Here is a powerful exercise I go through with my clients.
The purpose of this exercise is to take an honest look at your customer base and identify your customers with the highest growth potential. Once they are identified, you know exactly who to focus your communication on and who to really target with the techniques in this book.
Take a look at the diagram in Figure 27.1, which represents your entire customer base.
Let's work through this together now, from right to left.
Think about your biggest customers. These are the people who spend the most money with you. Write down how many of these customers you work with above the triangle and the combined revenue they account for below the triangle.
Moving to the center of your customer model: How many customers comprise your mid-size customers by volume? This is your next largest grouping of customers in terms of the amount of revenue they generate for you. Write down their quantity on top of the model and the total revenue they account for below.
Now for your smallest customers: How many little guys do you have? And what percentage of your revenue do they generate?
Finally, at the left of the model are your prospects. Approximately how many prospects do you have?
If you don't know the exact numbers, ...