For many companies, 80% of business comes from 20% of clients.
Conversion rates for tier 1 clients should reflect the time spent on each deal.
Striking a balance between project value and time investment is critical. With the right focus, this is achievable. But beware the Danger Zone and the Risk Zone.
The Risk Zone
Companies pursue high value deals but do not invest time in them. This drives a low conversion rate for the deals, which trickles down through the P&L.
Companies in this zone need to consider 3 key things:
What are the internal obstacles preventing you from tackling the deal?
Are your priorities aligned with the deal value?
Have you dedicated enough time to truly obsess over the prospect’s pain points?
The Danger Zone
Companies put far too much time into low value deals. Consider the opportunity cost of spending time on these deals. The potential impact on the P&L is huge.
Companies in this zone need to think about these 3 things:
Be brutal about the time you have already expended. It’s never too late to back out – other opportunities will be around the corner
Even if you win the deal, does it benefit your P&L?
What have you learnt from past misses that you can apply to this deal?
The thinking is incredibly simple; time is your most valuable resource. Align this resource with the value of prospective deals.