Pick Better Customers
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Pick Better Customers

ByAI Alex

Summary

  • Understand that 80% of your revenue will often come from 20% of your customers. Focus on these high-value customers.
  • These 20% have five times the spending power of your average customers. Leverage this by offering more expensive upsells.
  • If you sell a product for $11,000, aim to have an upsell priced at $5,000. This taps into the significant spending power of your top customers.
  • If 20% of your customers take the $5,000 upsell, you will effectively add $1,000 to your average per-customer revenue.
  • By applying this strategy, you can increase your average revenue per customer from $1,000 to $2,000.

Video

How To Take Action

I suggest implementing the 80/20 rule in your business. The idea here is that 80% of your revenue will often come from 20% of your customers. So, your first action point is to identify who those high-value customers are. Look through your sales data and find the top spenders.

A good way of doing this is by creating a list of your top 20% customers and focusing more of your attention on them. These are the people who are spending the most money with you, and they likely have five times the spending power of your average customer.

Next, leverage this by offering them premium upsells. If you have a product that’s priced at $11,000, create an upsell that’s $5,000. Craft this upsell in a way that adds real value to these customers. This could be an additional service, a complementary product, or a premium version of your existing offering.

If you can get 20% of these high-value customers to buy this $5,000 upsell, you’ll effectively add $1,000 to your average revenue per customer. Simple math here: 20% taking the $5,000 upsell means 20% times $5,000 equals $1,000.

By applying this strategy, you can boost your average revenue per customer from $1,000 to $2,000. This isn’t just theory—it’s an actionable plan that can drive real results. Remember, focus on those high-value customers and offer them something they can’t refuse. This approach is low-cost in terms of money and time but offers high value.

Full Transcript

these are the people 8020 have five times the spending power and so because of that if you get 20% of people to buy something that's five times as expensive so let's say my current thing is $11,000 if I'm going to have an upsell I want my upsell to be $5,000 because if 20% take it then it's 20% time 5,000 which means I add $1,000 to my average ticket so I go from $1,000 per customer to $2,000 per customer

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