Few salespeople making commercial decisions fully understand how their actions drive the P&L.
Your salespeople and account managers make decisions every day that affect your profitability. What product mix to offer. How far to discount. Which service team makes sense for a given client. Whether to bill for that extra meeting or the supplies that were requested ‘just to help out’. Yet few of the people making those decisions understand how their actions drive the P&L of an account, and ultimately that of the business.
The Commercial Acumen (CA) program builds greater awareness of the commercial impact of business decisions. It gives your team specific tools and techniques to improve account profitability. These include pricing under different gross margin scenarios, trading off price and volume, the margin implications of product mix, how to manage costs, and creative techniques for reducing profit leakage.
Who will benefit from this program?
This program is designed for all sales, account management, commercial and client service roles that have an impact on the pricing, margins or costs associated with an account.
It comprises seven modules that can be combined with other modules from our sales curriculum. Each of the modules is represented by one of the following cards, please click through the cards for more detail.
What will this program help you solve?
- Discounting to win or retain business
CA teaches attendees to look at all of the components of value, not just pricing, so that commercial targets can be maintained.
- Retaining business on last year’s prices
It is important to have a strategy in place for this to ensure that the initial rates do not stay in place for years after the deal was won.
- Low-margin accounts
CA helps individuals recognize the commercial value of the product/service mix and how this can be adapted to generate higher returns and deliver better value to the customer.
- Over-servicing of accounts
Clarity around how the pocket price differs from the headline price, and behaviors to improve net (as well as gross) margin by account.
- Working outside of scope
Recognizing when the account team is doing additional work that is not being charged for is just the first step; CA helps provide ways to tackle this and avoid it happening in the future.
CA is typically delivered as a 2-day workshop, supported by blended learning and assessments, and further enhanced by our cloud-based social and mobile learning platform, i-Coach.
Commercial Acumen opened my eyes to the importance of service mix, the cost of scope creep and the impact of the wrong team shape. I wish I’d done it years ago. Account Director, Professional Services