80/20 Calculator: Results

Changing the way the world markets and sells

Find Growth Opportunity with Your Current Customers

Enter the following information to find out your company’s potential upside opportunity:

What're you leaving on the table?

By providing the following information, MMC can leverage past analysis of several hundred distributors in the building products industry to estimate the sales opportunity that could exist within your customers.

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

Modern Marketing Concepts

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 80/20 product help?

  1. We act as a virtual sales organization for your hard to reach customers
  2. We help field sales sell better through analytics driven multichannel marketing

For more info and your free company analysis.
Or call us at 1-800-720-1656

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