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Managing thecustomersyou can’tafford to loseThis webinar will give you insightsand a tool to help you manage thecustomers ...
Peter Browne is Head of Strategy at Gordian Business, an international consulting firm focused on increasing productivity ...
Poll for WebinarPlease indicate % share of total revenuefrom your Top 10 accounts:            0% - 20%            20% - 40...
“Why should wemanage a selectnumber of keyaccounts in astrategic way?”
The New Normality                           Products & Services                       The Playing Field is almost level   ...
Strategic Account revenue trends100%                       40%                                60%Large customers % of     ...
Revenue distribution profile100%% of revenue        0%               20   40                   140                        ...
2009           US B$ 95.75       2011           US B$ 99.9No single account represented 10% or more   in revenue in 2008, ...
Agenda for Webinar  • Defining a portfolio of accounts    your company wants to serve  • Developing and implementing    re...
Who areyour mostimportantaccounts?
Choose some selection criteria  • Revenue  • Profitability  • Account potential  • Product mix  • Geography  • Prestige va...
Strategic Account Matrix     High                 Relational                       PartnershipR          Exceed Relations...
Account segmentation tool
Real Account Intimacy                Cost     Revenue
Agenda for Webinar  • Defining a portfolio of accounts    your company wants to serve  • Developing and implementing    re...
Managing Accounts in aRapidly Changing World         Transactions and Partnerships Transaction Selling               Partn...
Poll for WebinarDo you have a structuredapproach to identify your mostimportant clients?    Yes    No    Sort of – we do i...
Why are our customer’s inbusiness? • To make a profit… • Why?.. • To get a return on investment… Unless you are assisting ...
Strategic Relationships“     Too many people think only of their     own profit. But business opportunity     seldom knock...
Strategic Accounts – Questionsare the Answers!  Do we have a deep relationship with the account?  Do we know what drives...
Traditional AccountManagement Model              Account’s Internal Resources                                      Account...
21st Century AccountManagement Model               Account’s Primary Contact           Account Internal Resources         ...
80%of companies believe theydeliver a superiorcustomer experience……but only8%of their accounts agree             Bain & Co...
Value of Relationships“       Business relationships are becoming       a new form of wealth and       differentiation. Tw...
Dont measureyourself by whatyou haveaccomplished,but by what youshould haveaccomplishedwith your ability.     John Wooden
Value Disciplines     1. Redefine value with critical clients.     2. Create business processes that        deliver more v...
Common Mistakes          • Using revenue as the only            selection criteria          • Selecting too many accounts ...
www.gordianbusiness.com.au
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Managing the customers you can't afford to lose

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Presented by Peter Browne, Head of Strategy,
Gordian Business, Sydney, Australia

Competition is becoming more intense, products and services increasingly commoditised and buyers more knowledgeable. At the same time your largest customers want better quality and services at lower prices. As industries consolidate, your largest customers represent a growing proportion of your revenue and profit. So you cannot risk losing your largest accounts. To reduce this critical risk you need a disciplined approach to identify and manage the customers you can't afford to lose.

Participants of this webinar will receive a complimentary SEGMENTING ACCOUNTS TOOL which will show you how to manage your most important accounts in four different ways.

Peter Browne will show you how to engage with your key customers to enable your company to build barriers to entry against competitors, and retain and grow your most valuable customers.

Published in: Business
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Managing the customers you can't afford to lose

