A common misconception among agency owners

Some agency owners I speak with object to focusing on one vertical because of customer conflict.

Some customers don't want you working with their competitors. 

I get it. There's only a limited number of businesses in a vertical. And this conflict artificially lowers your agency's revenue potential.

While this can happen, excellent customer retention is an important byproduct of focusing your agency on a vertical.

Having great customer retention reduces the need to close every customer in your target market. You can have 3-5% of the businesses in a vertical market and run a profitable company filled with happy customers.

For example, when I was the CMO at Scorpion, our customer retention was 93%. Our competitor's customer retention was 50%. 

This meant they had to replace 50% of their business every year just to maintain flat revenue.

This churn put massive pressure on them to say "yes" to poor-fit customers (perpetuating the cycle).


Question to ponder:

👉 Does customer churn put pressure on us to say yes to poor-fit customers?

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