2.5 Conclusions and proposals

The assessment clearly displays that [A] account targeting produces much higher sales force productivity. As mentioned under 2.4 the effort allocation for [A] customer conversion is much more intense. It is also more difficult to convert them since not all of them are prepared to invest in a strategic partnership with MTPRO. Therefore it needs to be evaluated thoroughly which [A] customers are worth the extra effort.

The average revenue of 105 k USD per A1 customer in figure 8 is rather modest due to the fact that it more or less only consists of consumable business, stated by the Business Area manager of MTPRO in CIS. Figure 9 (page 19) will demonstrate that the sales potential per key account is much higher with a 100% share of wallet.

When implementing a systematic KA selection process the most productive way to generate mid- and long-term sales growth is a focused KAM. Moreover, an [A] account management, respectively KAM concept also delivers the following advantages;

• Many [A] accounts are internationally operational and have potential for plant modernisation and plant expansion. The better we are established with the main manufacturing sites in respect of strategic partnership the higher our chances to leverage this position on an international basis.
• A significant number of well-established key accounts have the advantage of exhibiting substantial reference power. Reference power means they deliver immense power when it comes to submitting references to new prospective customers. In winning new well-known and larger enterprises the customer portfolio gains in attractiveness.
• Transactional costs of fewer big volume accounts are lower than with a large number of small volume customers.
• High product sales leads to more service business opportunities for MTPRO
• A strong business relationship for MTPRO can open up cross-selling opportunities for other MT divisions.

Derived from all these analyses and conclusions my strong proposal is to implement an integrated KAM concept.