We have come to a realization. For the past three years, our company has offered sales training and sales consulting services across British Columbia, Alberta and Saskatchewan. We have worked with many clients, all in different business categories – agriculture, media, advertising and marketing, oil and gas supply, product distribution, manufacturing and hospitality. Despite the diversity, our efforts have brought us to a common sales and business realization. It’s probably one that you as a Professional Salesperson, or your business, is experiencing.
This one common observation is prevalent for all Professional Salespeople and the companies they represent. While we all want to grow our sales, how do we actually focus our efforts in the best direction for long-term results? Working harder is not necessarily the best answer until we drill down to find tangibility.
So, how do Professional Salespeople work smarter? They pursue the best clients offering the greatest potential for revenue growth. Here’s the tangibility you are looking for.
Stop running around and trying to get more sales from everyone. While that probably will increase your revenues somewhat, your time needs to be focused with a specific strategy. Every one of our current clients started out asking us for sales training. Our relationship with them has now developed into sales consulting. Here’s the Client Revenue Management Strategy we put into place. It changes your entire focus on achieving long-term sales success.
1. Key Accounts – These are your company’s Top 20% of all accounts in a given year measured by Volume. They hold the key to revenue growth based on the highest established buying relationships. This is where Salespeople need to be spending most of their time.
2. Secondary Accounts – These are the remaining 80% of all your company’s clients in the same year. While Secondary Accounts represent the bulk of your company’s accounts by quantity,they do not by the individual size of their investment with you. They are important, yet they will not lead you to record long-term revenue growth.
3. Target Accounts – Current non-billing prospects selected by Salespeople for New Business Development. They are vital to replacing attrition and moving your sales forward.
4. Growth Accounts – Current clients expected to increase yearly volumes substantially. Growth Accounts are either current Keys or Secondary Accounts that are prepared to increase their spend with you dramatically. Every company and its Salespeople have them.
5. At Risk Accounts – They are simply the opposite of Growth Accounts. At Risk Accounts are current clients expected to decrease yearly volumes by a significant amount. When these large accounts cancel their orders, it hurts! They can lead to a challenging financial year.
Key Accounts are where your greatest efforts of proactivity need to be focused. While they only represent 20% of your company’s total client base, they are responsible for the largest portion of sales. The Sales Team needs to be proactive with each to maximize opportunities.
Secondary Accounts are important and can be worked to Key Account Level Status with a strategy.
Growth Accounts and At-Risk Accounts have changing buying patterns and need to be dealt with accordingly. What will be your strategy to maximize the growth and minimize the risk?
Target Accounts need to be properly selected and proactively engaged. They allow Salespeople to maintain sales in challenging years and maximize revenues in great years.
Without a Client Revenue Management Strategy, your Sales Team will never reach long-term revenue results by design. If it happens, it will occur by default based on your client’s proactivity mixed in with sheer luck. You will not know how to repeat the pattern. Your company will continue to practice a “spray and pray” approach with all of your clients.
You will not plan to fail, yet without a Client Revenue Management Strategy, you risk landing up in virtually the same place.
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