Ramping Up Your Revenue with Mid-Sized Accounts
Jun 8, 2016
While what constitutes a “small, mid, or large” sized account is different at every B2B company, one thing holds true across the board: mid-sized customers tend to get overlooked in terms of sales and service. And yet they frequently prove to be a powerhouse revenue stream, even when times get tough, if you harness them.
In narrative terms, your mid-sized customer may well be “The Girl Next Door”, the one you overlooked initially, but end up falling in love with.
Why Companies Tend to Pursue Large & Small Accounts First
From a sales perspective, large-sized accounts are obvious choices when seeking additional revenue: they have deep pockets, plus a sale often carries weight with your senior management as well as with new prospects. The downside tends to be that their complex company hierarchy results in a long sales cycle. Conversely, it’s easy to focus on small business accounts because you can get a quick yes or no. On the surface, sales potential within mid-sized accounts is not quite as enticing as either of those options: the sale doesn’t have quite the same panache of a corporate sale, plus there’s some hierarchy in the decision-making process so they’re less likely to close quickly.
Equally, mid-sized customers may get overlooked on customer service issues, which makes them more challenging accounts to maintain. Most businesses have great customer service for their largest customers, as senior management knows senior management. Small business customers, meanwhile, tend to adopt the “squeaky wheel gets the grease” methodology until their issue is resolved. Mid-sized accounts, by contrast, are frequently quieter about their problems and, moreover, often share their business between you and at least one competitor. If the competition is servicing them well and you are not, they can vote with their feet.
In short, it’s easier to sell to and service a large or small customer. Mid-sized accounts are more variable in both their needs and behaviors, so even compiling the data takes a bit more time, and tends to get put off until a rainy day that never arrives.
So why, then, would you want to pursue mid-sized accounts now?
Because it’s equally likely that your competition hasn’t been focused on them, any more than you have been. A little time and attention analyzing your mid-sized accounts and prospects can result in great returns.
Analyzing Your Mid-Size Accounts
Begin with your ERP, CRM and other data:
- Take your ERP data, divide your revenue into Large, Medium and Small accounts.
- Analyze growth or decline of the businesses within that mid-sized vertical.
- Analyze where these accounts originated: relationships, personal interaction, the web or trade shows.
- Look at specific accounts and overall trends.
- Use your CRM and reps to understand why these relationships are growing or declining.
Your criteria for analyzing your mid-sized customers could include determining: What is their real potential as a customer? Are you getting all of their business for a specific product or service, or is there more you can compete for? Alternatively, are there other products or services you could supply? How much additional business could you attain with faster delivery, or better customer service?
Once you have compiled the data, plan your marketing and sales attack.
- Know your customer: What they need, how purchase drivers are similar/different to others.
- Have sales & marketing work in concert: Refocus digital marketing campaigns while you simultaneously reallocate accounts so reps spend more time on those with most potential; focus messaging, sales tools and sales process.
- Make it fun: Themes, contests and rewards will keep your selling resources engaged.
- Track & measure: Project these revenues and lost revenues in other segments due to this change in focus. Set goals and reports through your CRM.
- Refine your value proposition as you go: Based on the results, what worked well, what did not?
Here at Mayfield, we recently utilized this technique for a niche market B2B client. The result was at least one additional major account closed every month for the duration of the campaign.
Get Started Today
Be the hero of your own narrative by recognizing the potential of your mid-sized account. With the right data and approach, mid-sized accounts can transform revenue projections, as well as help balance short-term and long-term revenue growth. Compound obtaining the account with ensuring good customer service and you might win enough business to transform them from a mid-sized account into a large one.
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