How Premium Brands Can Master A Recession

Six Disciplines For Maximizing
Account Level Profitability

by Brad Dufour & Michael Norkus

Profitable growth in today’s market is difficult at best – major product launches can have uncertain paybacks, pursuing new customers can be costly and acquisitions can be risky.

As a result many companies put an increased emphasis on growing existing accounts as a means to propel their business.

Our experience shows that companies that are the most successful at profitably growing existing accounts have developed strategies to overcome three key growth challenges:

  1. Not All Customers Are Created Equal: In today’s market who you target is critical and it is often counterintuitive which of your customers are most attractive to pursue
  2. More Is Not Always Better: The natural tendency to broaden your product line, while logical, often carries with it hidden costs for both you and your customer
  3. Resources Follow Path of Least Resistance: The cost to serve a customer often times becomes misaligned to account value distorting account profitability

Alliance has identified six disciplines which when mastered can assist companies in overcoming these challenges to accelerating profitable account growth – what we call the Account Profit Architecture.

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