Key or strategic accounts are your most important clients. Not only are they your most important clients; they are also the ones that are at most risk of being wooed by your competition. For most companies, reducing prices to compete has become a staple sales strategy. However, this strategy seriously threatens the survival of the organization. This is why managing and developing key accounts is an essential skill to have, if we want to stay ahead of the competition!
We have to realize that, in today’s market place, price alone does not determine sales or profitability. It is essential for you to be able to differentiate yourself and your products and services in order to survive it this cut-throat environment. If you can’t compel, you won’t sell. If you can’t maintain your influence over your key clients, you may as well kiss them goodbye.
Our Knowledge Asia’s “Dynamic Key Accounts Management” training course will help you develop strategic account management techniques that ensure not only the protection of your existing clients from competitive attack, but, more significantly, build long and sustainable relationships resulting in excellent customer retention, improved sales, increasing margins and ongoing customer loyalty
Is your company having trouble driving more revenue from current clients?
Are you losing your current clients to competitors?
Watch this presentation to learn how to build B2B strategic account teams to generate 3X more revenue and profit than originally believed, within a short period of time.
B2B marketing is no longer a matter of delivering support tools and services to the sales organisation. The challenge for marketing is to take more of an independent role in B2B as a positioning driver. The loss of an extremely close, direct connection between sales and marketing also causes a loss in the alignment of sales and marketing investments for driving business. There isn’t necessarily sufficient marketing focus on generating revenue streams, as sales often ignores what will drive future revenue. B2B sales and marketing needs to re-align its objectives and priorities.
Key or strategic accounts are your most important clients. Not only are they your most important clients; they are also the ones that are at most risk of being wooed by your competition. For most companies, reducing prices to compete has become a staple sales strategy. However, this strategy seriously threatens the survival of the organization. This is why managing and developing key accounts is an essential skill to have, if we want to stay ahead of the competition!
We have to realize that, in today’s market place, price alone does not determine sales or profitability. It is essential for you to be able to differentiate yourself and your products and services in order to survive it this cut-throat environment. If you can’t compel, you won’t sell. If you can’t maintain your influence over your key clients, you may as well kiss them goodbye.
Our Knowledge Asia’s “Dynamic Key Accounts Management” training course will help you develop strategic account management techniques that ensure not only the protection of your existing clients from competitive attack, but, more significantly, build long and sustainable relationships resulting in excellent customer retention, improved sales, increasing margins and ongoing customer loyalty
Is your company having trouble driving more revenue from current clients?
Are you losing your current clients to competitors?
Watch this presentation to learn how to build B2B strategic account teams to generate 3X more revenue and profit than originally believed, within a short period of time.
B2B marketing is no longer a matter of delivering support tools and services to the sales organisation. The challenge for marketing is to take more of an independent role in B2B as a positioning driver. The loss of an extremely close, direct connection between sales and marketing also causes a loss in the alignment of sales and marketing investments for driving business. There isn’t necessarily sufficient marketing focus on generating revenue streams, as sales often ignores what will drive future revenue. B2B sales and marketing needs to re-align its objectives and priorities.
Managing and developing your accounts is the key to sustainable business. As such, sales people and account managers need to be able to create strategic business relationships with their clients in order for the clients to remain loyal to them and the company. Sadly, most sales people and account managers treat their relationship with their clients as transactional instead of strategic.
In this short “Nine-Grid Key Account Management” training course, we will focus on creating strategic business relationships with clients by understanding how to manage their time and activities to better serve their key accounts.
By the end of this training course, participants will be able to:
1. Select and rank their key accounts
2. Create strategies to handling the different levels of key accounts
3. Manage time and activities for each type of key account
In this SlideShare, Richardson discusses how decreasing customer loyalty, higher expectations, and constant competitive threats are making forecasted business from your best customers anything but a certainty. Richardson analyzes how to Driving Key Account Growth by Planning and Execution to Access the White Space.
Are you dependent on the Rigid frameworks or on the Heroes in your Organisation to institutionalise KAM process?
1
Key Account Planning & Management needs strategic planning and thinking.
