A long term focus on growing increasing sales without consideration of how to maximize profitability is like playing Russian roulette; it’s only a matter of time before eroding margins and increasing costs bring about a sudden demise.

Speaking from strictly a sales perspective, the sales force must think about and approach customer relationships in a very different manner. Consider the following 4 components of a profit focused sales approach:

• Customer profitability segments – manage investment of resources in customer account management based on profitability (existing and potential).

• Profit margin thresholds drive account management – customers who fall below this threshold must be assessed to determine whether there is value to continuing a business relationship.

• l[Customer value drives decision making

– customer value must be clearly understood and qualified in order to validate margin expansion opportunities.]l

• l[Collaborative account management

– managing a customer account for maximum profitability requires sales collaborate with other internal work groups (i.e. manufacturing, procurement, finance, etc).]l

To “keep more” and increase profitability requires a shift in perspective relative to how businesses are owned, managed and operated. A perspective shift begins with changing the perspective and actions of the sales force.

Shawn Casemore, President, Casemore and Co.
www.casemoreandco.com

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