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Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
Wesley Johnston and Karl Hellman:  Assessing the strategic relationship - presented by smm connect.com
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Wesley Johnston and Karl Hellman: Assessing the strategic relationship - presented by smm connect.com

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All relationships are strategic if they present the opportunity to gain or defend large amounts of revenue. But strategic relationships vary widely in terms of how much you need to invest in them and …

All relationships are strategic if they present the opportunity to gain or defend large amounts of revenue. But strategic relationships vary widely in terms of how much you need to invest in them and in the nature of the interactions you need to create to exploit them.



This webinar will describe the distinct types of strategic relationships, how you can know which to pursue in any given case, and what you must do to fully exploit each type.



Who should attend:

* CEOs and CMOs will gain insights into how to increase their ROI with strategic accounts.
* Sales people will value the best practices and strategies for aligning investment with opportunity.


About Dr. Wesley J. Johnston

The Executive Director of the Center for Business and Industrial Marketing at Georgia State University (http://robinson.gsu.edu/marketing/Centers/CBIM/index.htm), Dr. Wesley Johnston is Professor of Marketing at Georgia State University. Dr. Johnston is one of the leading experts in B2B marketing and sales management. He is author of a textbook on Sales Management and is currently writing Strategic Selling Playbook (co-authored with Karl Hellman) based on his workshops and consulting practice in strategic selling.



About Karl Hellman

Karl Hellman is President of Resultrek, (www.resultrek.com) a global marketing consulting firm dedicated to creating great marketers and sales people. Karl is also Executive in Residence at the Center for Business and Industrial Marketing at Georgia State University. Karl's most recent book, The Customer Learning Curve, explains the power of The Customer Learning Curve through 24 "real life" marketer examples: scenarios readers can call their own. Karl is co-authoring Strategic Selling Playbook with Dr. Johnston.

