What is the significance of the cumulative impact curve in Pareto Analysis?

Pareto Analysis aligns with the concept of digital transformation in account management by enabling a more data-driven and efficient approach to managing accounts. Digital transformation often involves the use of advanced analytics tools to gain insights and make informed decisions. Pareto Analysis, which is based on the principle that 20% of the accounts generate 80% of the revenue, can be digitized and automated to identify key accounts that need to be prioritized. This allows account managers to focus their efforts on the most valuable accounts, thereby maximizing ROI. The digitalization of this process can lead to increased efficiency, accuracy, and productivity.

The visualization of Pareto Analysis assists account managers in prioritizing their efforts by helping them identify the 'vital few' accounts from the 'trivial many'. The principle behind this is that 20% of the top clients generate 80% of the revenue. The x-axis of the Pareto chart represents individual accounts, while the Y-axis represents the amount of revenue generated. The line chart is the cumulative impact curve, which helps determine which accounts to prioritize. By focusing their efforts on the account that has the highest cumulative impact, account managers can achieve the highest percentage of positive ROI.