They are one of your best customers. What happens if they become too important?

They are one of your best customers. What happens if they become too important?

If I asked which customer you would least like to lose, would you need long to answer?

For most established businesses, one or two names come to mind quickly.

They are reliable. Long-standing. Straightforward to deal with. They pay on time, trust your team, and bring the kind of work you are good at delivering.

They are a great customer. That is not the problem.

The useful question is whether, over time, your business has started organising itself around them without you ever deciding it should.

A great customer changes the shape of your business around them

This does not happen because the customer is difficult. Usually it happens because the customer is easy.

You stop actively selling, because there is already enough work. The pipeline goes on the back burner. Sales calls that used to happen weekly happen quarterly.

You start holding space in the schedule for them. When their work is likely to land, you make sure the team is available. Other customers get fitted in around that space.

Your team learns their systems better than any other customer’s systems. Their forms, their portal, their approval chain, their preferred way of receiving quotes. Everyone in your business knows how this customer works. Nobody has quite that level of fluency with the other twenty.

They get first choice when capacity is tight. When two customers want the same week, the great customer wins by default. That is not a written rule. It is just what happens.

You become less comfortable pushing back on price. When they ask for a small concession, the answer is usually yes. Because the alternative is the discomfort of a conversation with the customer you least want to have that conversation with.

You invest in something because they need it. A piece of equipment. A specific software integration. A trained person. The investment makes sense while the customer is there. What happens to it if they are not is a question rarely asked, because they are there.

You never sit down and decide, “let us build the company around this customer.” It simply happens, one sensible decision at a time, over five or eight years.

When one customer starts shaping business decisions

Your first instinct may be to reach for a number. What percentage of revenue does this customer represent? That number has its place.

The more useful question sits earlier than that.

Could you still make the decision that was best for your business, even if the customer did not like it?

If they asked for a five percent discount tomorrow, would you actually consider saying no? Or would the answer be pre-decided by everything your business has organised around them?

If their preferred contact left and the new person wanted to change the arrangement, would you push back where you would push back with any other customer? Or would the fear of losing them shape the response?

If a better opportunity came along that required the capacity you have been holding for them, would you take it? Or would the space stay held, because it always has been?

If they slowed down for six months, would you actively fill the gap with other work? Or would you quietly wait for them to come back?

The answers to those questions tell you whether the relationship is one you have chosen to invest in, or one that has started making choices for your business.

What that changes

The point of noticing this is not to change how you feel about the customer. It is genuinely a great relationship, and it deserves the treatment it has been getting.

The point is to notice whether the relationship has crossed a line where your decisions are no longer independent of the customer’s presence.

If it has not, and they are one strong revenue stream among a healthy mix of others, keep going. Your business is in a good position.

If it has, the answer is not to weaken the relationship. It is to strengthen your business around it.

That usually means putting energy back into your pipeline while the current work is enough. It means asking whether the space you hold for the customer is priced for what that flexibility is actually worth. It may also mean building the second and third biggest customer relationships so they carry more weight in how your business runs.

None of that is anti-customer. It protects your business, which is what helps you remain a good long-term partner for the customer in the first place.

One question to finish with

Think about the customer everyone in your business knows by name. What decisions would you make differently if they were simply another good customer?

The answer will show you where the relationship may have started shaping your business.

The goal is not to have less of a great customer. It is to make sure you are still choosing how your business operates around them.

Murray.

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About the Author

Murray Phillips is the founder of Insight CA and The Cash Out Catalyst. A former multinational CFO, Murray now works alongside established New Zealand business owners – bringing CFO-level thinking to businesses that have outgrown their accountant but aren’t ready for a full-time hire.

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