#customer value

A high-value customer drives the bulk of business value. Vilfredo Pareto's 80/20 principle shows that the top 20 percent of buyers typically generate 80 percent of revenue, referrals and advocacy. Retaining these accounts through expectation-setting and proactive engagement costs 5 to 7 times less than acquiring new ones.

Customer value is the perceived gap between benefits received and total cost. Guy Kawasaki argues that providing enough value earns the right to grow your business. The Customer Value equation, Benefits minus Cost, can be influenced through better processes, audience segmentation, and focused relationship building.