If you could elevate the revenue you earn from your median-value customers closer to your top value customers without increasing your head count, would you do it? Of course you would.
We’ve all heard of the Pareto principle: 80% of a business’s revenue usually comes from the top 20% of its clients. As a result, we naturally tend to assign our best sales resources to our most valuable clients, to keep them happy, well serviced, and to maintain their high-value status.
But here’s the kicker – what revenue improvements would you see from your ‘next best’ clients, if they were catered to by your best people?
In most businesses, there are one or two really exceptional sales people and Account Managers who deliver outcomes that are truly beyond the rest. As you know, such resources are rare, and should be leveraged to the optimal benefit of the business. Having them spend the majority of their time serving clients who may already have reached the maximum earning potential for your business is a wasted opportunity, and may be costing you thousands of dollars in missed revenue from clients who aren’t receiving as much attention.
So what can you do to make a change?
The problem many businesses face when they try to address such issues is that they lack the visibility they need to make informed, confident decisions. Many decision makers wouldn’t know exactly which of their clients deserve the most sales attention, or which of their sales people were best equipped to handle specific clients.
And as a result, they must simply put up with the status-quo.
So, what do you need to optimise your resource allocations effectively, and efficiently?
In today’s demanding customer market, managing by gut feel only doesn’t cut it. The first step to optimising your sales and account management resource allocation is getting clear visibility of your client retention and sales activities.
You may find your gut was right, but more often than not, you’ll be surprised.
Leveraging the right Client Relationship Management (CRM) software will help you:
1. Understand the current state of your business
A CRM can help you gain visibility of your business as it currently stands, from a sales, marketing, and client delivery point of view. Find out precisely; what’s going well, and what needs improvement? Use these insights to inform the changes you make, and provide a baseline to measure improvements against.
2. Identify the right levers for change
Leverage your CRM to track the attributes of your top customers, and use these to identify which of your ‘next best’ customers are the most valuable. These are the clients for whom you should be applying your best resources to, to help elevate them to the top as well.
In addition to tracking customer information, you CRM will help you identify who your best resources actually are, and what circumstances they work best in, based on their past performances. For instance, client industry and business size can have an impact on the success of a sales person.
As a result, you can match the right client to the right resource to truly optimise your revenue generation opportunities.
3. Facilitate efficient change
When transitioning customers from one sales person / Account Manager to another, a CRM will serve as the single source of truth, tracking all customer interactions, and providing a record of their history. As a result, the shift can be as smooth as possible, with little to no information-loss and less learning time required for the new resource.
4. Track the results of this change
Track the results of your initiatives in your CRM and measure them against expected outcomes. How much more revenue were you able to generate from your ‘next best’ customers as a result of better sales skill?
5. Make continuous improvements.
Once you’ve made the first change, continue ‘tuning’. Use your CRM to track what worked well and what needs improvement, and keep making informed enhancements to the process.
I hope these thoughts will help you when you work towards optimising your sales process. If you are dealing with any of the issues I’ve written about above and would like to discuss, please call me on 02 9542 2000.
If you’ve got some thoughts on my blog, please leave your comments below.Drew Arthur is the Managing Director of Micronet Systems, and is focused on helping businesses tune their processes for growth by leveraging cutting-edge technology.
To find out more, contact us at Micronet Systems on 02 9542 2000 or leave us a message here.