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  • GBF003_032203_Tactical Marketing_v19
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  • GBF003_032203_Tactical Marketing_v19
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  • GBF003_032203_Tactical Marketing_v19
  • I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
  • I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
  • I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
  • I’d like to pick up Adrian’s comments about the Collapse of the Middle and what that means to you, your sales organizations, and your customers. Now we learned this morning that the average is about 29. So think to back to when you were 9 and you had your first sales job. You were probably assigned a geographic territory and you spent a couple of years in training learning about your products and the basics of selling. You probably reported to a Branch manager who reported to the District Manager who reported to a Region VP who reported to the VP of Sales. And that was how things worked in most organizations. There were good things about this model. Easy to absorb new people - lots of college new hires Easy to control at the top - Tommy Smith (IBM) Uniformity and esprit de corps Platform for building a strong culture Customers liked it too because…. they knew what to expect they could build a relationship There were also some things that were not so good. But it was expensive and often inflexible.
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    • 1. SMMConnect.com presents Assessing the Strategic Relationship: How to Dance the Dance Your Customer Wants Karl Hellman President, Resultrek Dr. Wesley Johnston Professor of Marketing, Georgia State University
    • 2. Recorded Webinar This program was presented for SMMConnect.com members as a live webinar. We invite you to view the full recorded webinar. Click Here to View Recording Download Handouts / Join Discussions The speakers invites you to join their discussion group at SMMConnect.com . Materials are posted for free download in the discussion group. Click Here to Join Group Register If you aren’t already a member of SMMConnect, you’ll register along the way. Registration is quick & free. Members are privacy-protected. Solicitation by vendors is prohibited.
    • 3. Click to Register SMMConnect.com is powered by VFTNetworks social learning platform Questions? Click here to ask. <ul><li>What is SMMConnect.com? </li></ul><ul><li>SMMConnect is a social learning community of sales and marketing professionals and thought leaders. </li></ul><ul><li>Members have free access to: </li></ul><ul><li>Webinars &amp; online workshops </li></ul><ul><li>Presentations, white papers &amp; resources posted by speakers and peers </li></ul><ul><li>Networking with fellow sales &amp; marketing professionals </li></ul><ul><li>Free tools to help in their work </li></ul><ul><ul><li>Social learning system &amp; collaborative learning platform </li></ul></ul><ul><ul><li>Goal-setting/action-planning software for learners </li></ul></ul><ul><ul><li>Track Measurable impacts of training </li></ul></ul><ul><ul><li>Web 2.0 online coaching system </li></ul></ul><ul><ul><li>Instant publishing &amp; learning content organization tools </li></ul></ul><ul><ul><li>Downloadable, easily editable eLearning Flash micro-games </li></ul></ul>
    • 4. About The Presenters Dr. Wesley J. Johnston The Executive Director of the Center for Business and Industrial Marketing at Georgia State University (http://robinson.gsu.edu/marketing/Centers/CBIM/index.htm), Dr. Wesley Johnston is Professor of Marketing at Georgia State University. Dr. Johnston is one of the leading experts in B2B marketing and sales management. He is author of a textbook on Sales Management and is currently writing Strategic Selling Playbook (co-authored with Karl Hellman) based on his workshops and consulting practice in strategic selling.   About Karl Hellman Karl Hellman is President of Resultrek, (www.resultrek.com) a global marketing consulting firm dedicated to creating great marketers and sales people. Karl is also Executive in Residence at the Center for Business and Industrial Marketing at Georgia State University. Karl&apos;s most recent book, The Customer Learning Curve, explains the power of The Customer Learning Curve through 24 &amp;quot;real life&amp;quot; marketer examples: scenarios readers can call their own. Karl is co-authoring Strategic Selling Playbook with Dr. Johnston.  
    • 5. Strategic Account Management: Assessing the Strategic Relationship A webinar for SMMConnect Wes Johnston Karl Hellman Center for Business and Industrial Marketing Georgia State University
    • 6. Increasingly, a greater percentage of revenue comes from the few, largest customers Strategic Relationships are becoming more important. % customers 5% 30% 65% % revenue 60% 10% 30%
