May 19 2025 |
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.
ALSO LEARN ABOUT
- Top Suppliers
- Sales Strategy
- Marketing Plan
- Business Processes
- Project Planning Documentation
- Business KPI
