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Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
Beth Rogers:  "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"
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Beth Rogers: "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"

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Beth Rogers: "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"

Beth Rogers: "How can you manage your Key Accounts, when they think they are managing you? - a model for developing business relationships"

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  • 1. How can you manage your key accounts, when they think they are managing you? Beth Rogers Athens Sales Management Forum September 21 st 2007
  • 2. How important is selling?
    • “ Everyone lives by selling something.”
            • Robert Louis Stevenson
    • “ Nothing happens until something is sold.”
            • Senior executive, telecoms industry
    • The key purpose of selling is to “create build and sustain mutually beneficial and profitable relationships through personal and organisational contact.”
            • UK National Sales Board
  • 3. The history of sales Go out and get the numbers!!!!!!!!!
  • 4. The sales function today
    • Understanding business strategy
    • Understanding purchasing strategy
    • Using analytical tools
        • specific to sales strategy
    Management of “top line” strategy
  • 5. Where does this leave marketing? “ We believe that a 20% gain in profits can be realized by companies that improve a poorly working marketing/sales relationship Into a better one.” Kotler, Rackham et al, 2006
  • 6. Integrated sales and marketing
    • Joint vision, values and goals
    • Teamwork
    • Mutual understanding
    • Shared information
    • Shared process management
  • 7. Managing business relationships Rogers B, 2007 Sales takes the lead Marketing takes the lead strategic co - operative tactical prospective Our value to the customer strategic co - operative tactical prospective High Low Low High Customer value to us
  • 8. Examples of strategic relationships
    • Parts manufacturers in automotive
    • Medical supplies company/ logistics
    • Steel company + top 17 customers
    • Oil company/tyre manufacturer
    • Ceramics supplier/steelworks
    • Logistics provider/mail order company
    • Facilities management company/laboratory services
    • IT supplier/bank
  • 9. Key account management is….
    • An approach which includes
    • developing long term relationships
    • with strategic customers
    • whose needs you understand in depth,
    • and for whom you develop a specific offer with a differential advantage over the offers of competitors...
    McDonald, Millman, Rogers, 1996
  • 10. It should work….
    • In a survey of 200 Fortune 1000 companies in 2005, most were able to raise revenues and profits by more than 20% on average through collaborative initiatives with customers (McKinsey).
  • 11. The trouble is….
    • What sort of customer justifies this level of investment?
      • “best” customers place 40% of unprofitable orders (SCEB)
      • suppliers who are not able to collaborate effectively lose money trying (McKinsey)
      • Supposedly “key” relationships do breakdown
  • 12. Managing risk in business relationships Rogers B, 2007 strategic co - operative tactical prospective Our value to the customer strategic co - operative tactical prospective High Low Low High Customer value to us
  • 13. The role of purchasing
    • “ Professionalism in purchasing,
    • with its ongoing external trading relationships,
    • is key to supporting and/or enhancing the brand;
    • sometimes this can be the only differentiating
    • factor between companies.”
    • CIPS – Chartered Institute
    • of Purchasing and Supply
  • 14. Strategic contribution of purchasing
    • Focus on the capability of a supplier is associated with improving value of purchasing function
    • 62% of companies procure most of their business needs from their top ten suppliers
    • However, diminishing returns set in if organizations try to set up strategic relationships with more than 5% of their supplier base.
    • Source: Performance Benchmarks: Procurement, 2006,
    • American Productivity and Quality Center
  • 15. Purchasing strategy Kraljic 1984 Leverage Bottleneck Strategic Non-critical Importance of purchase (profit impact) Complexity/risk in supply market
  • 16. Which means that….
    • You can only have a strategic business relationship with a customer if you, as a supplier, are in that strategic box
    • If you are in any of the other boxes, your choices are:
      • Reduce all overheads associated with the relationship and focus on streamlining processes so you are “easy to do business with”
      • Selectively invest to improve your position
  • 17. Cost control
    • The best-known brand in industrial chemicals set up a sub-branded e-commerce division to deal with price-driven customers. It concerned industry analysts at the time, but delivered good overall results, even in the short-term.
  • 18. Selective investment
    • As early as 1989, a French stationery company set out to help its largest customers to automate purchasing stationery
    • An oil company offered stable prices, stock control and just in time delivery in return for single sourcing
    • But where next?
  • 19. The nature of KAM
    • The development of value, such as joint new product development and/or process integration between the supplier and customer
    • The business management skills of the account manager
    • Long-term planning
    • Special organizational focus, including key account teams
  • 20. But….
    • Be sure your key account thinks you are strategic too!
    • Beware risks
      • Concentrating resources on small number of customers might increase market exposure – hence the need for portfolio management
    • Monitor closely – things change over time
    • Be distinct between “key” and “keep”
  • 21. Remember how business relationships break down:
    • Communication breakdown
    • Critical incidents
    • Change of contacts
    • Confidence fails
    • Complacency
    • Core product problems
    • Change in strategy
    • Contingency building
    • Cost issues
    • Collapse of status quo
  • 22. Strategic relationship momentum:
    • Mutual value and mutual problem-solving
      • Innovation/differentiation (product/process)
      • Cost reduction
    • Deliver it
    • Sustain it
    • Renew it

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