  Work out what's holding you back in 10 minutes    Get your pipeline score  ( It's free )

He is eager to double his revenue over the next year, but he doesn't have the time or resources to double the number of customers he serves. He also doesn't want to grow too big too soon, otherwise he might lose the great reputation he's built.

So he gets curious and starts digging deeper into his customers' purchase history, here's what he finds:

  • His best 20% of customers are actually worth 2.5X as much as an average customer, generating £25,000 each. 
  • The lowest 60% are only worth half as much as an average customer, generating £5000 each.
  • The other 20% fall somewhere in the middle - averaging £10,000 each. 

(2)-Ideal-vs-Worst

After looking at what he has just found, he has light bulb moment💡

"I don't need to double my number of customers to double my revenue. I just need to swap my low value customers for high value customers."

If fact, Ben realises that he could actually serve fewer customers and still double his revenue! Just look at the example below.

If Ben serves 20 high value customers (5 fewer than before) he can double his annual revenue - without increasing his time or resources!

(3)-Ideal-Customer

 

Ben has doubled his revenue and now has 20% fewer clients to manage - Which means he can have Fridays off and enjoy spending (or saving) the extra £250,000 he earns each year. 

Or maybe he will invest that extra time to build his business, by having the time to work on it rather than in it.

Either way, he thinks that's a pretty good result for a day's (less) work...

Can you do the same as Ben and look at what each of your customers are worth? Hopefully you'll find something interesting just like Ben.

Are you hitting your revenue goals?  Work out what's holding you back in 10 minutes    Get your pipeline score  ( It's free )

Get the latest Customer Obsessed thinking sent straight to your inbox every Monday...