2
DemandFarm brings best flexible and configurable frameworks and make this process easy
3
Get introduced to a framework which is best of both Automated tools and Human intelligence
Key account management vs Traditional sales - Quick comparison guide Hakeem Adebiyi
Whats the difference between KAM, this seems to be the most popular question on all KAM forums. Personally I think a better question is what skills are required to achieve the business goals of your organisation? However the popularity of the question and the debate it generates has led me to produce a quick comparison guide .
Sales Strategy Plan Powerpoint Presentation SlidesSlideTeam
Introducing Sales Strategy Plan Powerpoint Presentation Slides which allows you to position your products and services in a meaningful way. Mention specific steps that are needed to create a sales plan by utilizing marketing strategies PPT visuals. Understand how to plan for a successful product offering with the help of strategic market planning PowerPoint templates. Analyze the market to determine probable profit and revenue from it by utilizing market opportunity analysis PPT visuals. Discuss in detail four fundamentals of marketing strategy which are price, product, promotion, and place. Monitor progress and prepare for contingencies with the assistance of marketing mix PPT slide deck. Demonstrate the ways to attract your potential customers by using the business plan PPT layouts. Highlight the importance of sales planning and developing strategies in a business organization. Download our ready to use market strategic analysis PPT Presentation and succeed in getting potential customers and retaining them. https://bit.ly/3iSF6mg
What is Key Account Management? Key account management (KAM) defines full relationship between your business and the customers you are selling to. It describes the individual approach of sales people to their customers in order to create long everlasting business relationship.
Growing your business via strategic account management frameworkPiyush Poddar
This session will take you through our Account Management Practice and share some real-life case studies demonstrating how we hit target sales quota by 2-3x and achieved maximum strategic account objectives within the desired timeline.
We will look at various aspects of a successful Customer Account Management framework like
- Customer onboarding process
- Kickoff meetings
- Routine engagement health check-ins
- Invoicing and collections management
- Satisfaction surveys and testimonials management
- Complaint and grievances management
- Contract renewals and extensions.
- Opportunity exploration via researching client’s organisation, industry, seeking references, social media listening etc.
- Evangelizing client via social, digital marketing and event participations.
Key Account Management (KAM) is a tailored specification sales approach, that allows you to work more efficiently with chosen construction clients. Identifying your key construction clients allows you to work with their Architects, Engineers and Contractors, taking a more holistic approach to your specification strategy for your construction product.
How to Build a Killer Strategic Account Plan Avention
The Strategic Account Plan is a tool that helps salespeople be better positioned to take on new accounts and forge stronger relationships with existing ones. The plan contains critical information about the prospect that every sales rep should know before even thinking about making the initial phone call. Putting the information down in a concise, structured way helps the salesperson to focus on what is important about the account and how it aligns with your company’s offering. Having a plan can be that one step further, the edge over the competitor, the crucial piece of data that can close the deal. Simply put, the Strategic Account Plan is the blueprint of the sale.
The Strategic Account Plan should be almost a mini encyclopedia of the company. It should allow the salesperson to know the account inside and out. The plan must have all the important information about the company and its financials, competitors, technology, goals, and objectives. It must provide insights about recent development and drivers in the account and the industry. It is imperative that the plan contains extensive and accurate contact information. Moreover, the contacts ought to be structured in the proper hierarchical way so that the sales rep knows how to navigate through the list.
This is meant to provide interested parties of an example of what a KAP could look like. It is subject to change and is dependent to specific requirements of companies and their reflective market places, accounts, customers, and competition. It is merely an example.
If you chose to use it, it is at your own risk of success.
Managing and developing your accounts is the key to sustainable business. As such, sales people and account managers need to be able to create strategic business relationships with their clients in order for the clients to remain loyal to them and the company. Sadly, most sales people and account managers treat their relationship with their clients as transactional instead of strategic.
In this short “Nine-Grid Key Account Management” training course, we will focus on creating strategic business relationships with clients by understanding how to manage their time and activities to better serve their key accounts.
By the end of this training course, participants will be able to:
1. Select and rank their key accounts
2. Create strategies to handling the different levels of key accounts
3. Manage time and activities for each type of key account
In this SlideShare, Richardson discusses how decreasing customer loyalty, higher expectations, and constant competitive threats are making forecasted business from your best customers anything but a certainty. Richardson analyzes how to Driving Key Account Growth by Planning and Execution to Access the White Space.
Are you dependent on the Rigid frameworks or on the Heroes in your Organisation to institutionalise KAM process?
