Many businesses find themselves relying on their top two or three customers for the majority of their revenue. Whilst it will always be the case that some of your customers will generate more revenue than others, depending on just a few big fish customers is not the way to go. Here’s why…
1. The risk is too high
Imagine if you lost your top two or three clients in the same month. This might’ve sounded unlikely at the start of 2020, but following the pandemic, for many it has already become a painful reality. In fact, in September 2020, two-thirds of UK businesses were at risk of insolvency, according to official figures. So, what would you do in this situation? Even with some fantastic, sales-ready leads in the pipeline, it’s likely your business would be in pretty dire straits.
Now imagine instead, you had a wide selection of highly valuable clients in a variety of different industries, who were already generating serious results for your business. Even if you lost two or three of your prized customers, you would be much more likely to recover from the loss, and better positioned to target new prospects in the industries you’ve already built a presence in.
2. There's little room for innovation
Big-fish customers mean big-fish problems – and if there’s one thing we know about enterprise level businesses, it’s that they are slow to innovate. Why? Because often, there are simply too many decision-makers who need to sign off on a purchase before you can get the ball rolling.
Now, this is fine if you’re working with a variety of different clients, but if you’re spending the majority of your time and resources on just two or three enterprise businesses, you’re leaving little room for creativity, experimentation and innovation. For example, you may develop a new product or service that you’d like your big-fish customers to trial – but at an enterprise level, this could take months or even years to get off the ground. If instead, you had a wide pool of SME customers to choose from, you’d be better positioned to get quick and effective feedback on your new offering.
3. You're missing out on new opportunities
With all of your focus and resources tied up in just two or three big clients, you’re missing out on a vast variety of new revenue opportunities. Just consider how many businesses across the world could use your product or service, but simply don’t know about it yet. Whether your offering has undiscovered potential in Gibraltar, or a niche market in the tech sector, now is the time to find out.
So, how can you reach these untapped markets? Well, at Really B2B, we’ve pulled together our top tips to help you broaden your prospect base and optimise your B2B marketing strategy…
Broaden your horizons with Really B2B
Relying on your top two or three customers for the majority of your revenue is risky business. Fortunately, at Really B2B, we can help to decrease this risk by identifying new prospects for your organisation using our unrivalled expertise in prospect research & insight, and then delivering outstanding campaigns that encourage these prospects to buy with your business.
Want to find out how we can help you? Simply give us a call on 0845 519 8517 or email firstname.lastname@example.org today.