ACCOUNTS’ SEGMENTATION Account management. Even if a product seems like a necessary purchase for a business owner, the value has got to be there. These skills can be developed, but many require specialized training and coaching to become truly authentic, confident, and effective in the role. A summary of the customer’s initiativesDiscovery and Prioritization of Opportunities 1. Media Relations Ask questions. Key Account Performance Management framework (Internal) Key Take away: Have a plan and don’t suck, Key Account Management is a lift equal to the reward, see successful case study #1 here. If you really want to motivate people, put your money where your mouth is: show your account management team a path to make 40-60% more by following this process. The first step to changing this is to know what these roles are. Low margins, customisation, and because you need them… GAM has since been adopted by medium-size supplier… Some owners meet in their own smaller groups within the brand so we usually try to participate. Execute a framework for handling the most common issues that arise in a channel or reseller partnership. In order to maximize success, companies should approach large-scale efforts with a level of discipline... Get the latest growth advice via email twice per month. Is there anything we should be getting ahead of? These accounts make up the majority of the business' income. Key Account Management (KAM) is a professional sales approach which involves the supplier and client’s business working together to gain understanding of each others business and achieve common goals. Even in the cases where we don’t need to sell in the traditional sense, our account management team walks the customer through a sales process start to finish. It's a different way of working so it's a transformational process. Intermediaries If there’s a dip in calls, I usually hear about it before I even ask for an explanation. This is […] An accounting framework is a published set of criteria that is used to measure, recognize, present, and disclose the information appearing in an entity's financial statements.An organization's financial statements must have been constructed using a recognized framework, or else auditors will not issue a clean audit opinion for them.. He may only adopt our Drive-Thru Director at first, but our goal is that this will lead to using our full back-of-the-house system as well. Most of the top 5 suppliers in any market do many things well, all We needed to focus marketing on the value we add to our franchisees, their employees and ultimately the bottom line. SAM Best Practice #6: Validate the Plan. People wait until the very last minute to do things. hbspt.cta._relativeUrls=true;hbspt.cta.load(417879, 'b095c50b-5892-40e0-8801-afcd3e5a6445', {}); Register for one of our FREE Business Growth Briefings. The KAM Framework is covered in more detail in the Kogan Page book Implementing Key Account Management. Key Account Management is a strategic decision The broadened scope of superior key account management is reaching far beyond selling products or services to important clients with high sales turnover. It’s great intel and just another way to best serve our customer base. The Strategic Account Management Competency Model. Think about key account management as a set of organisational standards. Investor Relations Businesses that set up a strong sales discipline, move proactively to drive sales and anticipate customer needs will not only make money, but also create an environment of trust and integrity. It demands a new approach to the key account by including extra aspects of the client – supplier relationship. Under this new account management framework, we had to walk the talk and think through what the team needed to be successful. Managing a strategic account is an important job that requires consistency and discipline. Formalizing our account management team with process discipline, aligning each rep to a specific brand and building out a relevant commission structure has allowed us to motivate the team and commit to a set of common goals. Read, How to Rev your Channel Sales Engine with Marketing Enablement. Here’s some insight into what made our account management framework successful out of the gate: Having a formal, repeatable sales process cuts through everything we do. Identifying your key clients allows you to then work with their Architects, Engineers and Contractors, taking a more holistic approach to your specification strategy. Philadelphia, PA 19104P: (215) 717-2900, For investor relations, finance & administration:2929 Walnut Street Maybe we can help you solve that, too.”. Appreciate how sellers structure their organization to manage customer accounts; Compare and contrast the roles of customer service with customer success management with account management and key account management Page 4. The franchisees, though, don’t change and their voices are powerful. We also get a lot of inbound requests. As we stated previously, key account management is the approach a company or salesperson takes to manage and grow an organization’s most important accounts. Account managers take this information and continue to nurture the relationship. It’s important to create this kind of ownership mentality among the team. 6 Strategic Account Management Roles: And then, the best-case outlook if all goes our way. We hope you find these GrowthBits helpful and share them with your network. Towards sustainable profit yield — A framework for revenue management and key account management integration. A Strategic Account Management Framework for Customer Success 6. We also go through key