Pareto’s economic law or, the 80/20 rule, when applied across account analytics often places good, small customers into a “call less often” category. In essence, we call on the 20 percent of the customers whose historical contribution was 80 percent of the revenue.
Source: Modern Distribution Management, February 2, 2016.
Making money with smaller customers is possible, if you approach them appropriately. The author shares three tips to make sure you’re making the most of your smaller customer relationships: 1) Use the most efficient and effective channels to serve smaller customers. 2) Implement a process for more consistent pricing of small customers. 3) Change the pay structure for small customers to credit card or PayPal.
INSIGHTS: Whether you are a rep or a smaller account, this summary will help you establish the service and support elements needed to keep stock replenished, new items detailed and resources connected. Reps and accounts who see inside salespersons as their primary contact can easily work a coordinated service strategy to ensure even the smallest accounts stay on top of what’s current or new. Using web-based, customer-initiated ordering systems helps manage the functional elements and will allow time for focusing on key priorities and support requirements.