    • 7. Increasingly, a greater percentage of revenue comes from the few, largest customers Strategic Relationships are becoming more important. % customers 5% 30% 65% % revenue 60% 10% 30% Does your firm rank customers by revenue? Indicate Yes or No
    • 8. And the importance of managing the profitability is even more critical: Strategic Relationships are becoming more important. % customers % profits 20% 70% 10% 225% 0% &lt;125%&gt;
    • 9. And the importance of managing the profitability is even more critical: Strategic Relationships are becoming more important. % customers % profits 20% 70% 10% 225% 0% &lt;125%&gt; Does your firm measure profit by customer? Indicate Yes or No
    • 10. And the preponderance of work, issues, and challenges in implementing strategic relationships, are internal. Strategic Relationships are becoming more important. % customers 5% 30% 65% % revenue 60% 10% 30% % challenges 25% 75% Customer issues Internal issues
    • 11. Webinar participant poll <ul><li>Do you have a strategic account program? </li></ul><ul><li>What was the growth of your strategic accounts in 2009 (over 2008)? </li></ul><ul><li>What was the growth of your average accounts 2009 (over 2008)? </li></ul><ul><li>What percentage of the challenge of executing your strategic account program is external/internal </li></ul>
    • 12. Reasons for key account programs <ul><li>1. </li></ul><ul><li>2. </li></ul><ul><li>3. </li></ul>
    • 13. Typical reasons for a SAM program <ul><li>Gain competitive advantage </li></ul><ul><li>Find additional sales opportunities </li></ul>Increase market share (38%) Change in business strategy (34%) More customization needed (26%) Ensure better client relationships (26%) Enter a new market (21%) Win larger deals (20%) Improve network of influential executives (6%) Develop sales competitive advantage (5%) Increase customer satisfaction (1%)
    • 14. Traditional geographic sales organization Consistent Inflexible Expensive Adapted from Value Migration by Adrian Slywotzky Low-cost Distribution Geographic Sales Organization Key Account Teams Sales
    • 15. Three powerful forces Low-cost Distribution Geographic Sales Organization Key Account Teams Sales Cost of Sales Three powerful forces have changed the optimal sales force forever. Namely: Skyrocking cost per sales call. The web. And Strategic Account Management.  Technology Strategic Account Management Field Visits Call Center Website $500+ $65 &lt; $5
    • 16. The Collapse of the Middle: Effect of Technology Indirect Telesales Direct Mail/ Catalogs Internet Low-cost Distribution Geographic Sales Organization Key Account Teams Sales Technology Cost of Sales
    • 17. The Rise of Strategic Account Management Low-cost Distribution Geographic Sales Organization Key Account Teams Key account teams Global coverage Industry focused channels Virtual team selling Sales Centralized Buying Industry Consolidation Global Sourcing
    • 18. Strategic Accounts pass through stages. Stage 1 Stage 2 Stage 3 Cost Value Price BAU Implications: Selection and Speed
    • 19. Did your program go through an implementation stage of cost (investment)exceeding revenue? Webinar participant poll Which stage are you in now? Implementation: Cost greater than price Price greater than cost and customer value greater than both Stage 1 Stage 2 Stage 3 Cost Value Price BAU Implications: Selection and Speed
    • 20. Key Account Differences
    • 21. Webinar participant poll What do customers want?
    • 22. What do customers want? <ul><li>What special advantages do customers want from key acct programs? </li></ul><ul><ul><li>Commitment of dedicated personnel (78%) </li></ul></ul><ul><ul><li>National or global coordinated approach (56%) </li></ul></ul><ul><ul><li>Access to skilled resources (41%) </li></ul></ul><ul><ul><li>Early knowledge and influence in your product development plans (39%) </li></ul></ul><ul><ul><li>Integration of customer information systems with yours (i.e., EDI) (39%) </li></ul></ul><ul><ul><li>Early access to new products and services (29%) </li></ul></ul><ul><ul><li>Co-development of new products and services (15%) </li></ul></ul><ul><ul><li>Sharing of development costs and pricing risks (12%) </li></ul></ul>
    • 23. How successful? <ul><li>How successful has your key account program been over the last year? </li></ul>36% Very successful 32% 14% 13% 5% Moderately successful Neutral Moderately unsuccessful Very unsuccessful
    • 24. Measuring Success <ul><li>How do you measure key account program success? </li></ul><ul><ul><li>Sales volume (80%) </li></ul></ul><ul><ul><li>Customer satisfaction (53%) </li></ul></ul><ul><ul><li>Profitability (45%) </li></ul></ul><ul><ul><li>Volume of recurring revenue stream (29%) </li></ul></ul><ul><ul><li>Incremental orders from existing accounts (22%) </li></ul></ul><ul><ul><li>Number of customers with strategic account agreements (11%) </li></ul></ul><ul><ul><li>Number of transactions/orders (6%) </li></ul></ul><ul><ul><li>Number of product units shipped (6%) </li></ul></ul><ul><ul><li>New product sales (2%) </li></ul></ul>
