Hot take: The loyal customer you brag about might be the single biggest threat to your forecast. When one account holds ...
Hot take: The loyal customer you brag about might be the single biggest threat to your forecast. When one account holds a giant slice of your revenue, you’re not stable—you’re balanced on a shaky barstool.
Four signals you’re in the Loyal Customer Trap—and how to get out:
- Expansion addiction. Upselling feels smarter: faster cycle, higher win rate, lower cost. The trap? It diverts attention, headcount, and roadmap toward one orbit. Solution: set a hard target for new-logo mix and make it visible (e.g., “≥40% of net new revenue from new logos”). Incentivize it.
- Roadmap capture. One account’s “urgent” becomes a delay in serving every other customer. Your product (or service model) quietly morphs around one use case. Solution: standardize what’s core, productize what’s common, and quarantine true one-offs. Say “yes—and” with paid scopes, not silent detours.
- Pricing gravity. Big share = big leverage: discounts, extended terms, custom support tiers. Solution: counter with term length, floor pricing, and value-by-segment packaging. Trade concessions for multi-year commitments and staggered renewals.
- Wishful diversification. “We’ll go get new logos” is not a strategy. It’s a budget line. Solution: fund the machine—pipeline programs, SDR coverage, targeted campaigns, ICP-specific content, sales enablement (decks, ROI stories, battlecards, plays). Staff for more deals and smoother onboarding. If it isn’t resourced, it isn’t real.
What good looks like:
- No single customer >10% of revenue; top 5 under 25%.
- Clear quarterly goals for mix shift by logo and by vertical.
- A repeatable motion: leads → meetings → pilots → converts—supported by content, SDRs, and enablement, not heroics.
Keep the trophies. Sell them more. But build a base broad enough that losing any one logo is a bad day—not an obituary for your company or your enterprise valuation.