performance indicators around calls, open opportunities and outstanding tasks to get deals closed. The relationship begins with corporate brand approval, and that translates into access to a brand’s network of franchisees, but then it is incumbent upon us to foster relationships with and sell to franchise owners directly. That’s how the group moves beyond a strict vendor role to become trusted advisors for our customers. Strategy Mapper ensures your sellers are executing at peak performance in every selling situation, from key account management, opportunity planning, meeting planning and execution by providing them a configurable, robust and intuitive framework within Salesforce. That is to say, the sales team can’t rely on the parent brand to tie it to the franchisee. A SWOT analysis 3. Content uploaded by Xuan Lorna Wang. Our business model naturally lends itself to reaching that end. There are two lenses - the first one is the aspect that the key account manager uses they're developing a strategy for their key account that's critical and it's a pathway they have to follow but equally in fact probably more importantly is how is the organisation structuring itself and developing a strategy and building its internal organisation around key account management. We hope you find these GrowthBits helpful and share them with your network. Because of the high volume of interactions, we approach this a lot like anyone would inside sales: daily phone conversations with existing and potential customers. In a split second, you can go from knowing everyone to not knowing anyone. For the past twenty years, Cranfield has pioneered the development of Key Account Management research in Europe through the KAM Best Practice Research Club, working with world leading businesses to adopt new frameworks and best practice to fully leverage key relationships and strategies. What’s going well? As a customer-facing team of 12 professionals, SICOM’s account management group is cold calling and responding to inbound calls from current and prospective customers. Tip: Strategic account managers must possess strong business acumen. Account management is a critical element to a company’s overall operating model. The funny thing, though, is that we rarely sell our products to the folks who run Burger King at the corporate level. We have to upend the manufacturer-to-distributor framework. Why Account Management Proactively identify account risk Reduce customer churn Increase Customer Lifetime Value. The Essential Principles for Success of Large-Scale Strategic Initiatives. They also let clients build nice interfaces for account registration. Key Account Management also known as strategic account management is responsible for the achievement of sales quota and is assigned key objectives/metrics relevant to key accounts. A opportunities 2. A Management Account ing Framework–Bordered” about here] Cost Measurement: Collecting Cost Data Measuring and managing costs begins with collecting cost data (see Exhibit 3). Philadelphia, PA 19104P: (267) 866–7999. Our model is win anything anywhere and once you’re in, there’s opportunity to add other products to a customer’s suite. Blog produced by:  Mark Davies, visiting fellow on Cranfield School of Management Key Account Management Programme and KAM Best Practice Research Club. There are a lot of resources linked on this post – leave a comment below if you have any questions. The solution 2. LLR Partners believes in sharing the wealth of experience and expertise within our portfolio companies, network and teams in order to inspire and help accelerate growth for a wider community of business leaders. In particular, the ACC REGISTER and ACC VERIFY subcommands should allow a network to provide a consistent interface to register new accounts, no matter what services software is used on the backend. We knew that if we structured our sales process and business model well, we’d gain momentum and create opportunities to build brand share within existing customers as well as among additional franchisees of the same restaurants. It’s a really effective and simple way to look at how to create new value. For investor relations, finance & administration: © 2020 LLR Partners. You have to upend the manufacturer to distributor framework – the sales team can’t rely on the parent brand to tie it to the franchisee. What can skeletons teach us about leadership, Why many companies get key account management hopelessly wrong, Executive Insight – Managing and Measuring Sales Performance. Instagram It's a different way of working so it's a transformational process. An account overview 2. System integrators 3. Want to find out more? Caring for your customers and maintaining those relationships will ultimately allow your team to go from vendor to trusted advisor in the eyes of your customer. Global account management is the natural extension of national account management. Take a look to see how supplier companies can improve their key account management programmes. ISVs 5. Business partners 6. A customer can enter at any point with any one product. What is your key account management strategy, how does it complement your overall business strategy. By adhering to this proven process, our account management training enables sales organizations to positively impact everything from customer perception to cross-team collaboration. We have always done business reviews for the brands we work with, but we’ve also begun doing them for larger franchises, too. To overcome that natural tendency, you’ve got to streamline the peaks and valleys of deal flow. To sidestep that, we do our best to maintain consistency