Strategic Account Planning - What Separates the GREAT from the WEAK
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This document discusses best practices for strategic account planning. It begins by noting that account managers who focus on planning outperform those who do not. While most companies see planning as important, over half say their plans need improvement. The document then examines what is often broken with planning, such as lack of management support, siloed teams, and plans that do not reflect customer goals. It provides recommendations for improving planning, including prioritizing the right accounts, using common tools and language, conducting reviews to drive changes, and collaborating internally and with customers. Key elements of an effective plan are understanding customer goals, identifying relationships, using scorecards from the customer perspective, developing collaborative roadmaps, and measuring success.
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Strategic Account Planning - What Separates the GREAT from the WEAK
- 1. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Strategic Account Planning – What separates the GREAT from the rest The Last Crusade of Account Planning
- 2. 2 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Johnson & Johnson Samsung Electronics Microsoft Cisco Systems Lukoil M&T Bank Ferrovial Sompo Japan Insurance Aviva AstraZeneca Unilever Cemex Siam Commercial Bank Prudential CIC Group Bank Mandiri DnB NOR Devon Energy Sacyr Vallehermoso Barrick Gold Metalurgica Gerdau State Bank of India Group Henderson Land HDFC-Housing Devel PICC Property & Casualty MAN Accounts by Revenue in Millions
- 3. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Top 1% Next 4% Next 15% Bottom 80% Today’s Language Lesson Global Account
- 4. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Sales Executive Council Survey
- 5. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Top 1% Next 4% Next 15% Bottom 80% 800 Customers 29% Dollars 200 Customers 43% Dollars 3,000 Customers 21% Dollars 16,000 Customers 7% Dollars Customers = 20,000 Total Revenue = $ 700,000,000 Typical Customer Segmentation
- 6. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Today’s Agenda – Great Strategic Account Planning What does ‘Good’ like and is it worth the bother? •Why should we bother? It’s too Hard! •Ok, so I should do it, but it feels broken •How do I fix it and make it good, great?
- 7. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL
- 8. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Strategic Suppliers have Advantages Forrester Research
- 9. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Strategic Account Revenue Growth Year over Year 12% 14% 10% 6% 8% 7% 0% 5% 10% 15% 2009 2011 2013 Strategic Accounts Other Accounts SAMA – 2014 Key Trends Report
- 10. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL From the Buyers Perspective – How many Strategic Vendors/Partners do you have? 22% 22% 17% 13% 19% 1 to 5 5 to 10 10 to 15 15 to 20 More than 20 Forrester Research: Q3 2012 Global Sourcing & Vendor Management Priorities Survey 81% of Companies Have 20 or less
- 11. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL
- 12. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Account Managers say “Percentage of My customers that say we are a strategic partner” 10% 12% 61% 17% 1% to 25% 26% to 50% 51% to 99% 100%
- 13. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Effectivity of Selling to Existing Customers Source: CSO Insights Sales Performance Survey
- 14. Business Value of Effective Strategic Account Planning & Management Relationship Win Rate Pct of AcctMgrs Making Quota Level 5 – Trusted Partner 54% 70% Level 4 – Strategic Contributor 51% 66% Level 3 – Solutions Consultant 50% 63% Level 2 – Preferred Supplier 48% 62% Level 1 – Approved Vendor 44% 57% Source: CSO Insights Sales Performance Survey Average Revegy Proprietary & Confidential
- 15. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Today’s Agenda – Great Strategic Account Planning What does ‘Good’ like and is it worth the bother? •Why should we bother? It’s too Hard! •Ok, so I should do it, but it feels broken •How do I fix it and make it good, great?
- 16. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Good vs. Great 55.6% of high performing reps reported they regularly focus on account planning versus 41.2% of poor performers. 1 SiriusDecisions Research
- 17. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Importance/Quality of Account Planning Source: CSO Insights 2012 Sales Performance Survey 88% 12% Importance Important Not Important 8.3% 36.8% 54.9% Account Plan Quality Exceeds Expectations Adequate Needs Improvement
- 18. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Importance/Quality of Account Planning Source: CSO Insights 2012 Sales Performance Survey 88% 12% Importance Important Not Important 8.3% 36.8% 54.9% Account Plan Quality Exceeds Expectations Adequate Needs Improvement Percentage of Account Plans Effectively Executed 11% SAMA Global Survey 322 Strategic Account Managers/Executives
- 19. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Impact of Effective Account Planning 42.9% 48.1% 60.4% Poor Adequate Good Win Rate Source: CSO Insights 2012 Sales Performance Survey 84.4% 90.8% 99.0% Poor Adequate Good Corporate % of Quota
- 20. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What’s Broken in Account Planning? - The Management View
- 21. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What’s Broken in Account Planning? - The Plan Itself
- 22. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Company Background Executive Summary Current Financial Situation Organization Chart Historical Product Spend Buying Centers
- 23. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL
- 24. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What’s Broken in Account Planning? - The Team
- 25. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What’s Broken in Account Planning? - The Customer
- 26. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What’s Broken in Account Planning?
- 27. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Today’s Agenda – Great Strategic Account Planning What does ‘Good’ like and is it worth the bother? •Why should we bother? It’s too Hard! •Ok, so I should do it, but it feels broken •How do I fix it and make it good, great?
