By Craig Fulton, ConnectWise
When you evaluate the health and success of your business, there are several KPIs to measure. Are you tracking your tech utilization? Are you evaluating your overhead costs? Are you leveraging automation as much as possible?
While these metrics are important ways to measure business success, there may be one area you overlook: your customers. Are you able to determine which of your customers deliver the most value to your business?
Here are a few ways you can determine who brings you the most value—and why that’s so important.
When evaluating your overall profitability, it’s not only important to know the monthly recurring revenue (MRR) you earn from your customers, but also which customers deliver the highest per-hour value. This is the effective rate per customer and is determined by calculating the total revenue you receive from each customer, divided by the hours your team spends delivering services for them.
For example, if your company receives $10,000 from XYZ Company and your technicians log 100 hours supporting them, the effective rate for XYZ Company is $100 per hour.