Channel 80/20 Heat: Results

Here is a way for your company to add a little extra zing to your sales.

GET STARTED

MMC HELPS YOU FOCUS ON
THE BIGGER PICTURE

Due to limited bandwidth, traditional field sales organizations focus on customer segments and products where revenue impact is most significant – retention & growth of existing large customers with core products (as they should).

However, this results in:

  • A lack of focus in newer or noncore products
  • Not enough time to get to all customers
  • A reliance on field sales as the only communications  vehicle and relationship owner to customers

How does MMC’s Channel 8O/2O product help?

MMC specializes in working with distributors in the building products industry
to better manage customer relationships.

Leveraging data, analytics, and multichannel marketing to support your field sales organization.

Acting as a turnkey virtual sales organization for your low volume "house" accounts that can’t be reached cost-effectively by field sales.

WHAT ARE YOU LEAVING ON THE TABLE?

MMC has analyzed hundreds of data sets for distributors in the building product industry, and they all tell the same story. By providing these three key data points, MMC can project the potential sales opportunity your customer database holds.

8O/2O Breakdown:

We have found that the average split of high value accounts to revenue is not 80% of revenue from 20% of accounts, but rather 80% of revenue from 13% of accounts.

Therefore, it’s likely that your account ratio is:

Value # Accounts % Accounts Revenue
High Value 0 13% $0
Low Value 0 87% $0

High Value vs. Low Value Performance:

In general, we see a high level of performance degradation between high value and low value based on sales coverage.

Given typical performance trends, it is likely that you might be seeing performance of:

Value # Accounts Annual Revenue Delta % Delta $
High Value 0 $0 +10% $0
Low Value 0 $0 -15% (-$0)

Account Coverage:

On average, we find that field sales reps are assigned approximately 100 accounts. However, we have also observed a “Rule of Thirds” where reps are truly effective at managing only 35 accounts each.

If only high value accounts are assigned to field sales, the following is likely true:

Value # Accounts # Sales Reps Avg Accounts/Reps
High Value 0 0
Low Value 0 None

Based on our experience with the Rule of Thirds, it’s likely that your highest value customers are broken out into three distinct groupings (see below). This often yields a situation similar to the overall company split, with a small proportion of accounts (typically those with a high level of focus from field sales) performing best, with the bottom Two Thirds of accounts performing at a significantly less optimal rate.

Category # Accounts Revenue Delta %
Top 1/3 0 $0 +10%
Middle 1/3 0 $0 0%
Bottom 1/3 0 $0 -15%

The Opportunity:

What if you could…

  • Eliminate the decline in revenue of low value customers: -$0
  • And grow those same accounts by 10%: $0
  • Adding incremental revenue to your top line of $0

See how we helped one of the the largest building products distributors in the US.

DOWNLOAD CASE STUDY

WE HAVE THE SOLUTION.

Contact us  to learn how Channel 80/20 can help!