and create a cadence. The ultimate purpose of KAM is to develop long-term, mutually beneficial relationships with specific businesses in order to meet strategic goals and optimize value in both companies. It’s not breaking news that people, if left to their own devices, will wait until the very last minute to do most things. Secrets to Effective Sales and Marketing Alignment. So here you go. To overcome that natural tendency, you’ve got to streamline the peaks and valleys of deal flow. A framework for key account management and revenue management integration.pdf. 2. Research shows that 70 percent of buying experiences are based on how the customer feels they are being treated 5. C opportunitiesAn Assessment of the Team’s Capabilities 1. What standards do you need to do when you're thinking about building your organisation? At SICOM, we build and sell technology that helps franchised fast food restaurants such as Wendy’s and Burger King run more efficiently and effectively, from kitchen and back of house operations to customer-facing point-of-sale interactions and digital signage. It was important for us to really drive that home. In the past, SICOM did very little proactive marketing. Account Management effectiveness is a combination of clarity of direction (strategy), a robust engine room (people, organisation, processes) and the ability to get anywhere faster (productivity and competencies). Technology is absolutely critical to that effort. Generate leads for expansion. Read: The #1 Reason Why Account Development Fails. By the way, I should mention at this point that an account management strategy is INTERNAL. Each can stand alone as a one-off sale, but they are built to work interdependently and function together as an ecosystem. Without a strategic account management plan, you approach your customer relationships without a checklist of bases to cover or things to address. We have never wavered from the following routine and, over time, it’s what’s allowed us to be more proactive. The best way we’ve found to do that is from the bottom up. These skills can be developed, but many require specialized training and coaching to become truly authentic, confident, and effective in the role. Each team takes public accountability, and it’s a clear indication that what we’re doing is working. Where are you running into problems? That hit our installation team, our finance team and our shipping department hard. It really is a foot race to market dominance and this helps us compete by staying organized and strategic with our reps’ time. As with just about everything in business and sales, when you have a plan in place, you can stay organized more easily while ensuring that no projects, customers, or clients are neglected. When that happens, it’s more of the same: listening, asking questions and educating that franchisee on what SICOM is about and how our products can make his or her business run better. Author content. 2929 Arch Street, An outline for a strategic account planning template should include:An Assessment of the Customer’s Business 1. Talk to them on a regular basis. Within an account management framework, create the right circumstances for success: a dedicated sales process, a solid commission structure, a fine-tuned business model and a culture of listening. From inception, we knew it was important for them to maintain a proactive approach in order to drive sales velocity and that success would come down to a mix of ongoing customer care and relationship management. I’m adapting the Blue Ocean Strategy Four Actions Framework. Key Account Management is a strategic approach distinguishable from account management or key account selling and should be used to ensure the long-term development and retention of strategic customers. For organisations looking to implement key account management, Mark Davies, visiting fellow at Cranfield School of Management, explains the three different perspectives which need to be covered in your approach. For the sales leader, the first six months of building an account management framework is spent teaching. You have to model the behavior you want to see in the team and walk them through the process line-by-line, deal-by-deal, stage-by-stage, close-by-close. The Account Aggregator is also required to have in-place a board-approved policy for pricing of its services, and proper systems for disaster risk management and business continuity. LinkedIn Your biggest customers are not your best customers. Get actionable insights to help scale your business twice per month. Key account management is the process of building long-term relationships with your company's most valuable accounts. It should be seen as being a strategic pillar of the wider business strategy. Focus on key account management; it is a different business model. This new frontier knowledge is continually integrated into our Key Account Management Programme. When you’re working with big franchised brands, there can be a lot of turnover. Key account management is a different business model, it's a different way of working, so the leadership needs to be cognizant of this and develop those strategies and push them into the organisation. Reach out to us any time to discuss your growth strategy. For example, we have about nine base products. Our Account Management Framework helps all functions involved in managing customers deliver an exceptional experience while optimizing customer satisfaction, customer loyalty, and revenue growth. Our work in this area is critical to achieving successful key account management programs for organisations looking to succeed at managing key account customers. A