    • 25. Criteria to Identify Valuable Customers <ul><li>Revenues/Amount of supply </li></ul><ul><li>Contribution Margin </li></ul><ul><li>(Discounted) Cash Flows </li></ul><ul><li>Contribution to Capacity </li></ul><ul><li>Utilization </li></ul><ul><li>Innovation Effects </li></ul><ul><li>Spillover Effects </li></ul><ul><li>Cooperation Effects </li></ul><ul><li>Informational Effects </li></ul>Quantitative criteria (“hard facts”) Qualitative criteria (“soft facts”)
    • 26. Scoring Model to Evaluate Customer Attraction (Example) Points 1 2 3 4 5 Score (Maximum total score: 30) Customer‘s purchasing volume X Potential growth of purchasing volume X Pricing X Payments X Potential for gaining contribution margins X Overall loyalty towards suppliers X Total score 16 = 53% (relative to max. total score) Source: Köhler1999, p. 346 Criteria 3 2 1 3 3 4
    • 27. Scoring Model to Evaluate Supplier‘s Position (Example) Points 1 2 3 4 5 Score (Maximum total score 30) Quota of customer‘ supplies X Duration of relationship X Continuity of customer‘s orders X Customer satisfaction with supplies X Own company‘s image X Contribution margin X Total score 22 = 73% (relative to max. total score) Source: Köhler1999, p. 345 Criteria 4 3 4 5 4 2
    • 28. Portfolio of Business Relations F C A H E B I G D Importance of the customer for the supplier Importance of the supplier for the customer source: Plinke 1997, p. 149
    • 29. Customer Portfolio low middle high high middle low Competitive position Customer attraction Source: Schleppegrell 1987, S. 32
    • 30. Customer Portfolio Supplier‘s position Customer attraction Source: Homburg/Schneider/Schäfer 2001, S. 181 Question marks Stars Take along Return + + - - Key decision: Big Step or Out Hold or extend position Hold position Selective retreat
    • 31. The value hierarchy Top management Middle management Purchasing management Profit/productivity Price/performance Problem/solution
    • 32. Moving the relationship up or down Buyer’s Understanding of the Value proposition Good Vague Satisfaction with current supplier Good Poor Replacement Repurchase Innovation Expansion
    • 33. Where is the relationship? Investment by Customer Investment by Supplier Repurchase Expansion Innovation Replacement Customer service Competitive intelligence Business development LVF CXO support
    • 34. Where is the relationship? Investment by Customer Investment by Supplier Transactional Marketing Consultative Marketing Enterprise Marketing Strip cost Create new value Create extraordinary value RISK competitive vulnerability WASTE over resourcing
    • 35. Relationship Assessment Questionnaire
    • 36. Situation Perhaps our vision of the ultimate Strategic Account Relationship is one with extensive cooperation in which the customer considers us a valued, trusted member of their most important strategic initiative teams. But as exciting as these kinds of complex, interdependent relationships are, we need to keep our feet on the ground , and define the relationship that is mutually profitable and appropriate. There are different levels of strategic relationships and presents a tools for determining where you are and where you can go in the strategic account relationship. Relationship Assessment
    • 37. There are four types of strategic relationships along a continuum of simple to complex, arm’s length to interdependent. Investment by Supplier Solve problems, increase share of wallet and premium pricing Invest in creating mutual strategic advantages—all topics, all levels There are four types of strategic relationships along a continuum of simple to complex, arm’s length to interdependent. Complexity and interdependence Simple, arm’s length Complex, interdependent Invest to reduce costs, increase margins Invest in service augmentations Transactional Vendor Credible source Problem solver Trusted advisor
    • 38. The Relationship Assessment tool. <ul><li>The Center for Business and Industrial Marketing at Georgia State University uses a Relationship Assessment Survey to help clients diagnose their current status and uncover opportunities for improved performance. </li></ul><ul><li>The survey consists of 32 questions for members of the client’s internal account team to answer about their relationship with the Strategic Account. </li></ul><ul><li>All questions have four possible answers, lettered a through d. </li></ul><ul><ul><li>An answer of a corresponds to a transactional relationship. </li></ul></ul><ul><ul><li>An answer of b corresponds to a credible source relationship. </li></ul></ul><ul><ul><li>An answer of c corresponds to problem solver . </li></ul></ul><ul><ul><li>And d corresponds to trusted advisor . </li></ul></ul>
