Price Objection … Price Sensitivity
Your PRICE is
too HIGH !
We are beaten
on PRICE !
What if you are the
Cannot match on price 55% - 60% 40% - 50%
& not flexible on contract terms
Other reason 45% - 40% 60% - 50%
perhaps such as -
1] you didn't manage situation well I don’t think you
2] you are not sure why you lost know your solution
WHAT DO well; or You didn’t
3] non-business related needs
THESE MEAN? convince me
4] no body chemistry enough; or You
talk only business
VALUE of TIME- the value of ONE year!
Close your eyes and think about
it for 1 minute !!!!!
….. ask a sales executive who MISSED his budget
Building Value Before The Sale
Demonstrates our interest in
serving their needs.
Building Value During The Sale
Don’t leave your
meeting or your
an acceptable what the
commitment from customer
them toward the next is not telling
course of action.
Close the plan
Building Value During The Sale
Knowledgeable Professional with Integrity ?
Never ever bad-mouth competitors;
just say we don’t talk about others
Building Value During The Sale
Over-deliver is better
The VALUE of TIME -- the value of each day!
Close your eyes and think hard
about it for 1 minute.
……… ask yourself, now sitting in this room!
YES, We Beat Competition
YOUR YOU YOUR
It Takes A Lot Of Work To Beat You.
Key Account Management (KAM)
means the systematic analysis, selection
and management of actual and potential
strategically important customers to
achieve comparative competitive advantage
for both parties concerned.
Account Management has become a crucial issue for
many companies. Key account management is also
known as strategic account management.
Driven by the Pareto belief of 80/20 rule –
80% of current/potential revenue
comes from 20% of customers;
These 20% customers must be treated differently or
require more of our attention from other customers.
We strive to answer these questions
Should we have a key account program?
How many customers should we include in the key
How we decide which customers to include in the key
Should all of these key accounts have equivalent
What value should a key account program offer our
Or these questions
How should we organize to address key accounts?
How should key account management interface with the
sales force and other organizational units?
How should we recruit, select, train and retain our key
How should we compensate our key account managers?
What is the appropriate role for key account teams?
What is the best way to develop strategy for our
individual key accounts?
What systems and process should we put
in place to manage our key accounts?
Good Account Management is Your
Bridge to Growth and Expansion
Account Management is a Strategy
Execution KEY ACCOUNT STRATEGY
Opportunities & Threats
Key account fundamentals
Key Account Key account analysis
Insight Fulfillment order process
Customer value satisfaction
Performance & Objectives
Competitive Strategy & Action Plans Market Supply
Insight Company-to-customer support Insight
Resources & Outsourcing
Best Practice Account Management Implementation
KEY ACCOUNT STRATEGY
Customization Pricing Strap
Development Supply Chain
Performance Monitoring & Adaptive Change
Identify accounts you can grow relationship with
Steps to optimize
our ability to secure
and grow business
profitability, and to
Like all good
works on a Your customers
number of Our company
& analyse Operational
Plan & realise KAM
Integrate & organise
strategy, structure & culture
Operational KAM for Account Manager and team
SOLUTIONS Understand the competence and Understand how we
Understand this make-up of the team that will be are working with this
customer’s needed for this account. Bring team account today. Agree
current and how the team should
together and ensure they are equipped
be organised sell
potential usage and communicate.
and competitive Establish clear
situation. Design processes, protocols
and deliver the and guidelines.
in the right way
Understand the key
STRATEGIES performance indicators
Understand this for this account.
customer’s Ensure they are
business and set measured and the
multi-level results used to
objectives and strengthen relationship
an overall strategy
KAM for senior management
2. SOLUTIONS • How can we ensure we are giving our 4. MANAGEMENT
• How do we integrate key account Managers the • What is the best way
the special development they need? for us to manage our
requirements we • What are the broader people issues key Account
make to our K.A.s into related to the challenges of KAM? managers?
our standard product recruitment, training, incentives, • What are the
or solution career planning etc.. organizational and
development. process implications
• To what extent are we of this KAM?
ready to adjust and
widen our offerings
and solutions to key
account’s requests? 5. MEASUREMENT
• How do we gather
1. STRATEGIES our key account
• What part should information quickly
the Key Account and accurately?
play in our overall • What does top
strategy? management need
• What makes this to know in order to
customer a key achieve excellence
account? in strategic account
“The way we do things
Understand the products and services that
are being offered to the customer
Analyse the customer’s requirements
Analyse the competitive strengths of your
products and services
Identify possible improvements
Identify possible future requirements that
the customer might have in the future (possibly not
yet recognised by the customer themselves)
Understanding customer better with
Account Management solution
WHAT Platinum Gold Silver Lead
Loyalty High Medium Medium Low
Importance Significant High Moderate Low
Strong, Good, Weak or
Offensive Defensive Unknown
Potential Very High High Moderate Explore
Penetration Opportunity Low
Tier your accounts
Platinum - Top 20 customers
Gold – Next top 30 customers
Silver – Next top 50 customers
Lead -- Explore or leave
Require High Management
Develop Corporate Level
Acquisition and Fulfillment Team
Based Account Management
Your Long Term Growth Producers
Form core and wider
Implement and review
and strategy agreed
analyse current team
Maximum Next 30 Customers
Moderate Management Focus
Acquisition and Fulfillment Team Account
Build Gold Customers to Platinum
Silver – Next 50 Customers maximum
Low Management concentration
Small acquisition and fulfillment team account
Target Silver for Future Gold
Lead / Dormant/Explore
Very low sales or management focus
Order taking accounts
For Each Account Manager:
No more than 25 accounts total
No more than 5 Platinum
20 Combined total Platinum / Gold /
Each Account should have
Customer Organization Chart
Quality and quantity of targeted Customer Calls to
build relationships at multiple customer
Each Customer Call should include
Message of Value Proposition
Timing and Sequence of opportunity
Linkage to Trane Business Solutions and Customer Relationship
Account Maturity Path guide
Requirements: -Full Account Team Present
-Completed Account Planner
Three Step Process
Account overview lead by the
account team leader
Strengthening the Plan
Account Review Lead by the Account Team Manager
Overview of Account Planner 30 Minutes
Customer Information Section
Review Customer Organization Chart
Overview of Customer Profile Section
Account Goals and Programs
Strategies and Tactics
Clarifying Questions Lead by the Account Review Team
Clarify Content 15 Minutes
Led by Account Manager
Clarify content presented in the Account Planner
If it is NOT in the Account Planner it does NOT exist
Everyone on the team has opportunity to ask questions
Not challenges to the plan
Not personal confrontations and personal criticisms
Strengthening the Plan Lead by the Sales Manager
Strengthen the Account Plan 15 Minutes
Not a personal challenge
I see a weakness in the plan and
the weakness is…..
If it is not in the plan – it does not exist
Create the account action plan
Celebrate Completion of the Session with
a Team Building Event!
ANY QUESTIONS ?
if not, ANY COMMENTS ?
IF not, we go to the next slide !
Thank You for your Order.
Do Great Things
and Have Fun!