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Pillar 8: Business Management – Customer Selection and Ranking


The series is from Chartered Accountant, consultant and author, Jeff Borschowa, from his book, 8 Pillars for Exponential Business Growth. The series is focused on how to find new and better ways to integrate innovation and technology to enhance the customer experience and improve efficiency in the accounting process.

Are all customers good customers? Generally, the answer depends on the industry you are in. If you have a homogeneous product or service that can be found anywhere, then you probably don’t have enough customer interaction to really worry about whether or not a client is a good fit for your business. However, if you offer a unique product or service and have an extended customer relationship, then it becomes imperative to be selective with the customers that you take on.

For example, if you are a custom home builder that takes a year to build a high-end house, you will likely be very interested in having a customer that you can work with.

There are two parts to client selection and ranking. You can first filter out unsuitable clients up front if you are clear as to who your ideal customer is. If, however, you have a lot of customers, then you need to look at your existing clients. When I work with my clients, we often look at their accounting records to determine how many customers it takes to make up twenty percent of their revenues. We compare that to how many customers bring in the remainder of their revenue. In most cases, the numbers are very revealing. You can often build your business just by focusing on your top customers.