1
Key Account Planning & Management needs strategic planning and thinking.
2
DemandFarm brings best flexible and configurable frameworks and make this process easy
3
Get introduced to a framework which is best of both Automated tools and Human intelligence
Key account management vs Traditional sales - Quick comparison guide Hakeem Adebiyi
Whats the difference between KAM, this seems to be the most popular question on all KAM forums. Personally I think a better question is what skills are required to achieve the business goals of your organisation? However the popularity of the question and the debate it generates has led me to produce a quick comparison guide .
Sales Strategy Plan Powerpoint Presentation SlidesSlideTeam
Introducing Sales Strategy Plan Powerpoint Presentation Slides which allows you to position your products and services in a meaningful way. Mention specific steps that are needed to create a sales plan by utilizing marketing strategies PPT visuals. Understand how to plan for a successful product offering with the help of strategic market planning PowerPoint templates. Analyze the market to determine probable profit and revenue from it by utilizing market opportunity analysis PPT visuals. Discuss in detail four fundamentals of marketing strategy which are price, product, promotion, and place. Monitor progress and prepare for contingencies with the assistance of marketing mix PPT slide deck. Demonstrate the ways to attract your potential customers by using the business plan PPT layouts. Highlight the importance of sales planning and developing strategies in a business organization. Download our ready to use market strategic analysis PPT Presentation and succeed in getting potential customers and retaining them. https://bit.ly/3iSF6mg
What is Key Account Management? Key account management (KAM) defines full relationship between your business and the customers you are selling to. It describes the individual approach of sales people to their customers in order to create long everlasting business relationship.
Growing your business via strategic account management frameworkPiyush Poddar
This session will take you through our Account Management Practice and share some real-life case studies demonstrating how we hit target sales quota by 2-3x and achieved maximum strategic account objectives within the desired timeline.
We will look at various aspects of a successful Customer Account Management framework like
- Customer onboarding process
- Kickoff meetings
- Routine engagement health check-ins
- Invoicing and collections management
- Satisfaction surveys and testimonials management
- Complaint and grievances management
- Contract renewals and extensions.
- Opportunity exploration via researching client’s organisation, industry, seeking references, social media listening etc.
- Evangelizing client via social, digital marketing and event participations.
Key Account Management (KAM) is a tailored specification sales approach, that allows you to work more efficiently with chosen construction clients. Identifying your key construction clients allows you to work with their Architects, Engineers and Contractors, taking a more holistic approach to your specification strategy for your construction product.
How to Build a Killer Strategic Account Plan Avention
The Strategic Account Plan is a tool that helps salespeople be better positioned to take on new accounts and forge stronger relationships with existing ones. The plan contains critical information about the prospect that every sales rep should know before even thinking about making the initial phone call. Putting the information down in a concise, structured way helps the salesperson to focus on what is important about the account and how it aligns with your company’s offering. Having a plan can be that one step further, the edge over the competitor, the crucial piece of data that can close the deal. Simply put, the Strategic Account Plan is the blueprint of the sale.
The Strategic Account Plan should be almost a mini encyclopedia of the company. It should allow the salesperson to know the account inside and out. The plan must have all the important information about the company and its financials, competitors, technology, goals, and objectives. It must provide insights about recent development and drivers in the account and the industry. It is imperative that the plan contains extensive and accurate contact information. Moreover, the contacts ought to be structured in the proper hierarchical way so that the sales rep knows how to navigate through the list.
This is meant to provide interested parties of an example of what a KAP could look like. It is subject to change and is dependent to specific requirements of companies and their reflective market places, accounts, customers, and competition. It is merely an example.
If you chose to use it, it is at your own risk of success.
Demand Metric's Playbooks provide frameworks with links to actionable research, tools, templates and training to help organizations operationalize best practices for Marketing.
Use this step-by-step planning methodology and set of 20 premium tools and templates to help you develop and launch a successful online community.
To obtain this document, visit us at http://www.demandmetric.com/register
Key factor for the third party logistics market as the emerging economies are expected to increase the ecommerce industry in the next few years provides a growth opportunity to the third party logistics market.
Outsourcing Logistics: Findings from the 15th Annual Third Party Logistics Gl...eyefortransport
Presentations from eyefortransport’s 8th 3PL Summit & Chief Supply Chain Officer Forum in Brussels, November 2010. Visit www.3PLsummit.com/eu for further resources.
