AUDIT AND TOP GRADE ALL ACCOUNTS - William eastman

William Eastman - “Living The Life...On My Terms”

Introduction
It is the third radio day after last week's World Summit, our hard launch of the radio station.

I want to thank you for our entire team, for tuning in and joining us to celebrate the start of our 3rd Season. Now it's time to make the changes that became apparent and take the business to the next level and expand our OnAir 24X7 coverage of the globe.

The station’s theme for Season 3: Many Countries, One Language - BUSINESS.

WHY?

5% of the world population employs 57%. Let’s turn that into numbers - 375 million entrepreneurs employee 1.9 billion people. We have the most significant community in the world, the facts don’t lie.
​
Objectives - The WHY
Stage V demands many profitability decisions. If you are Selling the company, ignore this step. Let the new owners deal with it. If you are going to Reinvent the business then this is essential. Not only is it required to move on to Stage VI, it is just sound business and now is the time.

Key Issues - Owner/Manager Perspective:

1. Lifetime Value of Accounts
2. Historical Data for Each Account
3. Current Profitability of Each Account
4. Deciding Who to Cut, Who to Enhance

​
What You Need to Know - The WHAT
You can only really successfully perform this objective if several other earlier objectives are achieved:

• A CRM (Customer Relationship Management) Platform that is consistently updated with accurate information;
• Value Mapping of all Variable Cost Processes (making products or delivering services);
• Company-wide ABC (Activity Based Costing) into all functions

What You Need to Do - The HOW

1. Determine or review the lifetime value of each account. Purchases per year X estimated time as a customer = ?
2. Review buying patterns over the last year. Up, Down, or Flat with rationale for the pattern.
3. Estimate or determine the share of wallet and chart it over time. How much of this account do we service vs the competition and how has that changed over time?
4. Determine current profitability of account - includes product & service buys. Chart profitability over time and match purchases to the profitability of products and services.
5. Rank order accounts and indicate the top and bottom 10%. Top 10% to receive added focus, more sales support, potentially upgraded or new offer, potential collaboration partner. Bottom 10% - raise prices, discontinue products and services, create a different offer to reduce costs and make the account more profitable.

​​​

C5.02.3NA