You may have heard about the 80% – 20% rule? It basically means something like you make about 80% of your turnover with 20% of your clients. I guess you would also agree with e that these 20% of your clients are very important to your small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business, so what are you doing about that? You should do about it is learn about Key Account Management.
What is a key account? They are the customers that keep your small business revenue growing, look at some of the attributes of an key account:
- Provides your business with consistent and high value business
- Is looking for a long-term partnership with your small business
- Is of “strategic” importance to you or your business sector
- Offers you increasing sales for the future
- Is one of your most important customers.
You need to develop and maintain an value adding relationship with your key accounts, because they offer you a constant revenue stream of high quality and reliability – best of all a growing revenue stream. This in turn allows you to plan your business better (cash-flow) for the future, while reducing your sales cost.
Get the picture – these customers are among the most valuable assets to your growing small business or business start-up.