{"id":124916,"date":"2024-08-15T11:33:12","date_gmt":"2024-08-15T15:33:12","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=124916"},"modified":"2024-08-20T12:00:11","modified_gmt":"2024-08-20T16:00:11","slug":"most-valuable-customers","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/most-valuable-customers\/","title":{"rendered":"The 3 Metrics of the Most Valuable Customers"},"content":{"rendered":"\n<p>What makes a customer valuable? Do customers need to share a similar worldview as you?<\/p>\n\n\n\n<p>A quality-over-quantity mindset is essential for creating a great product, as well as focusing on the right customers. The ideal customer is one that shares your values, is financially trustworthy, and is willing to work with you.<\/p>\n\n\n\n<p>Here&#8217;s how you can define your most valuable customers.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-standards-of-valuable-customers\">The Standards of Valuable Customers<\/h2>\n\n\n\n<p>We\u2019ve consolidated Mike Michalowicz\u2019s definition of the most valuable customers into three metrics:<\/p>\n\n\n\n<p><strong>1. Similar worldview.<\/strong> Valuable customers get along with you well because they have a similar set of rules that they approach life (and business) with. Michalowicz calls these \u201cimmutable laws,\u201d as they\u2019re extremely influential and never change. It\u2019s easy and enjoyable to work with people who have similar worldviews, as you\u2019re more likely to want the same things and understand each other. In contrast, you\u2019re more likely to experience misunderstandings and conflict with people who don\u2019t share your rules. You may also feel pressured to change the way you operate\u2014to break your unchangeable rules\u2014to accommodate them. This then leads to internal conflict and unhappiness.<\/p>\n\n\n\n<p>For example, if part of <a href=\"https:\/\/www.shortform.com\/blog\/personal-worldview\/\">your worldview<\/a> is &#8220;Always <a href=\"https:\/\/www.shortform.com\/blog\/accepting-responsibility\/\">take responsibility<\/a> for your actions,\u201d you wouldn&#8217;t work well with people who are focused on protecting themselves from criticism. It would be frustrating to work with them, and they may take advantage of you by blaming you for <em>anything <\/em>that goes wrong, not just the things you\u2019re actually responsible for. You might then feel tempted to act defensively and refuse to take responsibility at all, contradicting your own worldview and causing internal conflict and unhappiness.<\/p>\n\n\n\n<p>(Shortform note: Can international companies prioritize similar worldviews? <a href=\"https:\/\/opentextbc.ca\/peersupport\/chapter\/worldview-and-culture\/\" target=\"_blank\" rel=\"noreferrer noopener\">Your culture heavily influences your worldview<\/a>, so people from different cultures often clash in this respect. Some business experts acknowledge that it\u2019s difficult to <a href=\"https:\/\/lslcpas.com\/6-proven-approaches-business-different-cultures\/\" target=\"_blank\" rel=\"noreferrer noopener\">work with<\/a> or <a href=\"https:\/\/www.entrepreneur.com\/growing-a-business\/business-selling-to-other-cultures\/83782\" target=\"_blank\" rel=\"noreferrer noopener\">serve people<\/a> from other cultures. However, their methods for overcoming this difficulty and building positive business relationships mainly address surface issues, like misunderstanding <a href=\"https:\/\/www.shortform.com\/blog\/nonverbal-cues\/\">nonverbal cues<\/a>, not the kind of immutable laws Michalowicz describes. This suggests that you can accommodate these surface issues without breaking your rules or facing internal conflict. Keep an open mind and research the other culture\u2019s norms so you know what to expect and can look past those surface issues.)<\/p>\n\n\n\n<p><strong>2. Financially trustworthy.<\/strong> Valuable customers use your services regularly, pay their bills on time, and are likely to generate future revenue.<\/p>\n\n\n\n<p>(Shortform note: One way you could increase customers\u2019 financial trustworthiness is by using a recurring payment model. In <a href=\"https:\/\/shortform.com\/app\/book\/the-100-startup\/1-page-summary\" target=\"_blank\" rel=\"noreferrer noopener\"><em>The $100 Startup<\/em><\/a><em>,<\/em> Chris Guillebeau says that <a href=\"https:\/\/shortform.com\/app\/book\/the-100-startup\/part-3-1#generate-more-income\" target=\"_blank\" rel=\"noreferrer noopener\">recurring payments are more reliable than single payments<\/a>, and they encourage your customers to continue using your service regularly for an extended period of time. In addition, customers could set up <a href=\"https:\/\/www.forbes.com\/advisor\/banking\/how-automatic-bill-payment-works\/\" target=\"_blank\" rel=\"noreferrer noopener\">automatic bill payments<\/a> with a recurring model, ensuring they pay their bills on time.)<\/p>\n\n\n\n<p><strong>3. Cooperative. <\/strong>Valuable customers maintain good communication and are willing to work with you to resolve any mistakes instead of holding a grudge. (Shortform note: Building rapport can be an important part of maintaining good communication. <a href=\"https:\/\/www.betterup.com\/blog\/how-to-build-rapport\" target=\"_blank\" rel=\"noreferrer noopener\">Rapport is a friendly, harmonious relationship with another person<\/a>, some business experts explain. When you have rapport with someone, they\u2019re more likely to trust that you\u2019re working in their best interests. This makes it easier to communicate\u2014and to work together to solve problems. Building rapport requires attentiveness, positivity, and coordination, so look for customers with these traits.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What makes a customer valuable? Do customers need to share a similar worldview as you? A quality-over-quantity mindset is essential for creating a great product, as well as focusing on the right customers. The ideal customer is one that shares your values, is financially trustworthy, and is willing to work with you. Here&#8217;s how you can define your most valuable customers.<\/p>\n","protected":false},"author":14,"featured_media":128743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,103],"tags":[1509],"class_list":["post-124916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-sales","tag-the-pumpkin-plan","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The 3 Metrics of the Most Valuable Customers - Shortform Books<\/title>\n<meta name=\"description\" content=\"Businesses depend on customers to make revenue. 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