Most companies don’t need more clients to grow sales and revenue – they need to learn how to generate more sales and revenue from existing clients.
Too many leaders are spending fortunes for new leads, salespeople to manage those leads as prospects in a sales pipeline, and then people to negotiate those contacts into new relationships. That’s great, however, it takes a lot of time, money, and resources to open cold accounts or generate brand-new clients. There’s a better, cheaper, and faster way to grow a business – generate more business from existing accounts. In many cases, this approach can be up to ten times easier and cheaper
Why is this important? This approach is important because adding new or trying to revitalize cold accounts uses or adds a lot of marketing, sales, and support costs – eating profits. That’s counter to our powerful profit-producing principle of “more from less.”
“Less than 1% of companies are anywhere close to achieving full account penetration and client optimization.”
Less than 1% of companies are anywhere close to achieving full account penetration and client optimization. Why is this number so low? It’s not because businesses don’t offer great products and services. Low account penetration is usually because of two things: first, not having a well designed and executed account plan; and second, not crafting the best client-account-growth model.
“Less than 1% of companies are anywhere close to achieving full account penetration and client optimization.” Let’s start with the latter – having the right account model. Even if you have a great plan, as we have proven by accelerating growth in hundreds of client accounts, a flawed model will always fail to optimize your client-growth efforts. In most cases, the client-acquisition model that was used to first open and activate the new account is changed.
Here are examples of what many leaders do that doesn’t lead to account optimization. Once the account is opened, they:
To help our clients achieve fast and explosive growth, here are some things I recommend be tracked and measured:
Why are account penetration and account optimization so critical to your business success?
What’s the right client-relationship model to optimize accounts? There are dozens of different methods and models to achieve total account maximization. Please don’t fall into the trap believing the model you are using is the best approach. An effective account model design and execution depends on many variables. These include the size of your company, resources available, account potential, size of contracts, length and complexity of the sale, difficulty in the sales process, and ability to bring in new offerings.
Some of the philosophical decisions that you have to make include making decisions such as whether your existing salesperson stays with the account or someone else takes over. There are advantages and disadvantages to maintaining or switching. Each tactical decision will affect a dozen parts of your strategic account-growth model.
Here are a just a few principles that are critical to success when designing the right strategy- and account-relationship structure:
If you want to scale your sales and revenue growth faster and use fewer resources, let us build the best model, plan, and strategy to optimize your accounts.