Recently, we have been spending a lot of time trying to figure out who our “best” clients are. In episode 166 of Journey to $100 Million, listen in as Erik explains how and why we are categorizing our clients here at Array Digital. Believe it or not, Erik had been in business for 9 years, with Array Digital the past 2 years, and still did not know who our top clients were.
Erik had an idea about who the top 1 or 2 clients were based on revenue. But, after the top 2, he really did not know. Erik decided he had to work out a process for figuring this out. He went to Katya (who runs our books) and got a list of all our clients, and the amount of revenue they pay us on a monthly basis. After we sorted that, Erik had a rough understanding of who was at the top of the list.
Even though Erik now had this list of our top clients, he did not have any way to demark between our different types of clients. So, Erik looked at the data and saw a couple of patterns. Erik realized that some clients were spending a lot with us, a majority were spending in the middle range, and then there were some outliers at the bottom spending less than $100 a month. He then categorized these clients into different priorities.
There was priority 1,2,3, and 4. Priority 4 being the $100 or less clients. Those priority 4 clients were mainly hosting-only clients, meaning that all we do for that client is allow their website to live on our server. Once we had a grouping, we were clearly able to see who our top clients were.
Based on this grouping, Erik now knows who the top 5 or 6 clients are. We decided to treat these top priority clients like VIPs. What that meant was we would be able to give them some extra services. Every single one of our clients is still going to get the services they were promised, but VIPs are going to get just a little bit more. Be on the lookout for a future episode on how we plan on dealing with our hosting-only clients!
Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.
Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.