In this episode
Growth feels like progress until the margin on each new customer quietly turns negative.
Busier and poorer at the same time is more common than you think. We work out the real margin on each customer group, including the time they take, and what to do about the ones that lose money.
What to measure
- Revenue per group
- It shows where your money comes from, which is often not where you think.
- Cost to serve per group
- This is the hidden part. Two customers paying the same can cost very different amounts to look after.
- Margin per group
- This is the number that tells you who to grow, who to reprice and who to let go.
The steps
- 01Split customers into groups
- 02Add up revenue and direct costs
- 03Estimate the time each group takes
- 04Decide what changes for the worst group
Your turn
Write down your ten biggest customers by revenue. Next to each, write how much of your team’s time they take: a little, normal or a lot. Any name with big revenue and a lot of time deserves a closer look.
On this episode
Kevin KasaeiHost
The playbook for this episode / No. 04
Find the customers who cost you money
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Free template
Customer profitability worksheet
Some customers lose you money. Here’s how to find them and what to do about it.
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