Why should you monitor your client portfolio?

Why monitoring your client portfolio?

At kopilot, we strongly believe that our app needs to move towards client analysis to better differentiate from accounting and reporting solutions.

Why exploring the client-side? Here are our five key principles:

  1. Wake-up call.
  2. Dynamic clients’ segmentation.
  3. Tailor-made client management.
  4. Prospecting your new “best clients.
  5. Developing an operational guide.

1. Wake-up call sound

A lot of causes may explain a sales decline. Those factors can be extremely varied and combined within each-other: poor performance of salesforce, the raising of a new competitor, the evolution of your customers’ needs, the poor choice in client selection, the insufficient renewal of your clients, name it…

Analyzing your sales in real-time allows you to sound the wake-up call in the event of an abnormal situation and therefore react as soon as possible.

In case of an internal sales force failure, you may take steps to restructure your sales team or train your salespeople to perform better.

In case of failure with your current portfolio, the signals are feeble. It is no obvious solution that highlights the weaknesses of your clients’ portfolio. Till now.

2. Dynamic clients’ segmentation

Assessing your client portfolio's performance allows you to rank all your customers according to various axes. We opted for the well-known RFM framework.

  • R stands for Recency: Do we maintain our clients active enough?
  • F stands for Frequency: Is our sales model encouraging our clients to buy again from us?
  • M stands for Monetary Value: Are we able to increase the value of our clients over time?

Recency: Do we maintain our clients active enough?

Clients being in different situations requires different actions. Know where your clients stand to adopt the most appropriate actions.

  • ➡️ Plan the invoice of your active clients.
  • ➡️ Propose additional services (products) to your sleeping away accounts.
  • ➡️ Propose maintenance or an upgrade to your hibernating clients.
  • ➡️ Play your last cards with your leaving clients.
  • ➡️ Clean your data with your clients having no activity.

Frequency: Is our sales model encouraging the recurrence?

A recurrence funnel is a powerful tool to diagnose your clients’ behavior. How often did they buy something from you over the last 365 days? Where do yours clients drop you?

  • ➡️ Identify instantly the nearly recurring clients to boost your revenue.
  • ➡️ Ensure your sales model matches the level of risk you find acceptable.

Monetary Value: Are we able to increase the value of our clients?

This is not available yet in kopilot. Feel free to upvote the idea in our suggestions.

Our goal, as business managers, consists of creating - and delivering - more value over time to our clients. Plus, the adage says it's cheaper to repeat business with a customer than to acquire a new one. All clients are not equal: it is critical to put in picture:

  • ➡️ Who are the clients the company is depending on?
  • ➡️ Who are those small accounts we might drop - or let to the competition - to allocate more time to our worthy clients?
  • ➡️ How much can I expect over its lifetime from a client we just signed?
  • ➡️ What is the value I already captured from my portfolio? How much more could we get out of it?

All three axes (Recency, Frequency, Monetary Value) pursue the same goal. We want to sort - and rank- your client to identify:

  • the best clients who represent a high potential growth for your company;
  • the loyal clients who do not show great potential growth, but rather a steady one;
  • the small clients who slow down your development and can easily monopolize more resources than they return to you.

3. Tailor-made management of your customers

Depending on the category in which a customer will be placed, your business strategy should differ. The customer portfolio analysis allows you not to miss out on sales opportunities and to focus on the highest value-added sales at the same time.

Your CRM will be more efficient when you develop sales and customer relationship strategies specific to each customer profile.

4. Prospecting your new “best customers.”

Keeping an eye on the performance of the client portfolio can anticipate downturns.

  • ➡️ If you notice that a significant number of customers are leaving you, it might already be the time to start a prospecting campaign.
  • ➡️ Knowing who your best customers will allow you to target prospects at similar organizations as your best customers and better train your sales force to better match your ideal customers.

5. Developing an operational guide

If you take the time and care during your performance analysis of the customer’s portfolio to document all the encountered problems and the provided solutions, you will gradually develop an operational customer relationship guide.

For every problem, think about possible explanations and successful solutions that have been put in place; and compile these pieces of information.

This evolving “best practices” guide will be shared internally with management and sales teams and your partners, too, to better manage the customer portfolio in the short and long term.

Are you managing your client portfolio? #TeamProActive or #TeamReactive? Leave your comments - and best tactics below!


kopilot is a digital CFO for the use of SME business owners. It works well for companies having not the resources to hire a dedicated person for finances.

It integrates seamlessly with #Harvest, #QuickBooks Online, #Sage Business Cloud Accounting, and #Xero.

It takes less than 5 minutes to get the digital CFO ready. There is no-setup and nor installation fees. kopilot is an affordable business management solution for the price of 2 hours a month in Excel. Try if for 14-day for free. The trial is all-inclusive.


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