For simplicity sake let’s assume the answer to be either small medium or large with the following relative characteristics.
- Small price
- Small margin
- Customer’s do not buy again
- Medium price
- Medium margin
- Some repeat business
- High price
- High margin (even 1 sale to one customer is valuable)
- Lots of repeat business
And there are some intangible values derived from customers like word of mouth, referrals and social media mentioning — increasing their lifetime value.
But the big piece in this puzzle is repeat business and thus customer service is truly critical. And this is something businesses can control.
And so when considering a job or starting a new business, consider the lifetime value of one customer. Choose your niches well and serve them very well.