2.4 Assessment of MTPRO share of wallet portfolio

The share of wallet portfolio (figure 8) provides the foundation to assess which account clusters represent the most economical leverage to grow to a higher level. To grow an account cluster to a higher level means, for instance, to convert an A3 account to an A2 account. To determine the economical leverage for the different clusters the upside potential in terms of USD between the compared clusters is decisive. For example, the upside potential for an A2 to A1 conversion is the difference in average revenue per customer of 18 k USD to 105 k USD, which is equal to 87 k USD.

Table four below demonstrates the difference in the upside potential between the [A] and [C] customer group (according to figure 8, Share of wallet analysis of MTPRO-CIS).

Table 4: Upside potential of MT-CIS (Source: Self-made layout

The difference in the upside potential is clearly indicated by large factors of 1:33 with regard to A3 to A1, respectively C3 to C1 conversion. Translating this upside potential factors into an economical value, the bottom line is it is around 30 times more productive to convert an A3 to an A1 customer instead of a C3 to a C1 customer.

As a matter of fact, we need to consider the difference in effort allocation with regard to an [A] or [C] account conversion. The average conversion cycle for a [C] customer is estimated to be about 3 to 6 months whereas the cycle for an [A] customer is reckoned to be 18 to 36 months. Taking this into consideration the bottom line still is that the leverage for sales growth is about 6 times higher when targeting [A] instead of [C] accounts. This calculation only applies to MTPRO-CIS. However, according to other informal interviews it is assumed that other market organisations feature similar numbers.