Key Account Management- Account Deletion is also Important
In most of the companies, we have a large set of customers where revenue is generated. If you noticed out of the total customers 80% of the revenue or profit comes from 15-20 % of the Customers. Acquiring a customer is not easy but getting good revenue and profit from that customer is more important. Most of the companies sales team want to hold all the customers and also want to add new customers. If you do the analysis of the total customer and identify the key accounts which contribute to your profit, you need to focus more on to these set of 15-20% of customers. The top 20 % of customers have to be given priority in their service and also their requirement s. Also, ensure to trim your customer base by removing the bottom 20% of customers who are not performing or not giving any profit to the company. This activity has to be done yearly or half-yearly based on the nature of the business cycle. This will force the sales team to focus on the balance customers. Once the bot...