Determining Optimal Key Account Levels and Profitability PPT

This PPT slide, part of the 47-slide Key Account Management 101 - Best Practices PowerPoint presentation, presents a framework for determining the optimal number of key accounts a company should manage, along with the corresponding levels of potential operating profit. It features a scatter plot that correlates potential spend, represented as wallet size, against potential operating profit, measured in percentage terms. The visual aids in identifying the relationship between these 2 variables, helping executives assess which accounts are worth pursuing.

The plot is divided into distinct areas, with thresholds marked for both global and non-global key accounts. The blue shaded regions indicate accounts that meet the criteria for global key accounts, while the lighter blue section represents non-global key accounts. This segmentation allows for a clearer understanding of which accounts could yield higher profitability based on their potential spend.

A critical takeaway is the emphasis on data-driven decision-making. The slide notes that initial estimates of potential spend and operating profit should be derived from historical account-level sales data, supplemented by secondary information and other indicators. This approach encourages a thorough analysis of existing relationships and market opportunities, ensuring that resources are allocated effectively.

The visual representation serves as a guide for executives to prioritize accounts that not only promise significant revenue, but also align with the company's strategic objectives. By understanding where to focus efforts, companies can enhance their account management strategies and drive growth more efficiently.

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Sales Consulting Frameworks Account Management Best Practices Key Account Management