Debtor Power Rankings: The 2-minute Strategy to Increase Sales Revenue

IN THIS ARTICLE

→ Understanding Debtor Power Rankings
→ Identifying Sales Opportunities
→ Strategies for Customer Re-engagement
→ The Importance of Maintaining Customer Relationships
→ From the Founder: "Why Your Business Needs a Debtor Power Ranking"

Maximising Sales with the Debtor Power Rankings Strategy

EXECUTIVE SUMMARY

• The Debtor Power Ranking strategy identifies which high-value customers are worth re-engaging with to drive business growth.

• Conducting a Debtor Power Ranking pinpoints customers who have not been as active recently but have historically been top buyers, allowing for targeted strategies to increase sales and maintain important relationships.

• This approach should be integral to sales strategies and customer relationship management practices.

In today's competitive market, understanding your customer's buying patterns can significantly boost your sales strategy. One effective method to achieve this is through the Debtor Power Ranking method. This strategy helps businesses identify which customers have decreased their purchasing over time and provides a targeted approach to re-engage them.

Understanding Debtor Power Rankings

A Debtor Power Ranking involve analysing sales data from the past two years and comparing it to the most recent six-month period. By ranking customers based on the volume of their purchases, businesses can see which high-value customers are buying less than before. This ranking system helps pinpoint where there are gaps in sales that could potentially be closed.

Identifying Sales Opportunities

The primary goal of a Debtor Power Ranking is to identify gaps in customer purchasing. For instance, if a customer was one of your top buyers in the past two years but has dropped in ranking in the last six months, this could indicate a sales opportunity. Perhaps the customer's needs have changed, or they haven't been engaged by your sales team recently. Recognising these gaps allows you to proactively address changes in customer behavior and adapt your sales strategies accordingly.

Strategies for Customer Re-engagement

Once you've identified customers who have fallen in the rankings, the next step is to re-engage them. This doesn’t mean simply calling them to push more products. Instead, it’s about re-establishing a relationship. Find out if their needs have changed, if there are new challenges they face that you can help solve, or if they simply haven’t been made aware of your latest offerings. Personalising communication and tailoring your approach to meet their current needs can make a significant difference.

The Importance of Maintaining Relationships

Maintaining regular contact with high-value customers is crucial. This doesn’t just keep you at the forefront of their minds; it also allows you to monitor their satisfaction and anticipate their needs before they even arise. Utilise CRM tools to keep track of interactions, preferences, and purchasing history to maintain a high level of service that will keep your key customers engaged.

Why Your Business Needs a Debtor Power Ranking

“I want to share with you a quick and simple method to help you identify potential sales opportunities.

The Debtor Power Rankings strategy involves looking, over the last two years, at who you have sold the most of your product or service to, then ranking them 1 through 100. Then, comparing that to the revenue rankings – so the highest selling customers – over the last six months, and looking for gaps.

What do I mean by looking for gaps?

If somebody is the highest selling customer over the last two years, and they're also the highest selling customer over the last six months, we might not have much opportunity to sell more to them. We might already be front of mind to them. We might already be exhausting our offering to them.

But if we've got somebody who's in the Top 5 over the last two years, but you look at the last six months and they're down in 10th, 12th, 20th, that might be someone we can pick up the phone and go, 'Hey, how can we sell more to this person?'

Naturally, we don't word it that way when we pick up the phone and talk to them. But that's our idea from a sales team perspective. We're looking at creating more opportunities, we're looking at creating more revenue for our business, but it might be because we just haven't been getting in front of those debtors.

Therefore, what we need our sales team to do is create a power ranking of the customers that have been up the top of our sales previously, but might not be as strong at the moment. And what do we need to do?

There may be natural reasons as to why somebody has gone down on the list - because others might've actually been pushed up, but there relative spend is still the same.

But I tell you what, there's a good chance that there's people on that list and businesses on that list where you go, 'Oh, gosh, haven't spoken to those guys for a while.' Pick up the phone. Get in front of them. Find an excuse.

It's amazing how many times I hear people say, 'I spoke to somebody and they said, oh, you're going to be in the area? And they go, yep, I'm going to be in the area...' The only reason they're going to be in the area is because of that conversation. They're just manufacturing that situation.

So to stimulate sales, to bring one idea to your sales meeting and bring to the table, do a review of your highest ranking sales for the last two years (in terms of customer) and see how they compare to the last six months.”

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