How do you manage customers by value?
Not all customers are equal.
But all deserve an engagement plan that helps ensure their success.
We've had a few different versions of this 2x2 over the past couple of years, but we've finally settled on this.
It plots customers based on current value (e.g. ARR, MRR, advocacy) vs. unrealized potential value (future upsell/expansion).
Each quadrant has a different strategy:
📍 High current, high potential: Retain and pursue growth
📍 High current, low potential: Retain and build advocates
📍 Low current, high potential: Pursue growth opportunities
📍 Low current, low potential: Streamline resources to maintain
Once we know where each customer falls, we can decide what resources to assign to each account, e.g. CSM, Account Manager, Account Executive, Technical Account Manager, and so on..
The amount of revenue to retain
The amount of potential expansion
The type of expansion
Are all factors to consider.
Most of these quadrants are obvious. But the one that most people miss is High Growth - low current value, high potential.
How are you segmenting your customers to maximize the value you can provide your customers - and the value you receive in return?
