Business readiness

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.

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