    • 39. The Relationship Assessment tool. The survey’s 32 questions break down into three sections: Section One: Fifteen questions that assess the Customer’s View (how the team members think their customer views their company.) Two example questions illustrate how the survey helps you assess and label your strategic relationships: Section Two: Eleven questions that measure the vendor’s Investment in the relationship. (What the vendor is or is not doing, affect the relationship.) An example question illustrate how the survey helps you assess your investment: Section Three measures the Potential of the relationship to evolve.
    • 40. The Relationship Assessment tool questions. 1 You generally first learn about the project when you are asked to respond to a formal evaluation process from the Purchasing Department. You typically know about the project in advance from the customer&apos;s management, but you must respond to a formal evaluation process. You generally help write or influence the criteria in a formal evaluation process with the customer so that it gives you a competitive advantage. You are given the opportunity to offer a solution in lieu of a formal evaluation or purchasing process. When the customer is initiating a large, highly visible project which potentially involves your products/services, how and when do you get involved? A. B. C. D. transactional credible source problem solver . trusted advisor . Examples of questions from section 1—The Customer’s view of the relationship
    • 41. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Examples of questions from section 1—The Customer’s view of the relationship 4 The customer will often share your ideas and proposals with other suppliers to get the best price. The customer will occasionally act on your ideas, but will protect your contribution. The customer often acts on your ideas and proposals and will publicly recognize your contribution. The customer seeks out your ideas, publicly recognizes your contribution, and ensures that you receive all related business. When you introduce new ideas or unsolicited proposals… A. B. C. D. A. B. C. D.
    • 42. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Examples of questions from section 1—The Customer’s view of the relationship 11 You read about it in a publicly available forum. The customer often shares the plan with you before it is final so that you can validate information directly related to your products/services. The customer includes you in the planning process for projects in those areas related to your products/services. The customer includes you in their strategic planning process. When it comes to the customer&apos;s planning for the future… A. B. C. D. A. B. C. D.
    • 43. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Examples of questions from section 2—Your Investment in the relationship 17 You are restricted to the Purchasing Department. You focus all of your time in a single function, department, or location. You regularly cross multiple functions or departments in the customer&apos;s business. You cover the entire enterprise and have provided solutions at multiple locations. How broadly have you penetrated the customer? A. B. C. D. A. B. C. D.
    • 44. The Relationship Assessment tool questions. Examples of questions from section 2—Your Investment in the relationship 19 You know the customer&apos;s primary lines of business. You know the competitive advantages of the customer&apos;s products and their major markets and/or customers. You can explain the performance measurements that corporate and/or business division executives use to measure the success of their business. You understand the customer&apos;s business well enough to anticipate how the customer will react to events and changes in business conditions. How well do you know your customer&apos;s business? A. B. C. D. A. B. C. D. transactional credible source problem solver . trusted advisor .
    • 45. The Relationship Assessment tool questions. transactional credible source problem solver . trusted advisor . Example –a question from section 3—The Potential in the relationship 28 The customer wants many suppliers and those that can be easily replaced. The customer has a broad range of suppliers and evaluates each on a project basis. The customer has a few &amp;quot;preferred&amp;quot; suppliers who are chosen based on the overall business value provided. The customer has formed relationships with suppliers so close that they have become interdependent. What is the customer&apos;s attitude towards suppliers? A. B. C. D. A. B. C. D.
