Maximize the use of company resources

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When you know which contracts are most profitable to your business, you can recognize your most high-value customers and focus your efforts on retaining them as their contracts near the end of the subscription period.

Monitor sales rep performance
Knowing the ACV of individual customers and matching them to the sales rep in charge of the account lets you understand the total revenue each sales rep brings to the company.

This information allows you to determine the effectiveness some tips for running a successful telemarketing business of their training and how you can improve sales rep performance.

Most companies have limited time and resources, so you want to ensure that you’re allocating your valuable resources to the accounts with the highest return on investment.

ACV, in this case, gives you a sense of direction. When customer support is stretched thin, for example, you can decide which customers benefit the most from your services and which require more time and energy to keep. You can then reallocate your resources towards satisfying clients who bring in more value.

Provide insight into marketing strategy
Understanding individual account revenue generated lets you know which accounts generate the most ROI. Usually, these accounts have factors in common, such as industry or company size.

Taking stock of the common denominators of high-value customers allows you to build a profile of your ideal customer. Your marketing team can use this profile to create more targeted marketing campaigns for client acquisition.

You can also focus your marketing efforts on existing high-value clients to encourage loyalty and retention, such as offering incentives in exchange for contract extensions, reviews, or testimonials.