Account penetration rate defined, accounts buying over accounts in a stated universe, the four denominators it is computed against and what each answers, the target list, the estate, the segment universe and the installed base, a worked example per rep against a target list, the roll-up, the identity to the universe file, and why a penetration rate with no stated universe is a percentage of nothing.
Penetration is a percentage, and a percentage needs a denominator. Most penetration rates in decks have one nobody stated. This guide defines account penetration rate, sets out the four universes it is computed against, works an example against a target list, and gives the roll-up and the identity.
Account penetration = accounts with revenue above the floor in the period ÷ accounts in the universe
Per rep, per territory, per segment, per period.
| Universe | Question | Source | Typical use |
|---|---|---|---|
| Target list | Of the accounts we chose to pursue, how many buy? | The company's own target list | Rep management |
| Estate | Of a customer's sites, how many do we serve? | The customer or a register | Multi-site customers |
| Segment universe | Of the addressable accounts in a segment, how many buy? | Purchased list or public register | Planning, marketing |
| Installed base | Of the units or sites we sold to, how many buy aftermarket? | The company's own register | Aftermarket, renewals |
The report names the universe on every line. A penetration rate with no universe is a percentage of nothing.
Account identifiers only.
Universe: target list. Floor: $5,000 in the trailing twelve months.
| Rep | Target accounts | Buying above floor | Penetration | Coverage | Reading |
|---|---|---|---|---|---|
| R-04 | 140 | 41 | 29% | 53% | Low and low |
| R-11 | 90 | 31 | 34% | 86% | Working, not converting |
| R-17 | 40 | 29 | 73% | 94% | Strong |
| R-22 | 70 | 44 | 63% | 49% | Winning without working |
Rep R-11 touches nearly everything and a third buy. Rep R-22 touches half and two thirds buy, which is inherited or lucky and will not last. Penetration alone cannot tell them apart; with coverage it can.
Region penetration = Σ buying accounts ÷ Σ universe accounts
Weighted by universe, never the average of rep percentages.
Σ reps' universe accounts = universe file count buying + not buying = universe, per rep
An account in two reps' universes fails it and is listed.
Universe unstated. Buying accounts over CRM accounts is penetration of the CRM.
No floor. A sample order three years ago counts.
Averaged percentages. The forty-account rep flatters the region.
Read without coverage. Winning without working looks like strength.
Mapped once, the ledger and the universe file produce penetration per rep and region, the identity and the not-buying list every quarter. Covirage builds this from the exports as they are. The penetration term has the short definition, and the penetration versus coverage guide covers the pairing that makes the reading.
Enough to exclude a one-off sample order: a stated amount, or an order in each of two periods. Without a floor, an account that bought once three years ago is penetrated. The floor is on the report.
Coverage is about activity: accounts touched over accounts assigned. Penetration is about sales: accounts buying over accounts that could. A rep can have high coverage and low penetration, working the list without winning it, and the two together are the reading.
Market penetration is usually company sales over market sales, in value. Account penetration is a count of accounts against a universe of accounts. A company can have low market penetration by value and high account penetration by count if it sells small amounts to many.