Key Concepts In Account Management

Transcription

1 Key Concepts In Account Management Business Development Excellence Presented By Andre Harrell

2 This slide presentation was given by AH2 & Beyond Consulting and is for illustration purposes only to show how AH2 & Beyond Consulting can help facilitate these Key Concepts to Account Management in addition to helping you build/train your Account Management Team

3 As an Account Manager, it is absolutely imperative that you demonstrate solid account management skills. The goal of this presentation is to broaden your existing knowledge by reviewing various competencies and strategies that will take you to the next level of Business Development Excellence

4 Agenda Objectives: Define the importance of internal and external assets Describe the customer lifecycle and decision-making process Describe the types of players at customer accounts Identify the different levels of customer perception Indicate warning signs of an account Describe the key steps in business planning List types of negotiation tactics Identify strategies for achieving account growth

5 Asset Management Your accounts consist of both internal and external assets. Your internal assets are your company team members and your external assets are your customers. External Assets + Internal Assets = Your Account As an account manager, your job is to continuously and systematically manage your assets. Account Manager Internal Assets External Assets

6 External Assets In addition to knowing as much as possible about your external assets, you need to prioritize them. It s critical to learn which accounts are most important to your overall business. Spend more time in accounts where you can have the most impact.don t get caught up in the size of an account. According to Hunan, at least 80% of your management time and talent, sales planning, operational funding, coaching, and counseling should be dedicated to growing your key account business that means both to your existing customers and your prospects. The better you become at prioritizing and learning about your external assets, the more you will be able to deliver on the needs of your external assets and optimize the activities performed by your internal assets. Credit: Hunan, Mack Key Account Selling, New Strategies for Maximizing Profit and Penetration, American Management Association, 1993

7 Internal Assets Your internal assets (Company Assets) can help you turn your best customers into permanent external assets, if properly managed. As a corporate account manager, you may see your role as an orchestrator of identifying each member of your team and how they play in helping you to achieve your account goals. If you re in a team environment it s critical to share data with other team members before developing a strategy. Depending on the size of the account and its structure, your account planning team can vary in size. In some companies, your team may include Finance, Marketing, Business Analytics etc. Without making good use of your internal assets, you cannot properly manage your external assets.

8 Customer Lifecycle Every account has a lifecycle. At any given time, a key account could be in any stage from start-up to mature. You need to know where you are and what your customer s needs are in that lifecycle to appropriately set expectations on what you need and will be able to accomplish. Start-up: Interested in cost displacement/replacement. Entry: Interested in sales generation and sales loss prevention. Growth: Interested in maximizing volume, standardization, generation of follow-on products. Mature: Interested in reducing costs even marginally, making business re-competitive, and productivity improvement.

9 Customer Decision Process In addition to lifecycle, it is important that you understand the customer s decision-making process. This will allow you to better recognize the reasons behind certain customer behavior. Implementation Adjustments Over Time Problems Solved Buyer Cycle Recognition Of Needs Evaluation Of Choices

10 Customer Decision Process EXAMPLE SCENARIO Recognition of Needs Do we have a problem? How big is it? Does it justify action? Customer accepts that the problem is severe enough to justify change and decides to take action. Common strategic errors at this phase include failure to investigate or develop customer needs and making the product presentation too early. Evaluation of Choices What decision-making criteria should I use? Which vendor best meets our needs? Customer has a clear decision mechanism in place and has used it to select final contender(s). Common errors that occur when a customer is evaluating options are failure to uncover customer s criteria and making little attempt to influence the criteria.

11 Customer Decision Process Problems Solved EXAMPLE SCENARIO con t What are the risks of making the purchase? The consequences? Can a wrong decision hurt my career? Can we trust the seller? Customer makes the purchasing decision. Strategic errors during this phase may include ignoring concerns and pressuring the customer to make a decision. Implementation Are we getting value from this decision? How quickly will we see results? New needs and dissatisfactions arise. Failure to treat the implementation as a sales opportunity and failing to anticipate vulnerable implementation points are common sales errors in the implementation phase. Adjustments Over Time Things are changing, are my new needs being met? Will the vendor be able to grow, change, or adapt to our changing needs? Awareness of changes that need to be addressed. Strategic sales errors that can occur at this time include lack of insight into the market and/or the customer s changing needs. Changes can trigger a sales opportunity or the need to make adaptations to an existing program.

