Understanding who your most valuable customers are helps focus your efforts to find new customers. Often, the most effective approach is to look for similar prospects.

However, at the same time, diversification is important too. It's risky relying too heavily on just a few key customers. If one or two big customers dominate your business, how will it cope if you lose them?

Even if you have many customers, it's risky if they are too similar - and so could be affected by the same change in circumstances. This could mean that all of them reduce their buying at the same time. For example, if your three largest customers are based in the US, an unfavourable change in the exchange rate could see them all drastically reduce their orders.

As markets change, you should regularly review your marketing strategy. Particular market segments may become less profitable as competition increases. Customers' requirements may change, for example, as individual consumers become older.

Continually review how valuable your existing customers are. Over time, customers who used to be highly profitable might demand lower prices. Other customers may increase their turnover with you as they grow. See the page in this guide on what makes your customers valuable.

Keep an eye on customers' future potential as well. It may be worth nurturing a relationship with a small customer with high growth potential. Working with your customers can also help you identify ways to develop new and improved products.