“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

READY?

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

PREMISE:A business cannot

afford to lose customers from it’s

top 20%

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

PREMISE:Pursuing new

customer acquisition is

1,000% more costly that keeping

existing customers

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

PREMISE:It takes 16 new

customers in the bottom 80% to

replace 1 customer in the top 20%

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

How much do you REALLY want (need?) to know?

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

Opinion without facts is opinion

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

What do you KNOW about your business?? Where is the business coming from?? How much does it cost to get?? How much did it cost to acquire a (the) customer (CCA)?? How much is a (that) customer worth to us (LTCV)?? What is the value of our salespeople?? What is the value of our customer service people?? Are we paying sales OR customer service too much OR too little?? How reliable are our sales forecasts?? How can we make them more accurate?? How dependent are we on which customers?? How much are orders costing us? By type? By customer?? What opportunities are we not pursuing? Why? Why not?? What DON’T you know? (too busy?)What DON’T you know? (too busy?)

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

The 7th C of Credit

• Character• Capacity• Capital• Collateral• Conditions• Cash Flow• Customers (stickiness, profitability, ABC)

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

The Pareto Constant Isn’t…but it IS average

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

Focus….but how?

Concentrate on leveraging ALL your resources….people, time and money

Where is the leverage point?

THAT’s the first decision…..

What 20% of your (or your firms’) actions create 80% of the results?

20%80%

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

Lonely at the top…

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

Is SALES EVERYone’s job? Form DOH! To DUH! and in between…

Sales Marketing Product Development Manufacturing Management Shipping Quality Assurance Tech Support Reception Purchasing Human Resources Finance Customer Service

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

SO....1.Get the facts2.Priortize3.Plan4.Act5.Measure6.Repeat

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

“Seek the advice of a good consultant”

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

Quality Customer Development

Relationship Quality Assessment

Customer Development

Sales Process Analysis

Customer Recovery

80/20 Analysis

If 20% If 80%

If Sales Process or Relationship Issue Helping you develop your business by

working with your customers.1st

Independent validation of relationship2nd

Repair or expand relationship3rd

Colloborate with customer for product/service development

4th

Recover a lost customerGrow bottom 80% customers into top 20%

5th

Assess and recommend Sales Process Improvement to avoid future problems.

Customer

Product Development

“If I could change one thing, I would take the negative implications out of telling management the truth.” Jack Welch

OR....Do it yourself...

What’s the cost of NOT doing it?