Menu

Channel 80/20

Is your sales force deployed
against a long-tail customer base?

80% of your revenue comes from only the top 20% of your customers. Are the other 80% of customers being reached by field sales alone? See how multichannel marketing can help bridge the gap.

Channel 80/20

Why Channel 80/20?
Companies with direct sales forces deployed against markets with highly fragmented customer bases are often challenged in two ways. First, how to best manage large numbers of small-to-medium customers to reduce attrition and grow revenue. Second, how to maximize growth with high value accounts in situations where field sales resources are already overwhelmed or assigned more accounts than they can effectively manage.

WHAT WE DO

Our turnkey program, Channel 80/20, provides real sales growth by integrating data, analytics, omni-channel marketing, and a virtual sales organization to help you maximize your high value accounts and provide turnkey account management for underserved small-to-medium customers.

Channel 80/20 Process

SEE WHAT CHANNEL 80/20 CAN DO FOR YOU

Using our interactive Channel 80/20 calculator and inputting only three pieces of data, MMC can leverage past analyses of several hundred distributors in the building products industry to estimate the sales growth opportunity that could exist within your high and low value customers.

80/20 Breakdown:

We have found that the average split of high value accounts to revenue is not 80% of revenue from 20% of accounts, but rather 80% of revenue from 13% of accounts.

Therefore, it's likely that your account ratio is:

Value # Accounts % Accounts Revenue
High Value
13%
Low Value
87%

High Value vs. Low Value Performance:

In general, we see a high level of performance degradation between high value and low value based on sales coverage.

Given typical performance trends, it is likely that you might be seeing performance of:

Value # Accounts Annual Revenue Delta % Delta $
High Value
+10%
Low Value
-15%

The Opportunity:

What if you could...

  • Eliminate the decline in revenue of low value customers:
  • And grow those same accounts by 10%:
  • Adding incremental revenue to your top line of

SEE HOW WE'VE GROWN SALES

Optimizing Building Product Sales Effectiveness