Procedure for conducting ABC analysis
Posted: Wed Jan 29, 2025 6:09 am
After conducting an ABC analysis, you will be able to clearly identify the group of clients that are most profitable for the company. This will allow you to competently organize such components of business processes as:
allocation and control of the marketing budget (here it is important to take into account the interests of the most valuable clients);
focusing the attention of sales department fronk oil email list employees and other customer services on Category A clients;
development and improvement of USP for top clients;
actions to strengthen the company's position in the market.
Let us consider in more detail the scheme for conducting the ABC part of the analysis.
Selecting metrics to rank your existing customer base
In order for the analysis results to be relevant, it is important to prepare the data for work in advance. A situation often arises when the same client is recorded in the database under several different names. It happens that the customer himself uses several legal entities to conduct purchases, but more often the duplication of information occurs due to the scattered entry of data into the database.
If the organization does not have a single standard for entering the name of the client company, then there is a high probability of duplicates of the same customer. For example, "Firma1", LLC "Firma1", LLC "Firma1". This factor can have a significant impact on the analysis results, so it is important to eliminate duplicates from the database in advance.
Next, you should select one or more indicators on the basis of which you will classify your clients. Most often, revenue, sales volume, or marginal income figures are used as the basis for ranking. In some cases, the percentage of accounts receivable is assessed. The choice is made in favor of key points in the sales strategy.
The most convenient way to conduct ABCXYZ analysis is in Excel, so the data on clients and products is uploaded into this software environment. The ABC method involves compiling a unique list of clients and calculating the sales volume for each of them.
allocation and control of the marketing budget (here it is important to take into account the interests of the most valuable clients);
focusing the attention of sales department fronk oil email list employees and other customer services on Category A clients;
development and improvement of USP for top clients;
actions to strengthen the company's position in the market.
Let us consider in more detail the scheme for conducting the ABC part of the analysis.
Selecting metrics to rank your existing customer base
In order for the analysis results to be relevant, it is important to prepare the data for work in advance. A situation often arises when the same client is recorded in the database under several different names. It happens that the customer himself uses several legal entities to conduct purchases, but more often the duplication of information occurs due to the scattered entry of data into the database.
If the organization does not have a single standard for entering the name of the client company, then there is a high probability of duplicates of the same customer. For example, "Firma1", LLC "Firma1", LLC "Firma1". This factor can have a significant impact on the analysis results, so it is important to eliminate duplicates from the database in advance.
Next, you should select one or more indicators on the basis of which you will classify your clients. Most often, revenue, sales volume, or marginal income figures are used as the basis for ranking. In some cases, the percentage of accounts receivable is assessed. The choice is made in favor of key points in the sales strategy.
The most convenient way to conduct ABCXYZ analysis is in Excel, so the data on clients and products is uploaded into this software environment. The ABC method involves compiling a unique list of clients and calculating the sales volume for each of them.