The Strategic Account Plan is designed to help the account management team effectively prepare and stay focused on the customer’s business objectives and goals to ensure they achieve the planned results, create a consistent experience for the customer, and ultimately identify how they can make a positive impact on the customer’s business.
This IDC study discusses the results of IDC's research of the sales operations function. This research provides a detailed evaluation and analysis of the best and emerging practices across sales operations teams at the technology industry's largest and best-performing companies. A framework is provided to help sales operations teams identify key weaknesses and gaps in their current structure. Also provided is IDC's guidance on the key components required to enable the transition to the next-generation sales operations team, including recommendations sales operations staffing levels.
"Sales costs are outpacing revenue growth, sales organizations are increasing in complexity, and IT buyers continue to indicate that sales reps are out of touch with their needs," says Michael Gerard, vice president of IDC's Sales Advisory Practice. "The sales operations team must be the key driver and catalyst for increased productivity across the sales organization, setting the vision for its future and maintaining the path toward this vision. However, significant organizational and structural changes are required with sales operations teams to achieve this goal. With the right strategy and individuals in place, sales operations teams have the potential to be the catalyst for establishing a best-in-class, agile sales organization."
The ultimate-blueprint-to-achieve-your-key-account-goals-in-2019-finalDemandFarm
The Ultimate Blueprint To Achieve Your Key Account Goals In 2019 (With Bonus Content)
Are you looking to increase your ROI and be a winner in the field of key account management?
1
Learn the strategies that will hold true for key account management in 2019. Stay at the top of your game.
2
Effectively increase your bottom line and create long-term value within your key accounts.
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Explore the exciting bonus content available inside on mistakes to stay clear of and definition of Key account management.
P G Punchihewa, G N Wikramanayake, D D Karunaratna (2003) Balanced Scorecard and its relationship to UMM IS Engineer, The Bulletin of the British Computer Society Sri Lanka Section 7-8 Oct
Times are hard out there. But whatever the realities
of our current economic climate, sales leaders are still
accountable for the results of the selling organization.
In this current do-more-with-less environment, what’s
a CSO to do?
Integrating Enterprise Risk Management (ERM) with Organizational Strategy
Strategic Account Management Presentation
1. Effective Strategic Account Management
Matthew Alleway
Customer
Stakeholders
Strategic
Customer Company
Account
Strategy Strategy
Management
Internal
Resources
2. Introduction: Strategic Account Management (SAM)
consequently a
Used to ensure
SAM is a strategic It provides a growing number of
the long term
approach means to develop companies have
development and
distinguishable and nurture made SAM part of
retention of
from account relationships with their core strategy
strategic
management major customers for customer
customers.
partnering
3. Effective Strategic Account Management Model
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
5 relationship
organisation
Developing
relationships
4. What is Strategic Account Management (SAM) ?
1
What is
SAM?
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
5. What is Strategic Account Management (SAM) ?
SAM is a management approach adopted by selling companies aimed at
building a portfolio of loyal strategic customers
By offering them on a long term basis, a service/product offering tailored
for their specific needs
it is a progression towards a form of ‘partnership’ or alliance with major
customers characterised by joint decision making and problem solving,
integrated business processes and collaborative working across buyer-
seller boundaries, described as a process of ‘relational development’.
