Show Me the Money
Posted: Sat Dec 28, 2024 9:38 am
This is where market data comes into play.
For instance, let’s say you work at an IT supplier with a suite of applications for data management. Let’s say you are assessing your customers in the United Kingdom. According to IDC data, in 2022, the retail space, Cazoo, Oasis Fashions, and Papa John’s International all spent around $1 million on data management software. In the transportation space, XPO Logistics and A.P. Moller-Maersk spent a bit less in the U.K.
Armed with that data, you can then find out how much they spent with you. It is a advantages of using our fantuan datadase straightforward exercise to compare the total CRM spending of clients with the total you received. Simply create a table to compare the two and check your share of wallet.
Figure 1: Using Share of Wallet to Categorize Accounts
Source: IDC, 2023
This allows you to do three critical things to improve your relationship and potential long-term revenue.
Recognize “Golden accounts”. These are accounts where you have a high share of wallet. It is important to keep the level in context. The threshold for what defines a golden account will differ by country, sector, and technology. Once that threshold has been reached, it is unlikely to expand. Growth from the account will occur mainly through incremental service or product add-ons and expected price increases. In so doing, it is crucial to not “nickel and dime” these accounts. Rather, they should be targeted for extra attention, “reinforcement” or validation marketing, freemium advisory sessions, thank-you gifts (allowed by law and company policy), and your company swag. Basically, give them all the extra service and attention you can afford.
For instance, let’s say you work at an IT supplier with a suite of applications for data management. Let’s say you are assessing your customers in the United Kingdom. According to IDC data, in 2022, the retail space, Cazoo, Oasis Fashions, and Papa John’s International all spent around $1 million on data management software. In the transportation space, XPO Logistics and A.P. Moller-Maersk spent a bit less in the U.K.
Armed with that data, you can then find out how much they spent with you. It is a advantages of using our fantuan datadase straightforward exercise to compare the total CRM spending of clients with the total you received. Simply create a table to compare the two and check your share of wallet.
Figure 1: Using Share of Wallet to Categorize Accounts
Source: IDC, 2023
This allows you to do three critical things to improve your relationship and potential long-term revenue.
Recognize “Golden accounts”. These are accounts where you have a high share of wallet. It is important to keep the level in context. The threshold for what defines a golden account will differ by country, sector, and technology. Once that threshold has been reached, it is unlikely to expand. Growth from the account will occur mainly through incremental service or product add-ons and expected price increases. In so doing, it is crucial to not “nickel and dime” these accounts. Rather, they should be targeted for extra attention, “reinforcement” or validation marketing, freemium advisory sessions, thank-you gifts (allowed by law and company policy), and your company swag. Basically, give them all the extra service and attention you can afford.