The importance of the smaller accounts

Speaking with a customer recently, I was very surprised to hear that they do not get a regular visit from certain companies representatives, so therefore do not get serviced and updated with new collections or P.O.S. (point of sale) marketing products.

Having worked within a corporate organisation, I understand the reasons why this can happen, and why these companies are missing fantastic opportunities to increase their business with these smaller accounts.

Retailers and Interior designers hold many supplier accounts, and in particular when trade goes quiet they are not going to be able to use all the suppliers products which in turn sees their turnover with some companies decrease.

This is where the parameters of the level of service starts to change. Based on the companies cost for servicing each account within a representatives area, a company or the representative will make the decision to only regularly visit accounts that are producing the business with them, this then alienates the smaller accounts as they will not get serviced properly.

By ignoring the small account holders the business with them will never recover. If the account holder isn't receiving the service they are not going to sell the product, and if they are not going to sell the product then they are not going to get the service. And on it goes!

First and foremost the representative should find out why the business dropped away and then work with the customer to find a way of improving the current situation. Allow a timescale of say 12 months to do this but evaluate at quarterly intervals on how things are progressing. Sometimes nothing can be done to bring the business back up to an acceptable level, and it is at that point they have to make a decision to "move on". 

However, they shouldn't just stop by ignoring the customer! They should discuss at length the options and what the next step is going to be so the customer feels valid and understands the reasons.

Reducing the time spent visiting the "good" accounts, (unless there is a specific reason or they want regular visits) a regular telephone call to stay in touch would be sufficient for those accounts. This can reduce costs and free up time which can be used to develop the smaller accounts. The "good" accounts are still receiving an acceptable level of service with the regular contact and the smaller accounts are receiving a good service by the visits.

The smaller accounts will flourish by generating more business and therefore increasing the areas potential. 

Smaller, larger & good accounts refers to turnover not size of business.

John Northwood