Strategic Key Account Management
In our work with clients over the past 18 years we are convinced that there is a clear link between profitability and effectively managing business with key account customers.
Increasing competition (often global) has created a great need for specialised management of the relationship with our key or important account customers. These customers are arguably a business's greatest asset and it is therefore critical that we successfully identify, plan, manage and develop business with these customers in a structured and systematic way.
Whether we are viewing regional, national or global markets the trend is the same - a smaller number of mega firms within each industry are tightly tied by ongoing relationship with strategically important customers. An effective, highly coordinated key account management strategy is essential for businesses that want to succeed and even survive in the future.
The challenge
- Larger, tougher customers with complex organisations;
- Shifting supply chain costs back to you;
- Introducing global policies and "rules" for suppliers;
- Demanding higher service levels and more discounts and incentives;
- Knowledgeable about technology, product specifications, the market and your competitors;
- Have high expectations and are lifting the bar on supplier selection;
- Supplier complexity - multiple business units selling to the same customer;
- Products and services alone no longer provide a source of competitive advantage.
What do customers want?
Since 1993 we have researched major companies in a wide variety of professions and countries to obtain their thoughts about the relationships with their suppliers. Many of their concerns are similar. A few of the more commonly expressed concerns are these...
The key account manager
How do you respond to these customer's needs? The answer, increasingly, has been to develop a system of key account management where dedicated key account managers are responsible for the total relationship with each key account customer.
How can Richardson Management assist?
The development and implementation of our exclusive and customised program involves the following process steps:
Needs analysis - A needs-analysis is conducted with management and participants to ensure the strategic key account management program caters to specific development needs and identifies common trends across the organisation.
Customised - the program is custom designed to be relevant to your customers, markets, products, processes, company policies and specific challenges.
Personalised - participants will work on their own real-world problems during the sales training.
Interactive - will involve open discussion, role playing and small-group sessions.
Minimum disruption – the program is scheduled to ensure a minimum of disruption to normal business operations. Our programs can be completed at one concentrated time or spread out over a period of weeks or months. A conference, seminar or meeting can be an ideal time when the whole team is together, to focus on improving strategies and skills.
Follow-up - We provide on going coaching support for the team leader and key account managers as appropriate.
Program outcomes
The objective is to provide you with a powerful process to build stronger relationships with your major accounts; reduce potential loss of major business; secure profitable revenue; minimise time wasted in servicing high maintenance accounts, or on non-sales generating activities; and clearly communicate objectives and plans with colleagues. Some of the specific outcomes are:
- Change culture from traditional sales to strategic key account management;
- Move from transactional selling to strategic partnership relationships;
- Segment the customers - prioritise, identify where to direct resources;
- Develop a written Key Account Plan;
- Research information (or gaps) needed for profiling each key account;
- Conduct a Key Account SWOT analysis to identify competitive advantages and weaknesses at the account;
- Conduct a value added search - identifying opportunities to add value and providing a TBE (total business experience);
- Developing key objectives for each account (including relationships);
- Identify importance of client relationships - the human side of business;
- Improve skills needed to build relationships - Emotional Intelligence;
- Completing a "relationship matrix" - strategic tool;
- Identify "key influencers" and how to maximise strategic advantage;
- Manage the internal buy-in of the Key Account Management strategy;
- Strategies to maintain and strengthen customer relationships.
Contact Tom for more information or to arrange an FREE no obligation discussion or meeting.