By Pat Hinds
Companies that are focused on strategic vertical and account selling should be establishing the market opportunity for strategic accounts. Establishing market opportunity builds the foundation for taking a long-term strategic view of accounts, versus a short-term deal focused view.
Market opportunity is a cumulative of the product opportunities within a strategic account; you can use vertical finger printing (see my blog, “Establishing a Vertical Finger Print”) and opportunity gap (see my blog, “Defining the Opportunity Gap”) to help define the product opportunity. This information should be defined and populated in a CRM package so the sales rep is able to establish a revenue target for each strategic account.
The following is an example of market opportunity for the oil and gas vertical and cellular products:
· Vertical Finger Print – Establish how the oil & gas industry uses cellular. Example: cell phones, smart phones, laptop automation and custom applications.
· Establish Quantity – Current install base for each product. Example: 1000 employees, 600 smart phones and 400 voice only.
· Establish Average Cost – What the average price that customers pay for each of the services; in the case of cellular, it is called Average Revenue per User (ARPU).
· Establish Product Opportunity – Product adoption multiplied by average revenue per user.
· Establish Market Opportunity – Add your results from each product opportunity and the cumulative total is your market opportunity.
· CRM Integration – Create a field in your CRM called “market opportunity” and populate it with the market opportunity data.
Topics: Business Intelligence