---
title: Data, Kills Denial, Which Prevents Disaster Part 2
description: “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” — Jim Barksdale, former Netscape CEO A B2B client of mine was debating if they should invest time, money and effort in ramping up their account planning effort. Account planning is hard, and they had a great sales year […]
---

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# Data, Kills Denial, Which Prevents Disaster Part 2

[Hernan Vera](https://www2.salesoutcomes.com/sales-outcomes-b2b-sales-marketing-insights/author/hernan-vera)

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**“If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” — Jim Barksdale, former Netscape CEO**

A B2B client of mine was debating if they should invest time, money and effort in ramping up their account planning effort. Account planning is hard, and they had a great sales year in 2017, with the expectation that 2018 was going to be even better.

Their data said that 70% of their sales came from existing customers, and 30% from new customers. That’s a healthy ratio typical for established companies in their industry.

Before they cemented their decision to not invest time in ramping up account planning, I asked them to let us look at the data.

## **Decisions based on average numbers are wrong on average.**

**We analyzed the current and prior two years of sales data, and we discovered that in face yes, 70% of sales were coming from existing customers. However, we dug deeper and found the following:**

- ### 70% of sales from existing customers each year came from ten customers, out of about 110 total customers. That 9% of the customer base.
- ### The top 10 customers generated an average of $7 million each year, while the remaining 100 customers generated an average of $500,000 each year.

They then realized that investing in strengthening account planning could deliver significant ROI. They decided to move forward based on the following assumption; they would develop at least one (1) existing customer in the bottom 100, to generate an average annual sales volume of $9 million.

By the way, their business is contractual with three-year minimum length. So, $9 million is $27 million over three years.

## **The results?**

After 18 months they had developed three accounts from the bottom 100 that were generating an average of $6 million per year each. Total return on effort was **3 clients x $6 million = $18 million x 3 years = $54 million.**

***Again, [account planning](https://salesoutcomes.com/b2b-account-planning/) is hard and requires senior leadership and front-line sales leader commitment. However, there are few initiatives that a company can invest in that generate the returns you can achieve through account planning.***

**Is account planning important to your firm?**

### Leave a Comment

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### [3 Outcomes from Successful Account Planning](https://www2.salesoutcomes.com/sales-outcomes-b2b-sales-marketing-insights/3-outcomes-from-successful-account-planning-3)

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### [Increasing Share of Wallet With Your Clients…](https://www2.salesoutcomes.com/sales-outcomes-b2b-sales-marketing-insights/increasing-share-of-wallet-with-your-clients-wont-happen-without-pap)

Who doesn’t need an additional acronym? So let us introduce…Pragmatic Account Planning (PAP). So what’s so special about the word Pragmatic in the context of...

[Hernan Vera](https://www2.salesoutcomes.com/sales-outcomes-b2b-sales-marketing-insights/author/hernan-vera) 

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