Clients want less suppliers, not more. A relationship that is more like a rope than a string is much stronger and helps to reduce overall client risk. Multiple relationships create greater opportunities for cross-selling and for leveraging referrals.
In our experience, those that do generally achieve higher growth, enjoy more profitable business, and have a lower risk of account defection. When we ask companies that don’t measure loyalty whether or not their customers are at risk, invariably the answer falls into one of these three categories:
Think about it. It has been determined that an account is big enough to warrant an on-site or dedicated client services team which increases costs and because of the revenue associated with the account, deep discounts are offered and ultimately, the business has a lower gross margin. All of this in the name of volume.
Now, having grown up in sales, specializing on selling these strategic/key accounts, I can tell you first hand if done properly, they can be a catalyst for profitable growth....