Where to Spend Your Time to Maximize Revenue - the Law of the Vital Few


Sales is all about maximizing profitable revenue. And the way you manage your time as a salesperson is all about focusing your attention on the opportunities that will pay off the most. Sales territory management training experts have worked out how to do this most efficiently. Here is their advice:

Because a small percent (15-25%) of your customers typically drive the majority (75-85%) of your revenue, it is critical that you identify your top customers and spend the bulk of your time working with them. Begin by categorizing your customers into 3 buckets:
  1. Big Kahunas.  Those you can pretty much count on for big numbers,
  2. Wannabes.  Those that have potential,
  3. Neverbes.  Those that are unlikely to buy.
You cannot neglect the second and third tier customers because they may well become top customers one day, but your main focus should be on the sure bets.

Outline the steps it will take to close a deal with your top clients and parcel out the steps, week by week, into the next quarter. Keep track of where you are in the cycle and be disciplined in your approach. Use any extra time to touch base with Tiers 2 and 3.

No comments:

Post a Comment