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Glossary

Gap value

The figure beside a gap: what a missing product, lane or account is worth, at list price, at the customer's own rate, or against an external wallet, with the basis stated.

DefinitionThe figure beside a gap: what a missing product, lane or account is worth, at list price, at the customer's own rate, or against an external wallet, with the basis stated.

Three methods

List price for new products. The customer's own rate for cross-sell, which is what a similar sale to that customer has actually closed for. An external wallet where the total is outside your systems.

The rule

One method per list, stated on every row. A list with mixed or unstated bases cannot be ranked, and a ranked list that cannot be reconstructed is discarded the first time someone disagrees with a line.

How it is computed

The missing or underbought amount valued on a stated basis: at the norm's median spend scaled to the customer's size, or at list price, or at the customer's own prices, with the basis shown.

Example

A customer buys no aggregates. Similar customers spend 18 percent of their total there. At this customer's $84,000 spend, the gap is valued at $15,100.

Where it goes wrong

Gaps summed into a pipeline figure. They are norms for ranking, not forecasts.