    • 46. <ul><li>Compiling your answers: </li></ul><ul><li>Teams give themselves 1 point if they answer a, 2 for b, 3 for c, and four for d. They then calculate their average score for each section. </li></ul><ul><li>Then they plot their average score for each section on the graph below: </li></ul><ul><li>The team plots an (x,y) point as follows: </li></ul><ul><ul><li>their average score for Section One— Customer’s View is the vertical (y-) value. </li></ul></ul><ul><ul><li>their average score for Section Two— Your Investment is the horizontal (x-) value. </li></ul></ul><ul><li>A second point is posted along the diagonal as follows: </li></ul><ul><ul><li>their average score for Section Three— Potential is the value along the diagonal. </li></ul></ul>
    • 47. 4 3 2 1 4 3 2 1 Trusted advisor Problem solver Credible Source Transactional vendor Resources overcommitted Customer at risk Y-axis Customer’s perception X-axis Vendor’s investment Diagonal-axis Relationship’s potential Graph your answers:
    • 48. Your status mapped onto the customer’s buying process Assess the Problem /Opportunity Define objectives Initiate a project Evaluate products Prove the concept Negotiate and sign contract Implement Measure results Trusted advisor Problem solver Credible source Vendor The Customer’s decision process
    • 49. Webinar participant poll <ul><li>How do the competencies of SAM executives differ from avg acct execs? </li></ul>
    • 50. Competency Differences <ul><li>How do the characteristics and competencies required of your strategic account managers differ from your “regular” field sales person? </li></ul><ul><ul><li>Broader business experience (53%) </li></ul></ul><ul><ul><li>More strategically oriented (39%) </li></ul></ul><ul><ul><li>More senior executive sales experience (34%) </li></ul></ul><ul><ul><li>Must work well with many decision-makers (9%) </li></ul></ul><ul><ul><li>No difference (6%) </li></ul></ul><ul><ul><li>Higher quota (3%) </li></ul></ul><ul><ul><li>Must be more adaptable to changing market (1%) </li></ul></ul>
    • 51. Roles of Key Account Managers <ul><li>What roles do your key account managers assume in their relationships with customers? </li></ul><ul><ul><li>Rainmaker: stimulates customer interest in key account programs (55%) </li></ul></ul><ul><ul><li>Team Captain: marshals and coordinates company resources for key account programs (76%) </li></ul></ul><ul><ul><li>Coach: advises and oversees sales organization’s execution of key account programs (52%) </li></ul></ul><ul><ul><li>Strategist: establishes general key account program policies, but does not execute them (33%) </li></ul></ul><ul><ul><li>Consultant: assists customers directly with their strategy development (3%) </li></ul></ul>
    • 52. Strategic Account Manager Training <ul><li>Is the training for strategic account managers different from that of “regular” salespeople? </li></ul>Differences in training: - More complete sales skills training - Customization training - More in-depth business training 28% Training differs 34% 38% Same training No training provided
    • 53. Do you assess your SAM executives? <ul><li>A Yes, we have job specific assessments </li></ul><ul><li>B No, our assessments are general “personality” tests </li></ul><ul><li>C No, we don’t assess—but are interested in doing so </li></ul><ul><li>D No, not us </li></ul><ul><li>E Other, comments </li></ul>
    • 54. Assessment is one of the keys to success <ul><li>A lot of variation in the design and management of “account management programs” </li></ul><ul><li>Success varies depending on a number of factors </li></ul><ul><ul><ul><li>It has to be more than a sales initiative </li></ul></ul></ul><ul><ul><ul><li>Alignment and commitment has to permeate the company </li></ul></ul></ul><ul><ul><ul><li>Selection criteria for accounts is critical </li></ul></ul></ul><ul><ul><ul><li>Programs have to be carefully designed and supported </li></ul></ul></ul><ul><ul><ul><li>Multi-functional and multi-level touch points are necessary </li></ul></ul></ul><ul><ul><ul><li>Metrics and communication of results are important </li></ul></ul></ul><ul><ul><ul><ul><li>Value received/Value given </li></ul></ul></ul></ul><ul><ul><ul><li>Technology can help, but be careful </li></ul></ul></ul><ul><ul><li>Need to assess skills of sales executives and support with specific training. </li></ul></ul>
    • 55. Dr. Wesley Johnston Director, CBIM [email_address] (404) 413-7851 Karl Hellman Executive in Residence, CBIM [email_address] 678 793 7343 <ul><li>Contact CBIM: </li></ul><ul><ul><li>To discuss Strategic Account Management Program best practices </li></ul></ul><ul><ul><li>To ask questions about your Strategic Account Management Program </li></ul></ul><ul><ul><li>To learn about the Center’s Relationship Assessment Questionnaire </li></ul></ul><ul><ul><li>To learn about the Center’s Assessment tools and process. </li></ul></ul>

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