Enterprise customer types
Located in: Product
Red Seagulls, White Elephants, and Golden Geese
The red line is crucial as it measures the overall profitability of a customer, including services and management costs. Some customers may have higher Annual Recurring Revenue (ARR) than others, but if you spend so much time managing them that their actual profit margin is lower. Scaling based on their feedback risks the ability to maintain the white-glove service we provide them. It's important to consider: Do they love our product, or do they love our services and support?
Rank customers by recognized revenue not necessarily ARR. So a customer with you for longer moves to the left (hopefully).