Pareto Analysis plays a crucial role in Key Account Management. It is a tool that helps account managers identify the 'vital few' accounts from the 'trivial many'. This means it helps in recognizing the top clients that generate the majority of the revenue, often following the 80/20 rule where 20% of the top clients generate 80% of the revenue. By focusing efforts on these vital few accounts, managers can maximize their return on investment. The Pareto Analysis is represented as a line chart with individual accounts on the x-axis and the amount of revenue generated on the y-axis. The line chart, also known as the cumulative impact curve, assists in determining which accounts to prioritize for the highest positive ROI.
Need to better retain your biggest customers and maximize their values? Use our Key Account Manageme...
Download template