12 The Account Players In your accounts, it s important to know who the players are, what their role is, and how to manage each player accordingly to produce favorable outcomes. The Gatekeeper (e.g. sponsor ): Filters potential vendors and allows in only those offering something the account may want. They influence access, but not purchasing decisions The Influencer (e.g strategic coach ): They can include technicians, assistants, users, and advisors. They have high credibility and can persuade decision makers. The Decision Maker : They have the power to buy your product. The Anti-Sponsor : These are the naysayers who want you or your product out. Customers do business if it will increase their profits, improve competence and productivity of strategically placed employees, and/or improve their operations through streamlining, consolidating, reducing need for labor or energy, etc. In other words, the better you can make them look, the better your position!

13 Customer Perception Like the lifecycle process, you should have a meterreading on how your customer perceives you. Knowing where you are will allow you to address what needs to be done to get to the next level. 1. Ad hoc consultant who contributes to the efficiency of their organization 2. Someone who helps customer run their business 3. Supplier of good post-sale service/support 4. Supplier of good products/services 5. Commodity supplier

14 Account Warning Signs If you understand your accounts and where you stand in those accounts, you should be able to identify warning signs that may impact your account. Some warning signs include: Inconsistency in current account planning Your current relationship is failing to affect the customer s bottom line Your time to manage an important account is too low You are not considered an external manager of your customer s company. Taking the time to perform a SWOT (strengths, weaknesses, opportunities, and threats) analysis will allow you to identify warning signs. You will need to build a plan to overcome these issues to improve where you are in the eyes of the customer.

15 Identifying Customer Needs As you know, one of your primary responsibilities is to uncover customer needs and solve them in a meaningful way. But you also need to find a way to make the customer need you by being that solution and make that solution urgent. Uncover Dissatisfaction Go beyond the obvious. Ask yourself whether there are any problems you can solve that your competitors can't. Develop Dissatisfaction Clarify customers' needs. Make the quest for a solution more urgent. Channel Dissatisfaction Selectively channel dissatisfaction into areas where your products and services offer the best solutions.

16 Become Account Expert To become the solution and making your customers need you, knowledge is paramount. Understand your customer's business situation Profit & loss performance Competition Market forces Organization Political pressures Regulatory controls Other concerns Understand your industry General practice Key players Volume of account's purchasing in your industry Perspective The combination of understanding your business and their business will position you as someone who can see both points of view during potential conflict.

17 Account Business Planning While knowledge is paramount, knowledge for knowledge sake is useless. You need to put your knowledge to use by developing a systematic plan to meet your and your customer s goals. Look Back & Ahead Big Picture Implement Buyer Cycle Evaluate Situation Set Strategy

18 Account Business Planning Look at the Big Picture (the art of positioning) Use a systematic approach Develop a strategy of scale and ROI Use a team approach Involve the customer Appraise the Situation Target your larger accounts Gather information and focus on the usable Use a variety of sources Create a comprehensive database on the customer pertaining to what you sell them and trends in the industry. Develop an account profile to share with existing and new team members Draft a charter statement to define the direction of your business activity. See the situation through the customer s eyes as well as your own. Show your statement to your customer and revise, if necessary, based on feedback.

19 Account Business Planning Set Your Strategy Set your goals, establish end results Include Quantitative Goals (eg, revenue, unit sales, delivery target date, etc.) Include Qualitative Goals (eg, helping an account break into a new market, providing excellent support, providing unique solutions) Show goals and solicit feedback Look at strengths, opportunities, trends, key players, goals Ensure your team fully understands the account management plan before implementation Implement Develop implementation action plan Set objectives Look Back and Ahead Pause along the way to review Define your accomplishments Identify problems Reassess opportunities and reset the action plan

20 Negotiation To negotiate well, you must create a perception that you are willing to be a partner by exposing issues and making concessions. Set upper and lower price limits. Start near the bottom. Make concessions in small increments. Signal the bottom by making increasingly smaller concessions. Plan in advance to ask questions that uncover information, reveal underlying needs, and expose problems. Test for misunderstanding.

21 A Valued Asset You must continue to demonstrate your value as a resource and as a resource who brings bottom line results. Identify Growables by finding partners who can help grow your business Find customers whose business problems are susceptible to significant cost reduction by application of your expertise Gather and share information Develop relationships Provide creative solutions

22 Building Account Growth Remember, your accounts don t end when the contract is signed. You must continue to demonstrate your successes, reassess your business, and continue to identify opportunities. Develop, don t just maintain. Make every customer care call into a sales call that tries to extend your business by looking for new opportunities within the account. Document the good news. Ensure that your customer's files contain letters about successes, not just problems. Generate leads and references. Obtain customer's agreement to ask as a reference for other interested prospects; solicit referrals to other potential customers. Reassess your understanding of customer needs. Use visits and research to uncover and develop any needs that may have changed since the initial sale.

