145. How knowing your clients' numbers directly impacts your profitability
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A client recently asked me to downgrade or potentially pause our engagement.
They were nervous about the future of their business as we continue experiencing COVID impacts and wanted to conserve cash/play defence.
I suggested we have a call to discuss the financials and make a decision about what's best.
When we dug into the numbers in our KPI spreadsheet, it showed that not only were they excellent, they should be spending even more and getting MORE clients for as long as the acquisition costs stayed steady, which is safer than trying to conserve capital.
We explored the business case together of either downgrading or pausing our engagement, and it became obvious based on their current financial situation and future goals that we should keep working together.
After all, they were acquiring customers and paying back their acquisition costs in their first month, meaning every month after was profitable—including my fees.
The client wasn't close to these numbers (something they know they need to fix), so it was an eye-opening experience for them. They decided to keep at my full rate and scope for the indefinite future.
Give this episode a listen for a longer conversation on proving value and knowing your clients' numbers. Your own business depends on it.
A client recently asked me to downgrade or potentially pause our engagement.
They were nervous about the future of their business as we continue experiencing COVID impacts and wanted to conserve cash/play defence.
I suggested we have a call to discuss the financials and make a decision about what's best.
When we dug into the numbers in our KPI spreadsheet, it showed that not only were they excellent, they should be spending even more and getting MORE clients for as long as the acquisition costs stayed steady, which is safer than trying to conserve capital.
We explored the business case together of either downgrading or pausing our engagement, and it became obvious based on their current financial situation and future goals that we should keep working together.
After all, they were acquiring customers and paying back their acquisition costs in their first month, meaning every month after was profitable—including my fees.
The client wasn't close to these numbers (something they know they need to fix), so it was an eye-opening experience for them. They decided to keep at my full rate and scope for the indefinite future.
Give this episode a listen for a longer conversation on proving value and knowing your clients' numbers. Your own business depends on it.