  1. 1. Managing thecustomersyou can’tafford to loseThis webinar will give you insightsand a tool to help you manage thecustomers that generate most ofyour revenue or most of your profit.
  2. 2. Peter Browne is Head of Strategy at Gordian Business, an international consulting firm focused on increasing productivity and profitability for global corporate clients.• 20 years in leadership roles in Australia and New Zealand• Experienced in the development and implementation of transformational strategy• Sales leadership managing some of the region’s largest and most complex companies• Has achieved significant revenue and profit growth by applying Strategic Account Management practices
  3. 3. Poll for WebinarPlease indicate % share of total revenuefrom your Top 10 accounts: 0% - 20% 20% - 40% 40% - 60% > 60% Don’t know
  4. 4. “Why should wemanage a selectnumber of keyaccounts in astrategic way?”
  5. 5. The New Normality Products & Services The Playing Field is almost level Competition Customers Intensifying Your team - Your Big getting bigger the Real Source of Firm Global Value-Add Online Pricing Pressures Increasingly knowledgeable buyers
  6. 6. Strategic Account revenue trends100% 40% 60%Large customers % of 70% 80% 90%total revenues 1970’s 1980’s 1990’s 2000’s Today
  7. 7. Revenue distribution profile100%% of revenue 0% 20 40 140 Number of customers
  8. 8. 2009 US B$ 95.75 2011 US B$ 99.9No single account represented 10% or more in revenue in 2008, 2009, 2010 or 2011
  9. 9. Agenda for Webinar • Defining a portfolio of accounts your company wants to serve • Developing and implementing relationship management strategies
  10. 10. Who areyour mostimportantaccounts?
  11. 11. Choose some selection criteria • Revenue • Profitability • Account potential • Product mix • Geography • Prestige value • Relationships • Cultural fit between companies • Fit with your strategy
  12. 12. Strategic Account Matrix  High Relational PartnershipR Exceed Relationship value Exceed account ExpectationsELATION Transactional TechnicalS Meet account Expectations Exceed Technical valueHIP Low High VALUE
  13. 13. Account segmentation tool
  14. 14. Real Account Intimacy Cost Revenue
  15. 15. Agenda for Webinar • Defining a portfolio of accounts your company wants to serve • Developing and implementing relationship management strategies
  16. 16. Managing Accounts in aRapidly Changing World Transactions and Partnerships Transaction Selling Partnership 1. Selling dominates learning. 1. Learning about the account is intense and dominates selling. 2. Talking dominates listening. 2. Listening dominates talking. 3. Persuading the account is product driven and benefits 3. Teaching the account is need focused. driven and problem focused. 4. The goal is to build buyers 4. The goal is to build and sales through persuasion, relationships through value, price, presence and terms. credibility, responsiveness and trust.
  17. 17. Poll for WebinarDo you have a structuredapproach to identify your mostimportant clients? Yes No Sort of – we do it ad hoc
  18. 18. Why are our customer’s inbusiness? • To make a profit… • Why?.. • To get a return on investment… Unless you are assisting them at the strategic level to achieve this outcome you are a commodity
  19. 19. Strategic Relationships“ Too many people think only of their own profit. But business opportunity seldom knocks on the door of self- centered people. ” No customer ever goes to a store merely to please the storekeeper. Kazuo Inamori
  20. 20. Strategic Accounts – Questionsare the Answers!  Do we have a deep relationship with the account?  Do we know what drives their buying decisions?  How are we investing to differentiate our value proposition with them?  Do we deliver the customer experience we intend to deliver – consistently? (do we even know?)  How is the “voice” of the customer heard within our organisation?  Do we have a streamlined process to refresh our value propositions every 3 months with our top clients?
  21. 21. Traditional AccountManagement Model Account’s Internal Resources Account Primary Contact Your Account Manager Your Internal Resources Communications are managed primarily Point-to-Point
  22. 22. 21st Century AccountManagement Model Account’s Primary Contact Account Internal Resources Your Internal Resources Your Account Manager Account’s Primary Contact and Your Account Manager Facilitate (vs. control) Cross-functional Dialogue
  23. 23. 80%of companies believe theydeliver a superiorcustomer experience……but only8%of their accounts agree Bain & Company
  24. 24. Value of Relationships“ Business relationships are becoming a new form of wealth and differentiation. Two companies can have similar products and cost structures, but the one with strong ” supplier relationships can lock out competitors. Michael Porter
  25. 25. Dont measureyourself by whatyou haveaccomplished,but by what youshould haveaccomplishedwith your ability. John Wooden
  26. 26. Value Disciplines 1. Redefine value with critical clients. 2. Create business processes that deliver more value. 3. Ensure relationships are strategic not operational. 4. Raise expectations beyond competitors’ reach.
  27. 27. Common Mistakes • Using revenue as the only selection criteria • Selecting too many accounts to manage strategically • Focussing on the short term • Focussing on your priorities rather than solving the customers problems • Analysis paralysis – trying to perfect your SAM program before implementing anything
  28. 28. www.gordianbusiness.com.au

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