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It is critical to be extremely clear the client relationship model that fits each account. Depending on each Client Relationship Nurturing Model, the cost will change. Client Relationship can range from simple buyer-supplier transaction or a Customer Operating Level Partnership. Client Relationship Model has to be decided after considering key factors like Potential Future Earnings and Extend of Operational fit with products/services offered. |
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The real art of Account management is to understand and adopt the most ideal relationship model based on factors like Potential Future Earnings and Extend of Operational fit with products/services offered. |
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Most companies focus on higher revenue generation, and very few understand that all sales dollars generated are not equal. Some business will produce higher profitability than others. The prime objective in Profit Management is to
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Secure new profitable business |
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Retain Profitable business |
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Grow Marginally profitable business to more
profitability |
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Reduce inherently unprofitable business |
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Without understanding the whole perspective, most clients do business relationships that do generate revenues but do not translate to profits. |
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Systematic Service Migration Planning is planning
service packages to systematically steer the services
offered in order to maximize the Account profitability as
they go up the relationship ladder. Many
entry-level products/services may be changed to high end
solutions as the relationship deepens, continuously
maximizing the profits from the same client over an
extended period of time. |
