We are starting a new week of work with another Marketing KPI Story – Customer’s potential.
KPI name: Customer’s potential
Definition: The estimated value that a partnership with a customer brings for your business by any channel possible and for all range of products and services.
Variation and related KPI’s:
Value of the customer (sales value and profit value)
Lifetime value of the customer
% of turnover with the customer versus total turnover of the company
The extended value of the customer – includes the business open with other customers because of this customer.
Focus and targets: usually this is a KPI important in the B2B sector. The value of a normal partnership and that of a strategic partnership must be known by management. The entire commercial package for customers is suggested to be setup according with its importance for your business.
!!! In the same time, a costumers value over 10% of your total turnover is considered a commercial risk. In some cases, even 5% is too much, and management must find a solution to increase other customers in order to minimize the influence of such a customer for the business.
Stay tuned for the next Marketing KPI Stories.