It shouldn’t be a surprise that keeping a current client is more cost-effective than finding a new one. Sales executives can be overestimating the influence this has on their company, though. Frederick Reichheld, the creator of the Net Promoter Score, conducted research that shown raising customer retention rates by 5% may boost earnings by 25% to 95%.
Poor customer service is the primary cause of client attrition for the majority of B2B businesses. Many sales teams are so fired up about snagging the next big catch that they neglect to give their present clients top priority. But, after the first sale has been made, sellers that take the time and effort to maintain a tight relationship with their current clients might increase their earnings.
Here, we’ll go through how account planning promotes strong customer connections, how to get past typical account planning roadblocks, and how to create a successful account plan.
How does account planning work?
Account planning improves ties with current clients by developing strategies specific to their aspirations for development and growth. It is an important step in the account-based sales process. When done well, account planning resembles a collaboration between a company and its clients more than a straightforward business transaction. Account planning frequently calls for in-depth market, competition, sales, and revenue analysis of a B2B customer.
The importance of account planning
Account planning takes time to complete. A long-term investment, that’s. Building strong relationships with customers increases client retention rates, which generates more income throughout the course of the relationship.
Although it might be tempting to concentrate on attracting new clients, don’t undervalue your existing clientele. According to the “80-20 rule,” which is based on the idea that 80% of future income originate from 20% of current clients, many businesses create their account planning approach. Why? Upselling to an existing customer has a far better chance of success than bringing in a new lead.
You are prepared for the process of establishing relationships with clients via strategic account planning. It not only makes clear customer goals that might not be immediately apparent, but it also motivates you to learn about the client’s market, competitive environment, and untapped potential.
This base will enable you and the client to more accurately measure account success, achieve sales KPIs, and provide a channel of communication between internal and external stakeholders. Building this kind of trust with your clients will ultimately inspire them to consider you anytime they have a fresh sales idea they want to explore.