- Dive in and discover hidden value in your business
Sometimes, in the day-to-day grind of our businesses, we can’t see the wood for the trees. Profitability eludes us,
While this is an excellent process
We’ve all heard of the 80/20 rule, whereby 80
A client centric health check involves identifying and analysing four key factors:
- Existing client list (Everyone you have transacted with over the past 3-5 years and their sales data)
- Growth clients (Clients who have an expected 15% growth this year)
- Well-managed clients (Clients who will remain within current sales volume)
- At-risk clients (Clients who
are dissatisfiedwith the offering or sales are in decline)
Successful business leaders make key business decisions based on critical, real-life components
While not the most glamorous of pastimes, data analysis is the most useful guide in your business journey. Facts remove erratic emotions, providing a clear path that shows where we came from and where we are now, enabling us to plot a path to where we need to be.
Financial reality enables you to open your eyes and mind to opportunities ahead
In the worksheet, you will learn the process of creating a client-centric health check for yourself. All you need is a new Excel or Numbers spreadsheet, your most up to date financial statement, a good dash of focus and your favourite cup of coffee or tea beside you.
Discover your Hidden Value
- Open an Excel or Numbers Spreadsheet
- Create and name four columns
–A, B, C and D
- List all clients in column A
- Assign a revenue level to each client in column B
–choose either ‘high’ or ‘low’ Categoriseclients based on quantity or of products they purchase mix –choose either ‘high’ or ‘low’ in column C
- Identify clients as growth clients, well-managed clients, or at-risk clients in column D
- Your next step is to undertake an intuitive segmentation of your clients. Confirm your segmentation and/or identify any gaps between your current perception and actual client sales patterns
–look closely at your sales data.
- Finally, cluster your clients in a matrix. For
example‘A’ scored high in Revenue and Product columns and is identifiedas a growth client. ‘B’ also scored high in both columns but is classifiedas well-managed. Complete the remainderof the matrix following this rationale.
Some tips to remember as you analyse your data.
- A growth client should deliver 15
per centor more revenue in the coming year
- A well-managed client delivers between zero and 14
per centannual sales growth
- At-risk clients
are knownto be dissatisfied with a product or service, or identified as having declining sales over the past 3 to 6 months compared to the previous year.
- Identify any clients who have 1) growth potential, 2) are high in columns B or C and 3) have not been
activelyengaged with you for six months.
Create a client-centric matrix for your business, as shown in Figure 1 and a cluster chart as shown in Figure 2. (
- Can you see where the unrealised potential lies?
- Has your product offering expanded? Has this opened
- Have all your + + clients and Growth clients (identified in Figure 2) had direct communication with you or your team in the last three months?
- What could you do to engage your key clients in a way that is interesting, beneficial and innovative?
- Review your client-centric matrix and identify those who can
be shiftedfrom well managed to growth, or those at risk to a highly satisfied, strong revenue contributing client.
What you measure can
This matrix ensures you have a