23 Final Assessment There are a myriad of theories about how to sell and manage accounts than there are actually sales people and managers. This presentation reviewed some proven key concepts in account management and hopefully it ll lead you and your accounts in a successful position. Key points to remember: Be Selective: Target customers with the highest growth potential. Be Aware: Be aware of the underlying psychological process to know what your customer may be thinking. Promote Teamwork: Work with your team, sharing ideas and input. Gather Data: Create comprehensive databases on your customers, pertaining to what you sell them and industry trends Do your homework: Study and understand your company, you customer s company, the competition, and the market.

24 EXAMPLE Account Management Plan Business Development Excellence

25 Plan Outline I. Introduction Slide (Where to Play? How to Win?) II. III. Sales Plan Dashboard (Business Imperatives) a) Accelerate Growth b) Sales Deployment c) Key Performance Index Efficiencies Accelerate Growth a) Market Analysis b) Customer Segmentation Strategy c) Evaluation/Buying Process (Strategic Priorities) IV. Sales Deployment a) Sales Force Positioning (Profiling/Targeting) b) Identifying Potential Markets c) Developing People V. Key Performance Index Efficiencies a) Budget Allocations (P&L) b) Sales Performance Communication c) Sales Processes

26 4 Step Plan Where To Play 1 What specific growth behavior should we drive? 2 Which customer segments do we want to target? How To Win 3 What drivers and barriers do we want to address with each target segment? 4 How should your product be positioned/what messages will help activate target segments?

27 Account Plan Dashboard Accelerate Growth Sales Force Deployment KPI Efficiencies Market Analysis Strategy Sales Force Position Tracking Budget Temp Business Imperative Dashboard Customer Segmentation Value Proposition Evaluation/Buying Process Strategic Priorities Strategy For Growth Profiling/Targeting Key Account Coverage US Markets Budget/Resources Developing People Sales Competencies Org Communication Marketing Com Sales Perform Track Field Sales Time Vacancy Rate Compensation Forecasting Technology Sales Processes

28 Accelerate Growth (Market Analysis Strategy)

29 Accelerate Growth Market Analysis (Outlook) Pharmaceutical Packaging Industry Will Overcome Challenges to Record High Growth Rates In The Future The fastest growing pharmaceutical packaging is expected to be prefilled syringes and parental virals (Biotechnology). The increasing demand for biologics will boost the demand for innovative packaging solutions in the pharmaceutical market space. With a $120 Billion worth of pharmaceuticals going off patent in the next 5 years. Global Pharmaceutical Packaging Industry Is Set To Ride the Growth Bandwagon with Rapid Expansion in the Pharmaceutical Industry Globally The global packaging market is expected to grow at a CAGR of 6.9% between 2008 and 2015, reaching a value of $68 Billion by The global packaging industry is experiencing rapid expansion in technology, innovation, manufacturing processes and integration.

30 Accelerate Growth Market Analysis (Outlook) 3 Key Market Analysis Steps 1) Current Market Participants Find out how you compare to the competition Assess current and future drivers and restraints Determine and exploit new market share opportunities 2) New Entrants Calculate time scales for strategy implementation Position yourself to capitalize on the market s unmet needs 3) Investment Community Analyse long-term strategies of the commercial packaging community Determine which participants will outperform the competition Assess attractiveness of investing in the commercial packaging markets

31 Accelerate Growth (Customer Segmentation) Where to Play? Which customer segments do we want to target?

32 Accelerate Growth 4 Components To Successful Segmentation 1. Know your customer Thorough profiling Volume potential Buying patterns (Early Adopters versus Late Adopters) Identify the various processes that could impact your business (could differ Globally) 2. Understand the customer Buying Process Map buying process for each account (could differ Globally) Gain perspectives from multiple channels point of view 3. Develop plan to impact buying process quickly 4. Plan for pull-through once product is closed and stocked

33 Accelerate Growth Segmentation Deliverables Quantify growth opportunities and leverage points (Identify richest targets) Identify customer characteristics that may explain likelihood to identify need and advocate for your product Identify customer characteristics that may explain your product s early adoption Identify Account characteristics that may explain likelihood of your product access and usage Identify Key Opinion Leaders (KOL s) target characteristics that will champion your product & additional offerings

