The 2020 Mid-Year Economic Update_long

Recommended Reading: The Value in Small Customers

It may be easy to ignore small customers, but there are big reasons why you shouldnt

Sales management and compensation plans often make it easy to ignore small customers. After all, the best returns come from the largest customers, right? Small customers are too small to need managing, right?

According to Jonathan Bein in Making Money with Small Customers, that way of thinking could be leaving a lot of money on the table. If acquired and serviced in the right ways, the results could actually lift net profit more than 50 percent, he says.

That doesn’t mean distributors should send out field sales reps to every account – that’s just not a sensible approach to servicing this group of customers. But distributors should consider adopting a strategy that includes a focus on making sure needs of these customers are met.

Bein says there are three main channels that are cost-effective for selling to mid-market and small accounts:

  • Functional, easy-to-use e-commerce sites
  • Proactive outbound inside sales teams
  • Direct response marketing programs, including print and electronic touch points

Most people know that sales can’t be a “one size fits all” endeavor. But at the same time, it’s important to make sure you’re not leaving money on the table by approaching it that way.

Improving the returns on small customers can also be approached through price improvement and reducing cost-to-serve. Read how in Making Money with Small Customers.

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events


articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.