Maximising the Value of your Customers
The Pareto Effect is often quoted in relation to customer profitability – in that the contribution of a relatively small number
of key customers accounts for a substantial proportion of revenues in most businesses. It is therefore crucial to understand the
dynamics of the business relationship with these key customers in order to manage them effectively and profitably.
Understanding the basis of the business relationship entails an understanding of a number of dimensions upon which the value in
that relationship is founded ( i.e. products, pricing, payment, service levels, communication, account management practices etc. ).
The key client review has been developed to understand the dimensions of value and consequently identify opportunities for relationship
strengthening and value improvement.
The Key Client Review includes a review of:
| - Sales processes |
- Fulfilment & delivery service levels |
| - Ordering and fulfilment processes |
- Service quality and delivery |
| - Client information held by the supplier |
- Complaints handling |
| - The client’s perception of pricing |
- Client payment record |
| - The account profile in terms of volume of sales, profitability and % contribution |
- Communication channels and perceptions of their effectiveness |
| - Customer satisfaction surveys |
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