Top Customers

What is a Top Customer?

A top customers list includes details of your key customers based on their contributions to your company’s revenue.

A top customers list includes information on your most important customers and typically includes the following:

• Customer Details: Name, location and industry
• Revenue Contribution: Historical sales made to the customer broken down by period
• Agreement Tenure: Start and end dates of their association or agreement with your company
• Products or Services Purchased: Types of products or services purchased by the company

Why is Top Customers important for business today?

A top customers list enables your company to:

• Assess the distribution of revenue across your top customers and the total contribution of top customers relative to the remaining
• Evaluate profit margins associated with each customer by assessing the associated costs and revenue contributions
• Plan retention and growth strategies based on agreement end dates
• Assess and understand purchase behavior and satisfaction levels of top customers
• Formulate strategies to pitch new offerings to your top customers and diversify your customer base
• Assign customer relationship manager for your customers to effectively engage and retain them
• Seek referrals from top customers

Why is Top Customers important for an event tomorrow?

A top customers list is important for an event tomorrow, as it helps:

• Assess your company’s dependence on a top customer by geography and industry
• Evaluate top customers to assess their reach and brand value
• Determine the value and share of top customers in your company’s growth
• Evaluate historical trends to analyze any volatility in top customers, and assess the reasons for any variation
• Leverage historical revenue contribution to forecast future earnings and create growth plans
• Evaluate your company’s risk related to loss of top customers

Pros of addressing Top Customers

• Helps engage effectively with your top customers and strengthen your relationship with them
• Monitors lifetime value of your customers by analyzing historical engagements
• Helps benchmark top customers of your company and their contributions to your revenue
• Increases retention of top customers by tracking them and formulating appropriate strategies
• Helps evaluate your company’s arrangements with top customers to assess upscale opportunities
• Streamlines marketing campaigns

Cons of not addressing this topic

• Increases risk of losing your top customers to competitors due to lack of customer management and retention
• Limits your company’s ability to offer new, or improved products, or services to top customers
• Enhances financial risk of your company by not tracking tenure of your top customers business
• Makes it difficult to measure the contribution and performance of your top customers
• Increases your company’s inability to reduce dependency on top customers.