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1) What are some of the criteria the sales staff could use to evaluate whether a corporate contract account should be retained or dropped? 2
1) What are some of the criteria the sales staff could use to evaluate whether a corporate contract account should be retained or dropped?
2. What factors should the staff consider when determining new sources of business to replace the displaced contract business?
Expert Solution
Criteria that can be used by the sale staff to analyze a corporate contract:
- Determine the continuity of the business presented by the clients. If the business is incorporated to run in the long term, then the corporate contract can be retained.
- Scope of the business. If the scope is broad and includes almost all the market segmentation, then the corporate contract can be considered.
Factors that can be considered to determine new sources of business:
- Profitability index of the new business. The new business should be able to provide profits to the business. So, the profit-generating capability of the new business should be considered.
- The longevity of the business and its continuity should also be considered when determining new sources of the business.
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