Pareto Analysis is a strategic tool used in key account management to identify the most valuable accounts. It operates on the principle that 20% of the accounts generate 80% of the revenue. By visualizing the distribution of revenue across accounts, managers can identify the 'vital few' accounts that contribute the most to the revenue. These accounts are then prioritized for resource allocation and strategic focus. By concentrating efforts on these key accounts, managers can maximize the return on investment and drive growth.
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