Segmentor™

 

Everyone in business is familiar with the 80/20 rule, 80% of our revenues come from 20% of our customers. As the cost of acquiring new customers continues to increase (customers have more choices, are more sophisticated and demanding in their needs, and are more educated), the importance of increase of retaining current customers dramatically intensifies – so much that the 80/20 rule is becoming the 90/10 rule. 

 

In an effort to continue to emphasize the importance of account segmentation, The Chapman Group has developed a tool called the Segmentor™. This tool is designed to objectively measure specific data points of your accounts in 6 key areas:

 

     ·   Financial – total revenue last 2 years, annual recurring revenue,

         opportunity revenue, DSO

 

     ·   Products – product 1, product 2, product 3, product 4, active R&D

         alpha/beta partner

 

     ·   Strategic Value – industry visibility / recognition, dependence on each

         other, competitive leader in market,  geographic location

 

     ·   Competitive Situation – corporate alliance with our company, risk of
         losing is... if lost it would be a strategic loss

 

     ·   Client Size – number of users, number of units, number of contracts

 

     ·   Loyalty – “good reference site”, participate in account management

         process, participate in loyalty surveys, executive (peer-to-peer)

         relationships

 

Through this analysis, each account is given an overall rating. The higher the rating (based on a scale of 1-100), the more strategic the account, and the more important this account is to our portfolio.