Strategic Insight: Why looking inwards is often the best way to grow
With finite time and resource you have 'X' number of opportunities to open new lines of business. Where 'X' is set to remain constant i.e. you are not planning to increase your sales or business development teams - that means that to experience growth we need to increase the value of those opportunities.
A quick historical analysis will show you that different industries hold different levels of business for you. When looking back you'll be able to work out the average customer value;
(spend over time/amount spent) / by number of customers in that sector = Average lifetime customer Value.
And once you have that you can paint an interesting picture. For example if you operate in three sectors and the average order customer value for each sector is £25,000, £53,000 and £35,000 then logic tells you to aim for the sector with the highest average as a new win here is likely to be worth thousands more than the other two - so why waste efforts chasing those?
There are, of course, other factors to consider before you go running off into the hills - but this simple process will enable you to priorities your efforts and make the most use of the finite resources you have.
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