How To Determine The Best Customers For Your Business

By Craig Fulton, ConnectWise

Not all customers are created equal. And as a managed service provider (MSP), it’s important to determine which of your customers are best for business. We’re here to walk you through identifying these customers, what they mean to your success, and how the ‘not-so-great’ customers can cost you in lost revenue.

What Kind of Customers Do You Have?

Your best customers are considered your A customers. This type brings in the highest margins, adopts your methodology, and stays within their agreement. Sounds nice, right? Then, we have our B customers. These type of customers are mediocre. You most likely don’t have any problems with them, but they’re not the best clients to have because they only bring in the expected margins and nothing more. Lastly, we have our C customers—the worst ones with a lot of problems and no margin benefit. For any C customer, it’s important to ask yourself what the opportunity cost is. What does losing one bad customer do to your ability to bring on better ones? You might be able to bring in more revenue and increase margins by dropping that C customer and only focusing on the A and B ones.