big piece of this is recognizing your customers’ pain points. We preload each opportunity into in draft form, follow an outbound call plan and then log qualifiers and metrics on each opportunity. And if you really want to motivate people, you have to put your money where your mouth is: we showed our account management team a path to make 40 to 60 percent more by following this process. Extended team 4. Developing a successful key account management (KAM) program is critical for achieving revenue and growth objectives, but given the complexity surrounding these programs, this isn’t an easy task. ACCOUNTS’ ANALYSIS Get an overall understanding of each account and collect the right input to segment your accounts effectively. After all, the individual franchise owners use our technology; they pay our invoices directly and rely on us for day-to-day support in their restaurants. Tip: Strategic account managers must possess strong business acumen. Strategic account management is an important job that requires rigor and discipline. Account Management Framework; How to Identify Key Accounts: A Quick Guide to Getting it Right. There are six distinct roles that must be played for strategic account management initiatives to deliver at peak potential. Among our key findings are that Top Performers in Strategic Account Management have strategic account managers who: 1. Its initial adopters were primarily technology giants like Hewlett-Packard, IBM, and Xerox, whose customers—especially large multinationals in the automotive, financial services, and petrochemical industries—were demanding that the IT products and services provided to all of their locations be compatible and supported to the same standard. Focus on key account management; it is a different business model. Few companies define the roles and play all six well. Inside salesA Su… Drive Value: The best strategic account managers grow accounts because they drive value for buyers proactively. B opportunities 3. It’s not uncommon for a franchisee to call and ask about our products. What’s the brand saying? Sales provides a brief to account managers with details about new customers. It creates an effective and efficient sales funnel, allowing our 12 reps to manage thousands of deals each year. This means that projects and tasks can easily become forgotten and get pushed to the side, while customers and partners are left fee… To turn buyers into business partners, a key account manager (KAM) typically provides dedicated resources, unique offers, and periodic meetings. Now that you’re convinced WHY you need an account management strategy, let’s talk about how to create one. SAM planning works largely the same way. Businesses that set up a strong sales discipline and can move proactively to drive sales and anticipate customers’ needs will not only make money, but also create an environment of trust and integrity with their customers. The key account management framework really focuses across those three areas but particularly it offers a set of standards that an organization can look at to start thinking about what does it do in year one, year two and year three to start developing key account management capability. Now, it’s not unusual for each team to report directly up to SICOM leadership with information on their pipeline and call activity. The ACC command framework provides a standardized way for clients to create and manage accounts. But there’s a trap in sales where you do something until it’s routine and then you just sort of stop. We built out a PowerPoint presentation for them to work from, put up a new website and created new sales and marketing collateral, and in all of it the message shifted from the basic features of SICOM products to actionable ways they make a difference in customers’ businesses. Culture & Careers, General Inquiries:Cira Centre Often they're your worst. The account management framework we teach covers three key stages of account management: data gathering, strategy sessions and execution. Before we revamped our approach, we would regularly receive 80 percent of our orders within the last 10 days of our 90-day sales cycle. SAM Best Practice #6: Validate the Plan. Companies that fail to effectively execute KAM programs routinely face spiraling customization costs, business unit resistance and limited customer receptivity. LLR Partners believes in sharing the wealth of experience and expertise within our portfolio companies, network and teams in order to inspire and help accelerate growth for a wider community of business leaders. Organisations that address the challenges (and opportunities) that come with managing customers and successfully navigate through the pitfalls and obstacles, will be on the path to a successful account management organisation. Within an account management framework, create the right circumstances for success: a dedicated sales process, a solid commission structure, a fine-tuned business model and a culture of listening. Submit Business Plan, Twitter Best Practices in Key Account Management JS5990. There are 7 steps that need to be followed for a successful Key Account Management action plan in the pharmaceutical industry: 1. Listening and saying, “Yeah we’ve already sold you this, but we hear you saying that you’re struggling with this other thing. All Rights Reserved. How to implement a Key Account Management Plan. The two sides (revenue management and key account management) of the diagram reflect the research findings, which demonstrate that company managers had separate agendas and, therefore, different management priorities.
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