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 requirements. 

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 bottom 20% is removed balance 60% of customers have to be connected over telephone or email so that the top 20% of customers will have full-time attention. This approach will increase the productivity of the sales team.


Optimization of the customers will improve the profitability of the company with the opportunity to create similar customers for the future.

Comments

  1. Chinmaya - A Passionate Marketing SoulOctober 2, 2020 at 12:48 AM

    Right Sir. Holding a Small base with better profit is always welcome than having a large base with lesser profit .

    ReplyDelete

Post a Comment

Popular posts from this blog

An official apology!!

Image
We’ve all seen the wave of “official apologies” from the corporate world—first a car company, then cement brands, and now even a political party jumping on the trend. What started as a clever idea has now become the height of forced creativity. Everyone is blindly following the viral format, and the meaning of an apology—a sincere admission of fault—has been twisted into just another marketing gimmick to glorify products and services. A joke is funny the first time. Maybe even the second. But repeat it a dozen times and it becomes boring. That’s exactly what’s happening. The sad part? When a brand genuinely needs to apologies in the future, customers might not even take it seriously anymore. We have so much talent and originality in our creative industry. There’s absolutely no need to chase every viral trend. Stand apart. Do something fresh. Authentic ideas always find their audience.
Read more

No Diet

Image
1. Trust your body's signals: Listen to hunger and fullness cues. 2. Eat naturally: Focus on whole foods, minimize processed items. 3. Don't force dieting: Avoid restrictive eating patterns. 4. Body awareness: Understand your unique metabolism and needs. 5. Balance: Prioritize overall well-being over specific dietary rules. This approach emphasizes: 1. Self-awareness 2. Mindful eating 3. Flexibility 4. Trust in bodily instincts 5. Balance in life Benefits may include: 1. Reduced stress around food 2. Improved relationship with eating 3. Increased satisfaction 4. Better overall health Follow your hunger...eat as required 
Read more

Risk of SPG

Image
Risk of SPG (Single Point Growth) The recent IndiGo crisis sent shockwaves across the country, exposing the danger of depending too heavily on a single dominant player. With IndiGo becoming almost a monopoly in the aviation sector, travellers had very few alternatives. As a result, even a single disruption created widespread chaos, affecting not only passengers but also the larger travel and tourism ecosystem . This is the inherent risk of Single Point Growth (SPG) . When an entire market leans on one major player, any setback—operational, financial, or technical—takes longer to recover and impacts everyone involved. Customers suffer, and the company itself loses the trust it built over decades. In this case, IndiGo’s 19 years of goodwill took a major hit. It’s a reminder that our industries must rethink the SPG model . Healthy sectors thrive on fair competition , multiple strong players , and diversified options . When businesses are evenly distributed, any crisis at...
Read more