Account Pyramid

How to Build and Use an Account Pyramid to Track Your Business

An account pyramid is a great tool for tracking who sends you business and where you might want to focus more attention. This exercise can help you stay on top of your referral sources, maximize your efforts, and make informed decisions about where to spend your time. In this post, we’ll walk through how to create and use an account pyramid to stay organized and increase your business efficiency.

What Is an Account Pyramid?

An account pyramid is exactly what it sounds like—a pyramid structure that lists your referral sources by how much business they send your way. Those at the top are your biggest sources, and as you move down the pyramid, the volume of business decreases. It’s a simple but effective way to visualize where your business is coming from and where you might need to focus more attention.

While a lot of coaching programs use a printed version of the account pyramid, I prefer to manage it in an Excel spreadsheet. It’s easier to update and allows for more dynamic tracking of your referral relationships.

Why You Should Review Your Pyramid Regularly

At a minimum, the account pyramid should be reviewed once a quarter. However, it’s even better if you do it monthly. The goal is to keep an eye on who is sending you business and whether your efforts with certain partners are paying off. By reviewing this regularly, you can adjust your focus and identify which relationships need more or less attention.

Breaking Down the Pyramid: A’s, B’s, and C’s

Here’s how the pyramid works:

Top Accounts (12+ Closings/Year): These are the referral sources sending you the most business—ideally 12 or more closings per year. These folks are critical to your success and deserve most of your attention.
A-Level Accounts (4+ Closings/Year): The A’s are solid performers, sending you 4 or more closings per year. These are reliable partners who should stay on your radar.
B-Level Accounts (Not Sure Yet): The B’s are those partners you’re still building a relationship with or who are inconsistent. You’re not quite sure where they fit yet.
C-Level Accounts (1-3 Closings/Year): The C’s are steady, reliable sources. You might close 1-3 deals with them each year, but they’re not sending a ton of volume.

This is a basic framework, and you can customize it to your preferences. The key is to understand which partners are consistently sending you business and where you have the potential to grow.

Managing Your Pyramid in Excel

The reason I prefer using Excel over a printed version is that it’s easy to update and track. Here’s what your spreadsheet might look like:

Referral Source: List the people or companies sending you business.
Define the Relationship: Categorize them as A, B, or C based on their performance.
Leads and Closings: Track the number of leads they’ve sent you and how many of those leads you’ve converted into closings.
Conversion Rate: Calculate the percentage of leads that have converted into closed deals. This helps you identify where you’re excelling and where there’s room for improvement.

For example, if a referral source sent 80 leads and you closed 34 of them, that’s a 43% conversion rate—pretty solid! On the other hand, if another source sent 26 leads and you only closed 2, that’s an 8% pull-through. You’ll need to dig deeper to find out why that is. Maybe they’re sending lower-quality leads, like open house inquiries or online ad responses.

Here’s a Google Sheet link to the Account Pyramid: Excel Sample.

Interpreting the Data

Once you have the data in place, you can start making strategic decisions. Here’s how you can use the information:

Focus on High-Value Relationships: If someone is sending you a lot of high-quality leads that convert into closings, make sure you’re nurturing that relationship.
Reignite Dormant Relationships: If someone hasn’t sent you any leads in 12 months, it’s time to either reignite the relationship or focus your attention elsewhere.
Evaluate Low-Converting Sources: If you have a referral partner sending you a lot of leads but few are closing, it’s time to ask why. Are you getting lower-quality leads? Are there other factors at play?

For instance, if Joe the Realtor sends you 26 leads but only 2 closings, that’s a 9% conversion rate—something isn’t working. It might be that Joe is sending low-quality leads, or maybe you’re only getting the open house leads. Either way, this tells you where you need to focus your efforts.

In general, a 25% conversion rate is a good target to aim for. That means you’re closing about a quarter of the leads you’re receiving. Keep in mind, some market factors can affect this:

Cash Buyers: Typically, about a third of transactions in North Texas are cash deals, so you’re automatically losing some opportunities there.
New Construction: Many new construction deals go to preferred lenders, so you’re competing with them too.

By tracking your market share and conversion rates, you can set realistic expectations and goals for each referral source.

Knowing Where to Focus Your Energy

Once you’ve reviewed your account pyramid, you’ll have a clear idea of where to invest your time and effort. For example:

Go After High Performers: If you have a referral source like Joey the Realtor, who sent 35 leads and 11 closings (a 31% conversion rate), that’s a relationship worth investing in.
Don’t Waste Time on Low Potentials: On the other hand, if someone like Sally only sent you 5 buyers, there’s not much room for growth. Maybe focus your attention elsewhere, like finding another Joey.

Keep Your Pyramid Up to Date

The key to making the account pyramid work is consistency. Whether you prefer a monthly, quarterly, or semi-annual review, make sure you’re updating the data and adjusting your strategy. This way, you’ll always know where your business is coming from and where to put your energy.

If you need help setting up your own account pyramid, or if you’d like a downloadable template, reach out to us. We’re here to help you stay organized and focused on growing your business.