1 2 3 4 5 6 7 8
6. What is Strategic Account Management (SAM) ?
SAM is not account management (many organisations frequently think they are
doing SAM when it is in fact account management)
Account management Strategic account management
Mostly managed as business as usual Managed for growth or change
Coordinated overview of account Holistic, helicopter, longer term view
Opportunity-focused understanding Deep understanding of customers business
One year plan Three to five year complete company-owned
business plans (not just a personal plan or
sales and marketing plan)
No investment or very little Likely to require investment in line with
strategy
Works within normal organisation Flexible, cross boundary sharing
Requires account manager Requires strategic account/business manager
1 2 3 4 5 6 7 8
7. Making the business case
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
8. Reasons to adopt SAM
Opportunities
Risk management
Ability to influence client lifetime value,
Customer complexity – retention means especially through solutions
understand the customers business and
supply chain More precise innovation through co-
creation with clients
Competitors are doing it, the client
expect it and request it in tenders Greater market understanding and
adaptiveness
Clients want a standard approach
especially from complex suppliers Reduced costs and increased value
through better resource allocation
1 2 3 4 5 6 7 8
9. Selecting and categorising customers
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting &
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
10. Selecting and categorising customers
The choice of strategic accounts is arguably one of the most important
Strategic customers must be aligned to an organisations strategic vision
Selection criteria should indentify the customer’s attractiveness in terms of
its potential for the organisation
Also necessary to have a good process for deselecting strategic customers
Optimum number of strategic accounts is 20-30
1 2 3 4 5 6 7 8
11. Strategic account portfolio
Supplier’s relative business strength as seen by the customer
High Low Star customers:
Strategic customers: These are the
The most innovative and strategic customer of
important projects High the future and are an
1
should be developed Investment for
2 5
with these customers -> growth
strategic investment. Strategic 4 Star
customers customers
3
attractiveness
Key account
Status customers: These Streamline
are the strategic 6
customers:
customers of the past, the Customers who
relationship with these 9 negotiate
customers is strong, aggressively and
Status Streamline 11
however the potential for 10 despite the significant
7 customers customers
future growth is low -> level of business the
proactive maintenance. profitability of the
8 account needs to be
carefully monitored ->
Low management for
cash.
Key customer spend
1 2 3 4 5 6 7 8
12. Stages of the relationship
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
13. Stages of the relationship
Goal
Simple, transactional relationship Interdependent relationships
Selling company
Selling Company Buying company
Buying Company
Selling Company
Selling company Buying company
Buying Company
Directors Directors
Finance Finance
Sales &ma rketing
Op erations
Di rections
Purchasing
Op erations
Service Service
Di rections
Strategic
Fi nance
Key
Fi nance
Key
SAM Customer Account Customer
Contact
Manager Operations Operations Contact
Marketing Marketing
Sales Sales
1 2 3 4 5 6 7 8
14. Developing relationships
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
15. Developing relationships
Most important attributes are trust and
integrity Senior management
The main task is developing effective
business relationships with senior customer
Middle management
decision makers and influencers – Per IBM
the most important aspect
The stronger the relationship, the less Operations transactions
threats will apply – Per IBM key to their
success during recession
Relationship development can be achieved
by mapping the people inside the customer
Xerox stated “It is vital to
who matter, and deciding with whom you identify one’s friends and
want to have a relationship with enemies, the decision-
makers and influencers,
and the customer’s
priorities”.
1 2 3 4 5 6 7 8
16. Developing relationships
Tribal Tribal Resources
Customer
Sa r ah At ki ns o n
Ph y l lis Sh e l ton
We n d y Cl ar k
De r ek Fe l ton
Ph i l Co l lins
Sw i nd e l ls
Ki ng s l ey
Ma n n i ng
Ma t the w
Anti-
Sponsor
0 0
Elisabeth Buggins
0 0
Ian Cummings
0 0 3
Peter Spilsbury
4
Paul Taylor
3 2
Peter Blythin
Sponsor/
Champion 4
Aamon Kelly
4 5
Steve Allan
Relationship Strength on scale 0 to 5
Relationship owner denoted by
1 2 3 4 5 6 7 8
17. Alignment in the organisation
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
18. Alignment in the organisation
Organisation Commitment
Relationships outside of the organisation depend on the quality of relationships
within it
Many of the benefits result from crossing boundaries, whether they are internal
or external in the customer organisation
Role of the strategic account manager
Strategic account manager entails the role of ‘orchestrating’ the firm’s resources
Transition to SAM
Use metrics to measure the success of the SAM program.
SAM is a marathon and not a sprint and firms should plan their SAM
implementation around the three important areas of change activity: 1. strategy
and planning, 2. organisation and culture, 3. process.
