LSA Global Insights Newsletter: 3 Ways to Protect and Grow Your Major Accounts

August 26, 2018

3 Ways to Protect and Grow Your Major Accounts

We define major accounts as the critical few client accounts (typically between 5 and 20 depending upon your sales model) that are the most important to you and your company both now and into the future.

While each go-to-market sales strategy has a unique flavor, the criteria typically fall into two main categories:
  • Financial Significance
  • Strategic Significance
Financial Significance
Financially significant accounts represent substantial financial value in terms of revenue, gross margin or profit to the sales person, the sales team or the company. In general, your major accounts should be 20% of your client base and provide 80% of the financial value.

Strategic Significance
Strategically significant accounts signify vital strategic importance in terms of providing you with marquee brand recognition, the ability to create valuable new capabilities, or the opportunity to intelligently expand into desirable new markets, geographies or verticals. 

While major accounts take a considerable investment of time and energy, the payoffs can be huge. When properly managed, major accounts can anchor your business through thick and through thin.

The Benefits of Major Account Management
While some companies worry that higher levels of investments in major accounts will decrease gross margins, recent research by Kapta and Harvard Business Review found major accounts on average:
  • Are 60% more likely to close than a new client
  • Spend 33% more than new customers
  • Have shorter sales cycles
  • Decrease marketing and sales costs by six to seven times
  • Have 20% higher customer satisfaction scores
  • Generate 15% greater profits and revenue
How to Protect and Grow Your Major Accounts
Once you define your major accounts and believe in the benefit of going after them, it is time to create a clear and compelling plan to achieve lasting and mutually beneficial relationships. 

If you truly want to protect and grow your strategic accounts, follow these three field-tested best practices.

Voice of the Customer
"LSA's ability to get a group of 20+ executives from around the globe on the same page, push their thinking to new heights, and ensure an executable plan was excellent. I would recommend LSA to anyone looking to take their leaders and sales execution to the next level."
Rob Sturgeon | Executive Vice President | ServiceSource

About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned