The Vital Importance of AccountAccountAccount refers to a record of primary and background information about an individual or corporate customer, including contact data, preferred services, and transactions with your company. Planning
The key to nurturing and growing long-term customers
Each company must decide the criteria for assessing what are high-priority accounts – such as size, revenueRevenueRevenue is the amount of money a business generates during a specific period such as a year or a quarter; also called sales., longevity & future growth potential
At the beginning of the fiscal yearFiscal YearFiscal Year is a financial accounting period of one year (that may or may not coincide with the calendar year), which is used by governments and businesses for taxation, budget planning, performance assessment, strategy formulation and other purposes., you need look at where revenue came from in the previous year, and where you believe it will come from this year.
To predict revenue from existing accounts – calculate your average churnChurnChurn is a term that describes the percentage of customers that leave or cancel a service or product within a given period of time. rate over 2-3 yrs and then calculate predicted revenue from existing accounts for the coming year and then reduce it by the average churn rate for a more realistic prediction.
“Net new sales” usually refers to new customerCustomerCustomer is an individual or an organization that purchases a product or signs up for a service offered by a business. acquisition, but it should also include cross-sellingCross-sellingCross-selling B2B is when a customer purchases a product and they are offered a second product at a discount or as a reward. and up-selling to existing accounts.
You also need to consider whether there are any factors such as a coming price increase that would result in increased revenue from existing accounts without necessarily upsellingUpsellingUpselling is a selling technique where a seller introduces a more expensive, an upgrade, or add-on to a buyer to increase the average order value. or expanding them.
Account Planning › The Basics…
Analyze Your Accounts in your CRM
Does a specific account have real growth potential?
How much revenue did the account produce last year?
Is there potential to upsell or enlarge the account?
What is the strength of the relationship with the account?
Are there subsidiaries, other business units, or departments that could be good targets?
Account Planning › Specifics…
Have you reviewed the latest scores?
Does the account have any outstanding issues that need resolving?
If you do Quarterly (or other) Business Reviews, have you reviewed the notes?
Has the company received an injection of capital or announced any new initiatives?
Aligning Your Offering
Based on your research can your products or services be positioned to support their new initiatives or challenges?
Can you add more value by solving a problem or identifying an opportunity that the account is not currently aware of?
Practical Market, Territory & Account Planning by Brian Sullivan
In this Off the Cuff Instant Interview, we asked Brian Sullivan for some practical tips for doing market, territory and account planning.
KPIs to Focus on Customer Value in 2021 by Mark Boundy
Happy New Year; now let’s get to work…working on the right things. Good Key Performance Indicators (KPIs) are useful management metricsMetricsMetrics are quantities that are measured and used to:, but great KPIs drive elite behaviours. In Radical Value, I observe that every company exists only to deliver more value to customers than it costs to produce. So, do your KPIs reflect value’s importance? I find that few do. Customer satisfaction.
Acquisition and Retention: The Yin and Yang of Customer Strategy by Andy Rudin
Which actions do companies often take for customer retention? Provide outstanding service and products Maintain loyalty programs Engineer high switching costs Design arduous processes for terminating services All of these The correct answer, of course, is e) All of these. People mistakenly assume that retention efforts benefit customers. But as customers who have attempted to.
It’s all about creating a customer base that is addicted to your organizationOrganizationOrganization is a cohesive group of people working together and formally bound by a shared identity (e.g., one team, company, club, etc.) and a common purpose (e.g., business growth, athletic victory, etc.).. Addiction isn’t a casual interest or a take-it-or-leave-it attitude. When customers are addicted to a particular organization they are “all in” as long as they continue to receive the value that converted them to raving fans in the first place.