The Incredible Financial Value of Ideal Customers

When you have the discipline to focus strategy, marketing, and sales on ideal customers,  it will have an extraordinary impact on your business.

Tech consulting firms often take deals from technology partners or attract customers who are “okay” but not significant.

These customers have the requisite tech stack, the need (install, implementation, upgrade, etc.), and the dollars to spend.

They are repetitive and have high success rates.

Your firm may be generating decent revenue from these “okay” customers.

You may have the processes, resources, and delivery down to a science and can generate the high margins you want from this business.

#Awesomesauce.

Let’s call this group your “Average Customer.”

You likely have another group within your firm (or would like to have): The “Ideal Customer.”

The Ideal Customer:

✅ Wants more of what you can provide: managed services, strategic guidance, inter-department or enterprise integration, and other high-value services and solutions.

✅ Is a satisfied, loyal customer with a solid relationship.

✅ Delivers a consistent and predictable pipeline.

✅ Can articulate the value your firm delivers to their business (business case, ROI analysis, etc.)

✅ Does not haggle on price or threaten to find replacement consultants.

✅ Is highly profitable.

✅ Helps you get more deals from accounts just like them.

Let’s reveal the incredible financial impact of ideal customers.

First, some general assumptions about your firm’s revenue.

1: Your firm has about 100 active accounts.

2: Total revenue is $10,000,000  (we’re making math easy here)

3: The average revenue per customer is $100,000.

Next, let’s use the 80/20 rule (the Pareto Principle) to make additional assumptions.

4: 80 of your accounts are Average, and 20 are Ideal.

5: 80% of your revenue ($8,000,000) comes from the 20 Ideal Customers.

6: 20% of your revenue ($2,000,000) comes from the 80 Average Customers.

Ideal customers generate, on average, $400,000.

Average customers generate, on average, $25,000.

That’s a 16x multiplier!

I know what you’re thinking.  “That doesn’t look like my business.”

I get it.

Your firm’s revenue situation may not fit neatly into the 80/20 model.  maybe it’s 70/30, or 66/33.

However, some likely ideal customers will provide a substantial percentage of your financial success.

You need to analyze these ideal customers based on multiple factors:

➡️ Revenue

➡️ Margins

➡️ Repeat business

➡️ Account growth

➡️ Marketing value

➡️ Referrals to others

Use this information in your marketing strategy to describe the bullseye of your target market.

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