Brief introduction of key account management

Every customer's order constitutes the company's sales revenue, but can every order bring profits to the company? Obviously, considering every order comprehensively, this is not the case. With limited human and material resources, it is impossible for the company to treat all customers equally, and it is impossible to spend the same time and energy to manage every customer. So how do you divide your own customer categories and allocate time to manage your own customers?

Pareto Theorem, also called "82 Open Rule", put forward by Italian economist Vilfredo pareto shows that 80% of the results of things are due to the other 20%. Applying it to customer management, we can see that 80% of the company's sales revenue comes from customers who only account for 20% of the total, and 80% of the company's profits come from customers who only account for 20% of the total. Usually, according to the most intuitive approach, the top customers of companies that undertake 20% to 80% of sales are listed as key customers, and many companies will distinguish the importance of customers according to sales.

But in fact, it is often not that simple. There are many quantitative and qualitative reference indicators for selecting key customers. It's not as simple as you think, just a few data can confirm it. The selected key customers should meet the current goals of the enterprise. Companies must integrate many factors, such as company strategy, marketing objectives, company market segments, customer status of competitors and so on.