The ABC analysis of existing and potential customers enables the best possible planning of actions to boost turnover and acquire new contacts, while avoiding waste of energy.
we focus our energies on?
Let’s proceed with the customer analysis and in the top right-hand box we mark the companies with which we have a high turnover and which we know have a high purchasing potential, either because they buy the same product in large quantities, or because they are susceptible to cross-selling, i.e. they might buy more of our products. We can call this the customer category A: they are satisfied clients to whom we do not have to make any extra commercial efforts, except for continuing to maintain a top-class service. In the top left-hand box, we collect customers with whom we invoice a lot, who are satisfied with us, but from whom we cannot expect a further increase in turnover, due to their current or future production capacities. These are the B1 customers, to whom our commitment does not need to be intensified beyond what we already do. Continuing our analysis, on the bottom right we place customers who generate little turnover, but who are still of great purchasing potential, and this can be objectively assessed by several metrics. These are the B2 customers who are statistically overlooked the most, but who are worth more sales efforts to convince them to buy more. Finally, in the left-hand box below, we almost certainly mark a large slice of customers, whom we call C, who generate very few sales and show just as much purchasing potential, but towards whom, strangely enough, we insist on devoting intensive order acquisition activities. It goes without saying that we should shift our energies from this category to the others if we want to increase our turnover.