What is a Strategically Significant Customer (SSC)?

who is your Strategically Significant Customer?
Strategically significant customers are those customers who create great value for the company and in order to retain them for the long period of time, company have to build some strong possible strategies. 20-80 rules is applicable here as you know 20 % of total customer base generate 80% of total revenue for the company so simply we can say that those 20% are strategically significant customers for a company.

Strategically significant customers

Strategically significant customers create more revenue, more value, loyalty and most of the time makes company to build separate strategy for them. Strategically significant customers purchase more products, lead the trends, some time act as company referrals and most of the time helps the company to generate strategies and they are trend setter.

Types of Strategically significant customers

Theoretically marketers identified strategically significant customers in four different types. At very first of strategically significant customer (SSC) types, self evidently is placed. The high life-time value customer is at the top because they create highest value for the company and they must be the focus of customer retention efforts from the company.  Life-time value potential is the present day value of all future profits that might be earned in a relationship with a single customer.

Now here must be considered that not all high life time value customers have high LTV. Let suppose a customer demand JIT customized delivery or demand some high after sales service, there might be chance of reduction in value. But another thing I want share with you is this that some time you intentionally serve some big strategically significant customers at just no profit no loss situation. It is done because this will give you a confidence in front of your other customer that you are serving a big giant in the market safely. For Example BMW’s customers who are highly valuable for company.

who is your Strategically Significant Customer? 
The next type of strategically customers is ‘benchmarks’. These are customers that lead other customers. Customers in the market watch them and follow them in order to create value for themselves. A manufacturer of vending machine equipment is prepared to do business with Coca Cola at breakeven. Why? Because they can tell other customers that they are supplying to the world’s biggest vending operation. 

In the strategically significant customer’s types, at number third is ‘inspiration’. Briefly the concept of strategically significant customers is those who generate high value for company. Value means collectively benefits a company gets received from the customer. This type of strategically significant customer creates value for company in terms of new ideas. They find new ways of improving quality or reducing cost. They may be the most demanding of customers, or frequent complainers, and, though their own LTV potential is low, they offer other significant sources of value. One biggest insurance company in England Brit insurance modified its claims process to satisfy one particular car fleet operator; this process eventually became the company’s default standard.

The last type of strategically significant is ‘cost magnets’. There are customers who absorb a unreasonably high volume of fixed cost, thus allowing other, smaller customers to become profitable.

Got any questions? Or maybe, have something to add? Please leave a comment below and tell us what you're thinking. Cheers :)



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Online Marketing Blog: What is a Strategically Significant Customer (SSC)?
What is a Strategically Significant Customer (SSC)?
Strategically significant customers are those customers who create great value for the company and in order to retain them for the long period of time, company have to build some strong possible strategies.
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