Channel 80/20 Wingman: Results

Fighter pilots never go on
a mission without backup.

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)

The Rule of Thirds

Our experience has found that a typical field sales rep is assigned around 100 accounts. We have observed a phenomena we refer to as the “Rule of Thirds”, where there are distinct differences in performance between the top, middle, and bottom third of a field sales reps’ portfolio.

Third # Customers Average Sales Performance
1 0 +12%
2 0 +3%
3 0 -17%

The Opportunity:

By addressing your underserved low value customer tail, 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

By layering additional marketing support for your field-sales managed accounts, you could:

  • Maintain and accelerate sales growth within your Top Third of managed accounts
  • Uncover additional share-of-wallet opportunity and increase sales within your Middle Third of managed accounts
  • Extend reach and prevent attrition within your Bottom Third of accounts that are likely not receiving full attention from field sales

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

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WE HAVE THE SOLUTION.

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