In business, the quality of your customers is equally important as the quantity.
The best customers purchase frequently, have a high average order value (AOV), and are typically low-maintenance. On the other side of the spectrum are the high-maintenance customers who return orders, spread negative word-of-mouth, and are typically not worth the effort.
Overall, a sort of Pareto principle applies here: The top 20% of the customers drive 80% of the business. This Spyder case study is proof of that: 81% of Spyder’s revenue comes from 20% of customers.
Now, imagine 100% of your customers are like the top 20%. Mathematically, that’d mean 4x the business!
However, realistically, it’s impossible to have 100% quality customers.
With some effort, though, you can increase the number of high-value customers. And it starts with identifying your best customers.