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Blog · Coverage and territory · Construction and building materials

Accounts opened and never used: the trade account funnel per branch

How a builders' merchant or trade supplier measures what happens after a trade account is opened, from the account master and the ledger: accounts opened per branch, the share with a first purchase within thirty days, the share still buying at six months, the median first-purchase value, and the branches and account openers whose funnel leaks at each step, so that the opening effort produces customers rather than records.

The short answerThe trade account funnel is opened, first purchase within thirty days, still buying at six months, from the account master's open date and the ledger's first and latest purchase. Per branch and per account opener, the drop at each step shows where the effort is wasted: a branch opening forty accounts a month with a first-purchase rate of a third is opening records, not customers. The list is recently opened accounts with no purchase, per branch, while the customer still remembers opening it.

A branch reports forty new trade accounts a month and the regional manager is pleased. Fourteen of them ever bought anything, and nine are still buying six months later. The account master and the ledger, joined, show the funnel per branch and per opener. This guide sets out the three steps, the leaks, and the list of accounts still worth a call.

The measures

Per account:

Opened: open date from the master First purchase within 30 days: first ledger date − open date ≤ 30 Buying at six months: a purchase in month 5 or 6 after opening

Per branch, per opener, per month of opening:

Opened, first-purchase rate, six-month rate, median first-purchase value

The rows you need

  • Account master: account, branch, opened date, opened by, project flag.
  • Ledger: account, date, value.

Account and opener identifiers only.

The assertion

accounts opened in the month = never purchased + purchased within 30 days + purchased later

Every opened account in one state. An account with a purchase before its open date fails it and is listed; it is a re-keyed account or a backdated opening.

A worked funnel

Branch Opened First purchase in 30 days Buying at 6 months Median first purchase
B-04 40 14 (35%) 9 (23%) £180
B-11 22 18 (82%) 15 (68%) £640
B-17 31 20 (65%) 12 (39%) £410

Branch B-04 opens the most accounts and keeps the fewest. Branch B-11 opens half as many and ends with more customers. The regional manager's number was the first column, and it was the wrong one.

Per opener, within a branch

Opener, B-04 Opened First purchase rate 6-month rate
OP-2 26 19% 12%
OP-5 14 64% 43%

One person opens two thirds of the branch's accounts and almost none of them buy. The opening is a form; the follow-up is not happening.

The list

Accounts opened in the last thirty days with no purchase, per branch, with the opener and the days since opening. A call at day ten recovers some of them; a report at month six recovers none.

Where it goes wrong

Accounts opened as the measure. Records, not customers.

No six-month step. First purchase counted as success; the one-job accounts look like retention.

Opener not recorded. The branch is the finding and the cause is one person.

List after the window. The customer has forgotten they opened it.

Every month, the funnel and the list

Mapped once, the account master and the ledger produce the funnel per branch and opener and the no-purchase list every month. Covirage builds this from the exports as they are. The construction page describes the setup, and the credit headroom guide covers the accounts that did buy and then could not.

Questions people ask

Why thirty days?

A tradesperson who opens an account intends to use it for a job they have now. If they have not bought in a month, the job went elsewhere. The window is stated and can be set to the merchant's own median days to first purchase.

Should account openers be measured on this?

On the funnel, not on the count. A branch measured on accounts opened will open accounts. Measured on accounts buying at six months, it will open the right ones and follow them up. The report shows both so the switch is visible.

What about accounts opened for one project?

They are real and short-lived by design. The six-month step catches them as lapsed rather than never-used, and the account master's project flag, where it exists, separates them. The finding is the accounts that were never used at all.