1 2 3 4 5 6 7 8
19. Alignment in the organisation
1 2 R ev isio n ‘Th e way w e d o
H igh
thin gs ’
1 1 Fu ll
in tegr atio n
1 0 B eco m in g
key cu s tom er
BEST -
cen tric PRA C TIC E
SAM
9 Eval uati on
Transitioning
8 Ge arin g u p D Change to
O PT IM I SIN G
6 R evie w SAM SAM SAM
in tro du ctio n 7 R ed efin ing
3 M akin g th e cas e 5 R oll ou t
fo r SAM
4 C apa bi lity C
2 U nd e rsta nd in g EM BED D ED
b ui ldin g
SA M
th e sco pe
1 Aw aren e ss
B
A I N TRO D U C IN G
SCOPING SAM SAM
1 2 3 4 5 6 7 8
20. Alignment in the organisation
Knowledge management
Firms with the most effective SAM make information management at the
customer level a core competence
Moving to a knowledge management approach has benefits for both the company
and the client.
For the company, client knowledge is retained and this is where an IT solution for
account management is required.
For the client they get the extra value of deeper knowledge from the supplier by mixing
with like minded experts.
1 2 3 4 5 6 7 8
21. Planning for strategic accounts
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
22. Planning for strategic accounts
Best practice companies adopt a collaborative approach with the customer,
developing long term plans ‘for’, and together with, their strategic accounts
IBM, ‘3’ Compass all suggested “developing an effective joint account plan with the
customer is critical to ensuring relationship lock-in, uncovering new business
development opportunities and driving rapid implementation
3M found that that short, sharp account business plans that “live” are best
Strategic marketing planning should in turn relate to the corporate strategic plan
Organisations that invest resources in detailed analysis of the needs and
processes of their strategic accounts perform much better in building long term
profitable relationships
The underpinnings of it all is really having a deep understanding of the customer, not
just the power politics, but what their marketplace is and where it is going, so that you
can genuinely add value
1 2 3 4 5 6 7 8
23. Planning for strategic accounts
1. Relationship overviews/Executive summary
Current initiatives with the
Current performance analysis Financial targets Planning assumptions
strategic account
2. Strategic account overview
Strategic accounts business environment (sector analysis, competitive situation, major challenges, strategic account SWOT
analysis)
3. Objectives and strategy
Indentify and prioritise the key Its position on the customer portfolio
Top-level strategy
opportunities with strategic account matrix
4. Customer alignment
Customers critical success factors (CSF) and supplier relative
Strategies to manage the relationship
performance
5. Relationship management
Customers decision-making unit Contact mapping (who talks to whom, state of relationship)
6. Implementation plan
Detailed tactics Budget Risks and contingencies
1 2 3 4 5 6 7 8
24. Risks and failures
1
What is SAM
8 2
Making the
Risks and
business
failures
Case
7 3
Planning for Effective Selecting and
strategic categorising
accounts SAM customers
6 4
Alignment in
Stages of the
the
relationship
organisation
5
Developing
relationships
1 2 3 4 5 6 7 8
25. Risks and failures
1. Relationships must be reciprocated and appropriate
Common mistake is to assume that the customer want to have close, partnered
relationships with their suppliers
Many companies do not do business on this basis at all; instead their purchasing
professionals reduce all supply decisions down to transactions based on trading off
quality with price, and flexing market power to obtain the best result.
2. Large customers are not always the best customers
Assumption that the biggest revenue earners are the most profitable is false, and that
great care must therefore be taken to before committing substantial resources to large
companies who demand great service at lower cost.
Research has found that often the most profitable customers are often just below
those that generate the largest revenue.
Important to stay close to strategic customers but reaching out to other customer
groups to reduce dependency on a few, and being locked into long term low
performance with unattractive customers.
1 2 3 4 5 6 7 8
26. Risks and failures
3. Misreading customer loyalty
if the supplier links their future strategy to the success of its customer, it creates a
strong dependency and consequently a risk on the customers future success or
failure.
This is with the added risk of a customer switching to another supplier, which can often
be part of the of the customers strategy.
Therefore it is important not to be over reliant on one customer and avoid the critical
error of believing that customer is a loyal partner.
1 2 3 4 5 6 7 8
27. Benefits Strategic Account Management
1. Strategic Account Management -> Take account management to
next level
2. Customers -> Service for life
Build long term strategic relationships with customers
Retention of strategic customers - more cost effective to retain customers
Spot new opportunities and generate new business
Increased consultancy provides the hook for increased downstream activities
3. Internal Integration / Consolidation
Break down internal boundaries and reduce silos
Use as part of a Company standard to manage consultancy client
relationships with major customers
Effectively manage and focus resources aligned to Company strategy