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Do You Know Who Your Top Customers Are?

How do you find out which clients have generated the most revenue with you? If you store customer data in your accounting system, you can run a report to generate the data you need.  In QuickBooks, the report is called the Income by Customer Summary Report.  In Xero, it’s called Income by Contact. If you do not store customer data in your accounting system, you may be able to generate a report from your billing system, shopping cart, or point-of-sale system.

The reports look like this: each row holds the customer name and the Income column holds total revenue by the customer. If your system allows you to sort the revenue field, do this in descending order. If not, you can export the data to Excel and sort it in Excel. 

Once you’ve sorted the data, the answer is right in front of you.  Your top customers based on revenue will show in order. These are the customers you may want to consider spending more time with. Schedule periodic lunches with them, give them a call on a regular basis, and send them a gift or thank you note once in a while.  The report helps you organize your connection points with your top clients so you don’t miss an opportunity or forget to reach out to an important customer. 

Run this report on a regular basis so that you’re focused on nurturing the most important relationships in your business. You can also look at trends to see if you’re losing revenue over time or gaining revenue with new clients. You can reach out to clients that are spending less with you to try to save the relationship before it’s too late.  And you can get to know new clients that are growing with you so that you can grab even more business. 

Make this report a regular activity in your business to stay close to what your customers are doing with you.

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