How To Get More HVCs ( High-Value Clients )
Pop Quiz
Question : How much more did your web designer charge you for the high-value client you got from the website over the lower-value clients you ’ ve gotten in the past ? How much more did the post office charge you to send the sales letter that got the HVC versus the non-buyers and cheapskates ? How about Google PPC ? Facebook ?
The Answer : Not a penny more , but HVCs can be worth 2x , 5x , or 10x what most other regular clients are worth . If you know this , here ’ s a good follow-up question : What are you doing specifically to attract , close , and develop more HVCs ?
What Is An HVC ?
A high-value client is different for everyone , but in general , they represent far more PROFIT ( not revenue ) than your average client . They ’ re also easy to service where you can do your best work because their needs and your capabilities align . They appreciate what you do and don ’ t see what they spend with you as “ a LOT of money .” Typically , they are a growing company with constantly expanding needs , creating more opportunities for you . Their needs are frequent , not sporadic . They pay on time , comply with your advice , and refer .
1 %, 4 %, 15 %, 60 %, 20 %
I ’ m sure you ’ ve heard of the 80-20 Rule or Pareto Principle . It ’ s a natural law discovered in the late 1800s by the Italian economist Vilfredo Pareto , who was attempting to uncover why 80 % of the wealth ( which at the time was land ) was owned by 20 % of the people . Since his discovery of this natural law , it ’ s been studied and discovered to apply to all things in our lives from the mass of stars and the size of cities to the clothes you wear and the carpets in your house ( 20 % of the clothes in your closet get 80 % of the wear … same with your carpets ).
These numbers break down even more , which means that 1 % of your client base are your “ whales ,” 4 % your baby whales , and 15 % your top clients . From there , 60 % of your clients are “ average ” in spend , and the bottom 20 % need to be fired .
Therefore , it ’ s very likely 80 % of your PROFITS are coming from those top 20 % of your clients . You might already know this , but the more important questions are what are you doing about it ? What are you doing to attract more of the 20 %? To develop the clients you have to be HVCs ? What are you doing with the 20 % to continue to expand that relationship ? To get them to refer you to others like them ? To simply show them more appreciation ? In most cases , the answer is nothing . You have democratized support , effort , attention , and spend to ALL clients and ALL marketing , when it would be a heck of a lot smarter to figure out what ’ s common about the top 20 % and use that information to attract more like them versus more of “ everyone .”
Why It ’ s More Critical Than Ever To Get HVCs
Inflation and a tough labor market require a different , more strategic approach to expansion than “ more ” clients . Since your business growth , revenue , and profits are directly tied to a need to hire employees , and those employees are becoming harder to find and
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