Measuring customer profitability
Is it a reasonable assumption that KAM will be more profitable than traditional selling? There is only one answer to this question: never make such an assumption!
If ever there was a need to make better measures of profitability it comes with the initiation of a KAM approach. You are about to change the use of your company resources, perhaps dramatically, giving more to some, and taking them away from others; shouldn’t you want to know the impact of those changes – the returns on your different investments?
Assumptions are always dangerous with regards to profitability, even educated ones. It may be true that the practice of KAM results in a more efficient use of resources, with better targeting of your efforts, ...
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