Identify the industry value, the percentage you attend to it and the unattended potential that is in the hands of competitors.
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Today the question has changed. It is no longer how much do you sell to the customer? If not, how much is the customer worth? Presume that you have a client that invests you a million dollars the same and before it was enough credit for applause, but today the immediate question is how much is the client worth? Because if you think about it, the same and that client could invest twenty million, but one is happy to have only one million of those, that is, 5% of the customer's value .
Known in the markets aimed at the final consumer as a share of wallet or pocket share, in the world of complex sales it is identified as the customer industry value. A simple concept that quantifies the total monetary value of what a customer represents for a specific industry, in other words, what he spends or invests in a specific category of products or services.
If you are an advertising company, the industry value represents what your client invests a year in advertising, if your company is to organize events and conventions, the industry value is what your client invests a year in that, or if your company gives loans, the industry value is the total loans that a client has placed not only with you, but with other institutions. Then the industry value represents the cake, the percentage of the value you are taking from that cake, and the unattended potential of that whole section of the cake that is being served by one or multiple competitors of yours.
Sometimes you have 100% of a customer's industry value, but under the philosophy of not all eggs in a basket, the cake is usually divided into several slices. And with that, some of your clients that you think are small, are really only buying you little. The strategic objective then is to try to be the one who takes the biggest or dominant slice. What is recommended that you do to achieve this, is to identify who of your clients has more potential, from whom you can remove it and how to remove it.
See your list of customers. Above will be what you call your key accounts, the ones that generate the most business. In the middle will be those that you consider medium clients and in the end, rabies clients that you have even considered to purify your portfolio. Add a column that represents the industry value of each customer and another that puts in context what you are taking from that.
With that, the list will be presenting you with a more complete view of your clients and immediate impact strategies. What shouldn't surprise you is that customers who a few minutes ago you still considered gossip turn out to have unattended potential that could turn them into one of your new key accounts. And about that unattended potential you should refine your commercial effort to actively pursue and conquer all that piece of cake.
Now who are you going to leave hungry? And who are you going to keep accompanying at the table? The answers represent a slightly Darwinian approach or go back to the classic Sun Tzu book of knowing who can be defeated on the battlefield and who must be left alone. Analyzing the commercial conditions and the value propositions of the competitors you should arrive at the correct answers.
Regardless of the industry to which you belong, stop classifying your customers only in relation to what you sell them and start visualizing the real industry value they represent. Assign to your best resources those customers with a lot of potential and good profit.
- Identify the industry value, the percentage you attend to it and the unattended potential that is in the hands of competitors.
- On the basis of the unattended potential in each client, the commercial effort to conquer sales must be refined.
- Be careful not to focus only on price, but on how you can meet customer needs or solve problems.
- Allocate the best resources to strategic customers, identify who will take away market share and never be satisfied with crumbs.