Client Value
Client value for creative organizations and service based companies is often more complex then a ranking based on revenue and associated costs. Agencies often place value on clients for a variety of different reasons - list, list, list, list, list,
A relativley simple exercise to get the ball moving in your organization would be to set up a grid and ask key account, operations, creative roles to rank clients using a simple 0 to 3 rank based on these various categories.
You should end up with a couple of different groupings and ideally a solid list of 'Tier A' clients that provide high no, profit and as well as rank high on your non financial based categories. Are you servicing these clients to the level they deserve?
How many clients fit into the tier that has a much higher rank of non financial ... vs. revenue/profit. If the size of this list outweighs that of the 'Tier A' clients you may have... or you may have to...
These are probably conversations to have with sales and accounts team. Silmultaesnouly you will need to ensure Price and Cost are also in line. meaning none of your pricing should be greater than your costs unless the client value is perceived to be high to your organization using measures other than cost (and proft and efficiency and all that good stuff). We covered client value in a previous post.