Exec Brief #5: Identifying High-Potential Accounts
•profit reports •profit strategy •management strategies •Wholesale Distribution Industry •High Potential Accounts (HPAs) •High Volume Accounts •High Potential Accounts ReportWednesday, March 9, 2016—With WayPoint's new High-Potential Accounts report, Randy MacLean demonstrates how you can change the nature of your profit line by identifying the highly leverage able good and bad accounts.
Initially, you might be driven to get all the business you can. Every account may seem like a good account, but this is not the case. You need the tools to help you recognize which customers are the best to have and which customers are not healthy for your business.
This report also allows you to determine which customers are integral to your cash flow and whether losing them will cost you operating income. You may not be able to "fire" a high-cost customer because you are reliant on their money. If this is the case, you need to reform that customer. There are several strategies that can improve profit, lower expense, and create a better relationship.
Or, if you cannot reform a high-cost customer, you must replace the dollars that customer is bringing in from another source. You need to know which customers have this potential and how much of your operating expenses are drawn from that high-cost customer. The High Potential Accounts report is designed to help the triage process on the accounts that matter most to your business.
By bringing in more high-value accounts, you are free to eliminate unprofitable accounts that are critical to your operating budget. Ideally, you can force these high-cost customers to take their business to your competitors, where they will drain your competition's profits.
Your best accounts are a template for the kind of customers you want. But, you need to be able to distinguish between a big account and a profitable account and they need to have a business-based reason to stick with you. Good accounts can lead to more good accounts and bad accounts – unprofitable accounts – can teach us what to look for in other bad accounts.
When you know your numbers, empower your sales team with those numbers, and provide concierge-level customer service, you will be offering very strong business-based reasons for a company to want to work with you.
For more information about Randy MacLean, visit: www.waypointanalytics.net
Customer segmentation can be one of the most powerful tools you can use to develop and implement plans to optimize and deepen your customer relationships.
New Money – How to Analyze & Boost Profit from Delivery
See the surprising new methods top companies are using to calculate and optimize delivery costs and pricing, generating millions in new profits.
Profit-Driven Customer Service
There's a direct link between high profits and second-tier customer service. This is how you use it to make more money.
Maximizing Account Potential through Segmentation
Randy MacLean discusses the value and utility of segmenting your customer accounts.
Cost Structures: What Makes for a Good Sale?
Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line.
Changing Sales Strategy Using LIPA
Randy MacLean talks about the emergence of a new sales strategy.
Using WayPoint's High Volume Account Report to Increase Profit
Randy discusses the benefits of the extraordinarily valuable High Volume Account Report.
Innovate Podcast: The Analytics of Super-Performing Distributors
Dirk Beveridge interviews Randy MacLean of WayPoint Analytics on the analytics and metrics of super-profitable distributors.
Recognizing High Potential Accounts for Greater Profits
WayPoint president Randy MacLean urges businesses to become aware of high potential accounts that drive most of the profitability.
Exec Brief #3: Concierge-Level Customer Service
Watch this impactful video from Randy MacLean and Dr. Jeanne Hurlbert. Learn how concierge-level customer service is integral to sustainable, permanent growth.
Keep the Best, Then Reform or Get Rid of the Rest
A superior territory has a greater-than-average proportion of profitable accounts. This is the critical factor in territory management.
To accelerate profit growth, make sure your company is using all seven of the levers that control profit.
The Problem with Having It All
Most sales operations look for every possible sale, yet that's the road to mediocrity, or worse.
Exec Brief #2: Tilting The Playing Field (Action)
Randy MacLean discusses the secret to sustainable profitability and lays out a proven 6-step strategic road map that will help you take your competitors down.
Exec Brief #1: Tilting the Playing Field (The Strategy )
Randy MacLean discusses a strategy to shift the profits in the market to your own company.
Why Does Gross Margin (Almost) Never Correlate to Profit?
Most executives were taught that increasing gross margin would increase profit, yet that's almost never true. Here's why...
Why Sales People Are Becoming Irrelevant
Market changes in two vital elements of the sales process have occurred.