Quality of Revenue
Is every customer/client the same?
Is it possible that some customers are better to acquire than others? Maybe because they turn into recurring patrons or that they have a higher appreciation for the product/service you offer. It could be that some customers are simply a better fit for your offering thus making them more loyal and better advocates. Or to put it even more bluntly, maybe their $ is simply more profitable.
Conversely some customers are simply the opposite. They drain, take all they can and end up being an expense on time, energy and capital. Revenue is king - yes, but some kings turn into tyrants and dictators.
Your job is to know the difference.
Questions to consider:
How do you define a high quality customer to your business?
Are you currently segmenting and tracking your customers?
How do you disqualify low quality prospects and what if anything do you do with them once disqualified - down-sells/cross-sells/referrals/other?
My hope for you is that your revenue may be full of quality (and quantity of course)!
Power to the Entrepreneur!
Tim Martinez
“The Inside Man”
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