The Slides

Key Account Management

SUSPECTS

PROSPECTS

CUSTOMERS

KEY ACCOUNTS

Identified but not yet contacted or visited

Visited but not yet buying

Buying regularly from you

80% from 20%

Where Are We Headed? 1. 2. 3. 4.

What is a key account? How do you get your message across to potential key accounts? How do you become a “partner” not a supplier? How do you measure the value you create and use it to win new business? 5. How do you audit a key account’s feelings? 6. How do you become an expert in their world? 7. What is the role of a key account manager? 8. What are the differences between an account manager and a typical salesperson? 9. How do you exceed expectations at each stage of their experience? 10. How do you manage KAM as a “team sport”? 11. What is the role of the Board in all of this? 12. What should an effective key account plan contain?

WHO IS THIS? • He was born on 3rd June 1947 • He always enjoyed his sport but struggled in the early days • He went to Oregon state university

SUSPECTS Identified but not yet contacted or visited

Which 10 words capture your company’s bit of magic, character and uniqueness?

• Your website? • Proposals? • Presentations? • Introductions?

Customers buy at an emotional level ...but justify at a rational level

So what do companies sell at an emotional level? NIKE

HARLEY DAVIDSON

REVLON

YOU!

WINNING

FREEDOM

HOPE

?

“We are the only...” “We are the first to...” “We are the best at...”

“We are the leaders in your sector”

“You won’t get it cheaper anywhere else!”

GOOD

BU UN SD I E NR ES ST SA N D I N G

SUPPLIER

PARTNER

OUTSIDER

FRIEND

POOR

GOOD RELATIONSHIPS

What Are The Partnership Indicators? • • • • • • • •

Clear evidence of ROI They tell you that you are a partner You understand their future strategy Good multi-level relationships Plan in place to develop the relationship They give you confidential information There are no nasty surprises They give you referrals

If you were arrested and charged with ‘planning to add value’ would there be enough evidence to convict you?

PRICELESS 3 AUDITABLE 2 QUANTIFIABLE IDENTIFIABLE 4

1

Killer Questions: 1. What will this proposal do to our bottom line? 2. For every £1000 we spend what will we get back?

What questions would you ask a key account to audit their perceptions and identify opportunities for the future?

Audit Questions •Where are we meeting your expectations? •Where are we exceeding expectations? •Where are we falling short? •What unresolved issues are there? •How do we compare to other suppliers a) in our industry? b) all others? •How would you sum us up in a sentence? •How many marks out of ten? •If we were an animal or bird what would we be?

The Future • • • • • • • • • •

How is your business changing and developing? What pressures will you face? What are your main objectives for the future and how will you achieve them? How could we help you? How could we add more value? How will you measure us in the future? What do you see as being the big issues for our relationship in the future? What could we do for you that we are not currently doing? What would we have to do to score 10 out of 10? Where would you be happy to see us have more of your business? Is there anything else I need to know?

• What makes good customer service ‘good’? • What makes bad customer service ‘bad’? • What happens?

How do you ensure that you are exceeding the key account’s expectations at each stage? Stages Enquiry Check-In

Room Bar & Restaurant Check-Out

Typical Experience

XX Experience

Stages

Enquiry

Typical Experience

•Polite •Friendly •Take details •Confirm booking

XX Experience

•Use names •Ask questions •Special needs? •Map link •Details of local events / attractions •Book restaurants / taxis •We sign confirmation

KEY ACCOUNTS 80% from 20%

What is the process for proactively “auditing” their perceptions?

If you are an EXPERT in the client’s world ...you never have to sell again!

“To improve our profitability by improving theirs!”

Your Company

Key Account

• Key account management is a team sport!

• “My customer” becomes “Our customer”

Team Diary “Key account management is a team sport!” Monday

Tuesday

Wednesday

Thursday

Friday

1

2

3

4 TEAM KAMDAY

5

8

9

10 SALES DIR AVAILABLE

11

12

15

16 TEAM KAMDAY

17

18

19

22

23

24

25

26 SALES DIR AVAILABLE

29 CEO K/A AUDIT

30 CEO AVAILABLE

31

“None of us is as strong as all of us”

Team Expertise Team

Food Sector

Keith

Transport & Logistics

Printing

Professional Services

*

Sheila

Mike

* * *

Pat

*

*

= Current, compelling ROI testimonials

Quarterly Annual Review Strategic Meeting Review

Quarterly Review Meeting

Quarterly Review Meeting

Quarterly Review Meeting

The quality of service we give the customer is influenced by the quality of service we give each other!

• Imagine that your top key account is producing 8% of the turnover • Mike, the “account manager”, wins the lottery and is leaving today

• He is handing over the account to Sue at 4pm • What would you expect Mike to hand over and discuss with Sue?

Intelligence

What is the SWOT situation?

Intentions

Implementation

What are the Who is going plans for the to do what future? by when?

Background information Intelligence

Organisation chart “The numbers”

What is the SWOT situation?

Allies and enemies Key account audit Key personnel Favours log Supplier split

Strategic bridges

“Allies and Enemies” HARRY WILLIAMS

VERY POSITIVE ALLY SUE JACKSON

POSITIVE

INTERESTED MINOR DECISION INFLUENCER TOM CHAUDHARY

MAJOR DECISION INFLUENCER

MINOR DECISION MAKER

MAJOR DECISION MAKER

INDIFFERENT

NEGATIVE VERY NEGATIVE ENEMY

DICK HALL

Key Personnel TOM CHAUDHARY

DICK HALL

HARRY WILLIAMS

SUE JACKSON

JOB TITLE

Commercial Manager

FD

CEO

SD

IN JOB SINCE

2010

1995

2009

2007

PA

Jane Wicks

Jane Wicks

Celia Gray

Pat Reynolds

REPORTS TO

Dick

Harry

Chairman Mary Cooper

Harry

NEXT LIKELY JOB

Production for 2 years

?

Group CEO in 2 years

CEO when Harry promoted

DIETARY

Does not eat fish

Wheat allergy

Loves pasta + real ale

Veggie + fine wines

CLAIMS TO FAME

Appeared in Big Brother

Met Margaret Thatcher

Gulf War 1990

Sailed alone across Atlantic

NO-GO AREAS

Politics

Labour Party

Drugs – son died 1999

Fox hunting

HOT BUTTONS

Karting Liverpool FC

Venice, Rome

Arsenal FC

Sailing, surfing, canoeing

FAMILY

Married with twin girls

Wife died – three sons

Married to Ann – son at uni

Partner Tom – no children

MOTIVATOR

Achievement

Security

Achievement

Influence

KEY DATES

?

?

Birthday 12/05/60

Getting married next May

Supplier Split Key Account: Bulldog Automotive, Warwick Value today: £28,000

Suppliers

Design

Copy

Stat

Forms

Mktg

Pack

Mgt

Other

Total

Us!!!

……..

£7k

£14k

£2k

£5k

……..

……..

£28k

Woodside Ind’s

£10k

£2k

£4k

£25k

……..

……..

……..

£41k

Print Rush

£5k

£2k

£6k

£4k

£5k

£9k

……..

£31k

KFL Breedon

£20k

£3k

£3k

……..

£18k

……..

£20k

£64k

Total

£35k

£14k

£27k

£31k

£28k

£9k

£164k

Intentions

What are the plans for the future?

To add value to them

To improve your business

To develop relationships

Implementation

12-18 month calendar

Who is going to do what by when?

Build around their timings

Start with the end in mind

SUSPECTS

PROSPECTS

CLIENTS

kamguru.com

KEY ACCOUNTS