Start Month: Apr 2019 (1 years, 3 months)
Revenue Impact: +£186,323
Net Profit Impact: +£37,561
Cash Impact: +£68,983
This is a really interesting case study that demonstrates how much can be achieved by growing the value of your relationship with just one customer.
The business in this case study originally won a piece of project work with a new client. They delivered a great service. As the relationship developed, so more work was scoped and delivered on time, on budget and to specification. Over time the value of the relationship grew significantly, and has gone on to generate the bulk of the increases shown in the graphs. The extra income has allowed the business to hire a new member of staff and achieve a range of other milestones.
It’s important to raise a word of caution in situations like this. Putting too many eggs in one basket can be risky. One of our other clients tells a story (before they started working with us!) about how they lost virtually all of their income over night. Their contact person at a large customer left their job. When the replacement arrived they brought their own supplier.
There are two lessons to learn from this story. First, ask yourself what you could be doing to grow the value of your customer relationships. Second, ensure your income is sufficiently well diversified so that you’re not overly exposed to a single customer, industry, or market.
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