Your Key Account as generally defined as those top 20-25% of your accounts that bring you 75-80% of your dollars. You should reset this at least annually, as rates and spending levels change. You may be looking at this by individual business unit, or by your entire cluster.
- Go to Financials>Account Billing>Monthly Billing. If you manage your account prioritization by business unit, choose your first business unit. If you manage your account prioritization by cluster, choose all business units.
- Choose Local, unless you want to include National accounts in your prioritization.
- Choose the time frame you want to look at to determine spending levels. You might want to look at the prior year, if resetting for the following year; or if resetting in the middle of a year, choose 12 months leading up to the month you are in. You want to be sure to include all 12 months, as each quarter/month has different spending patterns and levels.
- Do not choose any other limiting criteria or subtotal. You want to see the big picture!
- After you have run the report, determine how many accounts you have spending. That would be the number of lines on the sheet. (HINT: You may choose to NOT include the bottom accounts that obviously bought a booth at an event or bought a small digital sponsorship, for example. If you choose not to include those, simply move up to your bottom line for bottom spending other than those situations)
- Take that number (the number of accounts) and multiply it by .20 -- this will tell you how many accounts are making up that top 20%.
- Scroll back up and find that line. See what the total spending level is for that line (on the far right). (HINT: if the number is not a round number, you may want to consider moving it to the nearest round number. This makes it easier for your AEs to remember and focus. )
That is your Key Account Cutoff Level. Those at that level and above will remain or become Key Accounts; those below are making up the lower 80% of your accounts bringing you 20% of your dollars, and will be Secondary Accounts.