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Pick better customers to sell to.
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Key takeaways
- 80% of customers will bankrupt your business and keep you poor forever.
- So, they would extract all their customer data from a business they were going to buy, then they would force rank every customer that business had ever sold since the beginning of time, looked at the acquisition channels that brought in the 20% that was the highest paying customers, and they would double down on that.
- And so, what they would do is say, "Okay, well, what if we had 100% of the customers being that 20%?" Without even having to increase the volume of sales, but only by picking better customers to sell to begin with.
Chapters
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Abschnitt 1 80% of customers will bankrupt your business and keep you poor forever.
Full transcript
Locally archived YouTube transcript with timecodes. Speakers are assigned heuristically and may be corrected editorially.
0:0080% of customers will bankrupt your business and keep you poor forever. So, here I was sitting in this conference where I was at the cool kids table because we had our software company Allan that just had crossed 10 million ARR. The host of the event gets up there and he's like, "Our next speaker is head of pricing and packaging at Vista, a $50 private equity fund." Oh, I am poor. So, he said the way that Vista approaches acquiring a new company starts with its customer base first. So, they would extract all their customer data from a business they were going to buy, then they would force rank every customer that business had ever sold since the beginning of time, looked at the acquisition channels that brought in the 20% that was the highest paying customers, and they would double down on that. And so, what they would do is say, "Okay, well, what if we had 100% of the customers being that 20%?" Without even having to increase the volume of sales, but only by picking better customers to sell to begin with.