Does Outsourcing Account Management Make Sense for your Company?
Your customers are the lifeblood of your company. Of course no two customers are alike and managing relationships with each must naturally differ. How well you succeed will significantly impact your bottom line.
Quite often accounts are segmented as A, B, C and D accounts based upon annual revenue, with the A’s and B’s getting the most attention, while the smaller accounts (C’s and D’s) receive significantly reduced focus.
The rationale is straightforward. You simply cannot afford to allocate a major account sales representative to a marginal account. Nor can you afford to ignore any major account, considering the likelihood that the competition is nipping at your heels. The need therefore is to figure how to structure a cost effective plan to competently relate to each account.
For most companies the Pareto principle (aka “80/20 rule”) applies. In other words, 80% of your revenues come from 20% of your clients. Your business may be slightly different - 70/30 or 60/40 - but, for the most part, fewer customers deliver the majority of the sales.
It’s relatively easy (although many companies don’t do an effective job) to decide how to manage the major accounts. It’s the smaller ones, however, that pose more of a problem. Primarily because it’s unprofitable to assign costly resources to accounts whose revenues may not justify the cost/investment. This is where an outsourced solution can be useful .
Consider this as well: how well do you know your customers? Might there be one of your D-level accounts that is your competitor’s A-level account? Could you grow this relationship with a proactive account development effort and best the competition?
Or do you possibly have a B-level account that’s on the verge of jumping ship? The fact is that it is rare for managers to have accurate, comprehensive insights about their customers and their needs because sufficient resources are rarely allocated for proper account management.
Working in tandem with your internal and external sales representatives, a professionally outsourced resource such as provided by ETI Sales Support can maintain a steady sales and relationship building communication with these customers far more cost effectively than may be achieved with internal resources.
The result, in terms of account development, upselling and cross selling, can be extremely effective in boosting sales revenue. ETI’s relationship–building program will help your company to retain and grow your small accounts and give you valuable insights into your customer base.
Is this a practical solution for your company? You’d be pleasantly surprised how easy it could be to implement and evaluate.
Do you want to:
- Optimize share of wallet from existing clients?
- Grow your medium, small and marginal accounts?
- Have a better understanding of your customers?
- Maintain an updated database of client contact information?
- Build a body of business and market intelligence based upon profiles of your customer base?
- Reactivate inactive accounts?
- Establish a stronger relationship with key clients of your competitors?