34 Accelerate Growth Segmentation Should Always Encompass Customer Thinking Understand the Voice of the Customer - Decide what products and services to offer - Identify critical features and performance specifications for those products and services - Decide where to focus improvement efforts - Get a baseline measure of customer satisfaction to measure improvement against - Identify key drivers of customer satisfaction Identification of Account types End User type segmentation Organization type segmentation Account segmentation based on product use Leads to product positioning Sales Force deployment Target audience identification

35 Accelerate Growth (Evaluation & Buying Process)

36 Accelerate Growth Product/Buying Process Strategy (EXAMPLE) Identify Need Key Customer identifies need, advocates to decision maker Your Product is Put Through Assessment Process Product X is Not Put Through Assessment Process Product Product Evaluation Account Rep Provides Initial Specifications (Account) Develops Initial Product Review Account Procurement Develops Initial Product Review Customer Develops Initial Product Review Marketing Develops Initial Product Review 3rd Party Develops Initial Product Review Account Develops Initial Product Review and Recommendation Review with Account Brands Review with Value Analysis Team (e.g., CFO/Purchasing Administration) Review with Account Regulatory Review with Account Legal Department Review with External Experts (e.g., Key Account Leadership) No Review with Experts Account Buying Group Committee Reviews/ Approves your Product For Purchase Account Buying Group Rejects your Product For Purchase Formulary Approval Status Review Buying Exec Committee Challenges Decision Buying Exec Committee Does Not Challenge Decision Buying Exec Committee Rejects Decision Decision Not Passed Through Buying Exec Committee Seek Additional Input Approved the ordering process with Restrictions (e.g., Specific Procedures Only) Approved the ordering process without Restrictions Not Approved for ordering, But Placed on Contingencies / Pilot / Provisional Acceptance Not Approved for Ordering Stocking & Utilization Maintenance Plan your Stock in Account Do Not Stock in Account Follow Up Servicing Plan (Maintain Account Satisfaction) Stock in Account, only for contingent purposes

37 Sales Deployment Plan (Sales Force Positioning)

38 Sales Deployment Plan Sales Force Positioning Strategy Quantify territory growth opportunities and leverage points Identify richest targets Identify account characteristics that may explain likelihood to purchase your Product Identify account characteristics that may explain early adopters of late adopters of our products Ability to maximize marketing investment by segment Invest in richest targets Budget Allocations based on R.O.I. Organization targeting plan at a corporate and end user level

39 Key Performance Index Efficiency (Business Processes)

40 Key Performance Index Budget Planning Process key deliverables 1 Budget Allocation & ROI Justification 2 Budget Milestones/P&L Purpose & Use Prioritize spending to match company sales target goals Track allocations that impact the business (and do not impact the business) Purpose & Use Match budget with milestones to justify ROI Assign budget ownership to ensure accountability Consistent budget communication to ensure alignment

41 Key Performance Index Sales Performance Communication Process 1 Status Reports & Weekly Update Reports 2 Information Technology (CRM or Siebel) Purpose & Use Month end business status report to leadership team (template created) Friday status reports from team to US Sales Dir Commercial Packaging Purpose & Use Efficient use of targeting and capturing data Reports can be transmitted easier and more consistently Data can be easily stored, uncover, and deliver

42 Key Performance Index 2014 Budget Planning Process Step Process Responsibility Timing 1 Beginning year preliminary budget planning meeting (discuss strategy and priorities, realistic amounts, and planning process). Sales Finance End of 4qtr before budget planning year 2 Initial account budget plans worked on for account planning year (Managers create budget proposals that includes monthly numbers, programs, and activities. Plan budget meeting with team 3 Quarterly budget updates with team/dir (Review budget milestones utilizing previous spreadsheet 4 Collect Initial business plans worked on for business planning year 5 Finalized Account Business Plans presented to US Sales Director Sales Team US Sales Dir Commercial Packaging US Sales Dir Commercial Packaging Sales Team Sales Team Sales Team US Sales Dir Commercial Packaging End of 4qtr before budget planning year Quarterly Review December 10 before business planning year December 15 before business planning year

43 Key Performance Index Account/Sales Personnel Report Expectations Where to focus selling effort Prioritize schedule based on opportunities Act against the competition Build Account Plan (including action plans) Discuss effort, actions, plan with US Sales Director US Sales Dir Commercial Packaging Where to focus team s selling effort Prioritize Budget/Resources based on opportunities Act against the competition Discuss efforts, action, plan with VP of Commercial Packaging

44 Checkout my presentation on Influence & Negotiation! You can also checkout my background/work by clicking on the following links: Management-Consulting/

45 Andre Harrell AH2 & Beyond Consulting