Is it fair to treat customers differently based on ARPA

Is it fair to treat customers differently based on ARPA ?

Do you or your manager believe all customers are equal? I know this has been debated and talked about so many times, so often. A lot of us believe that all customers are equal. Let’s accept that not all customers are equal. A typical way of looking at that is, how much are they paying you, what is the potential that they’re paying, what is the size of that particular customer and hence they can be different, but what is the key indicator.

What is the key Indicator?

The SaaS Metric Average Revenue Per Account (ARPA) is the revenue generated per account, generally calculated on a monthly, quarterly, or yearly basis. But the key indicator is how much they are paying you for the same product.

Somebody might be paying many times less or somebody else might be paying many times more for the same technology. So you obviously cannot treat somebody who’s paying you 10s and hundreds of $1,000 versus somebody who’s paying you 1000s or 10s or 1000s of dollars.

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Treat your customers fairly

They need to be treated differently, but what is the fairway? Have you ever thought about it, “Am I being fair, just because they’re paying me less or more?  But here are the facts, the customers who are paying you more expect a different kind of service, and different kinds of services have different needs around complexity, around education, around implementation, help and support.

Versus somebody else who’s paying you far less for the exact same technology and the business needs are different the business situations are different

Hence, I think there’s nothing wrong in accepting the fact that they are paying two different things for different technology they expect to use it differently in their situations, or at least expect the different impact from your technology even if they’re using it in a similar fashion, and hence require and need a different kind of hand-holding.

To know more on why to segment customers, check https://dlrmj0mlxqn3o.cloudfront.net/blog/how-to-start-a-customer-success-practice/

Design your onboarding wisely

That is where we want to put together a different flavor of onboarding, if it’s onboarding a different flavor of education; it has to be done wisely and efficiently. There are customers with different sorts of SMEs and support, one customer might have a strategic dependency on your platform or your software  24/7 365 days. There is someone else who might just be having a very need of maybe five days a week or maybe just email support is good enough.

And hence, your expenses are going to be different to provide those two levels of service, and hence the charges.

 

Conclusion

And therefore, you want to treat them differently. There’s nothing wrong with segmenting your customers and treating them in ways that address their specific use cases better.

The main motive of customer success is customer satisfaction and if you treat them in a way that satisfies them, your customers will be happy and that’ll make your business grow.

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Swagata is a growth marketer at CustomerSuccessBox. Advocate for great customer experience. She is an avid traveler and when she is not working always on the lookout for new places to explore.