- 28. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Items that correlate to Strategic Account Profitability SAMA – 2014 Key Trends Report
- 29. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Account Planning – Process Best Practices Critical Success Factor - Process Value 1. Prioritize/Segment Accounts Focus on best potential accounts 2. Common Process, Tools & Language Drive Scalability 3. Account Reviews/Coaching Drive behavior change, measure improvements over time 4. Continuous Collaboration Customer and Team Alignment
- 30. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Step 1 - Begin with the End in Mind What is your objective? - Retention - Company Revenue Growth - Vertical Penetration - Competitive Differentiation 3
- 31. 31 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Johnson & Johnson Samsung Electronics Microsoft Cisco Systems Lukoil M&T Bank Ferrovial Sompo Japan Insurance Aviva AstraZeneca Unilever Cemex Siam Commercial Bank Prudential CIC Group Bank Mandiri DnB NOR Devon Energy Sacyr Vallehermoso Barrick Gold Metalurgica Gerdau State Bank of India Group Henderson Land HDFC-Housing Devel PICC Property & Casualty MAN Tier 1 Accounts Tier 2 Accounts
- 32. Step 2 – Choose Wisely, Grasshopper! Relationship & Fit PotentialValue Relationship & Fit - Current Level of Trust - Key Stakeholder Relationships - Strategic Fit of Two Companies Potential Value - Business Growth - Past / Current Revenue Size - Potential Opportunities 2014 Current Trends Report - SAMA
- 33. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Step 3 – If you don’t know where you are going, any road will get you there
- 34. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Common Account Planning Process with Coaching
- 35. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL 90% 3-5 Years 60% 39% Revenue Performance Top Performers Under Performers 46% Today CxO’s Plan to Collaborate More CEO Says Collaboration is a Top Priority Step 4 - Collaborate IBM 2014 CEO Survey
- 36. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL IBM CEO Survey on Customer Collaboration “You have to ‘marry with your Customers and share experiences, Good or bad, to gain trust” CEO Major Professional Services Firm “In the next few years we want To build deep, strategic relationships With our customers, enterprise- To-enterprise relationships where The ‘customer is for life.’” Paul Graham, CEO, DHL Supply Chain, Singapore
- 37. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Top Internal Barriers to Strategic Account Development 16% 18% 19% 21% 34% 53% 54% Corp and SAM Strategy Misaligned Lack of Senior Executive Support Internal Collaboration Challenges Inadequate Corporate Support Global vs. Local Conflict Too Much Short Term Focus Internal Silo Conflict
- 38. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Collaborate Internally – Especially with Marketing 3 Account status Account opportunities Account objectives Account strategy Marketing adds…Sales has… History, customer feedback, product/service portfolio Data on optimal combinations, propensity to buy Prioritization of accounts and program development Programs to support goal attainment
- 39. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL But what goes in the plan?
- 40. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Account Plan – Best Practice Elements Critical Success Factors – Account Plan Elements 1. Understand the Customers’ Goals and how they measure success 2. Identify and Nurture Key Relationships 3. Leverage Customer Value Scorecards 4. Build collaborative, team-based action plan 5. Measure the results
- 41. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Plan Element 1 – Seek First to Understand Collaborate with the customer around their goals
- 42. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Plan Element 2 – What relationships do we have and what relationships do we need?
- 43. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Element 3 - Scorecard Value from the CUSTOMERS’ perspective
- 44. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Element 4 – Develop a Collaborative Roadmap with the customer
- 45. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Element 5 – Measure Success Automation, not Excel!
- 46. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Account Planning – Process Best Practices Critical Success Factor - Process 1. Prioritize/Segment Accounts 2. Common Process, Tools & Language 3. Account Reviews/Coaching 4. Collaborate Critical Success Factors – Plan Elements 1. Understand the Customers’ Goals and how they measure success 2. Identify and Nurture Key Relationships 3. Leverage Customer Value Scorecards 4. Build collaborative, team-based action plan 5. Measure the results
- 47. Business Value of Strategic Account Planning Source: CSO Insights Sales Performance Survey Global Survey of over 1500 companies Ability to Create Account Plans & Prioritize as related to Forecast Deal Outcome Plan Exceeds Expectations Plan Meets Expectations Plan Needs Improvement Better competitive differentiation 96% 75% 53% Better at selling value/avoiding discounting 88% 68% 66% Relationship Level 3 or higher 78% 66% 51%
- 48. Business Value of Effective Strategic Account Planning & Management Relationship Win Rate Pct of AcctMgrs Making Quota Level 5 – Trusted Partner 54% 70% Level 4 – Strategic Contributor 51% 66% Level 3 – Solutions Consultant 50% 63% Level 2 – Preferred Supplier 48% 62% Level 1 – Approved Vendor 44% 57% Source: CSO Insights Sales Performance Survey Average Revegy Proprietary & Confidential
- 49. Business Value of Effective Strategic Account Planning & Management Relationship Win Rate Pct of AcctMgrs Making Quota Level 5 – Trusted Partner 54% 70% Level 4 – Strategic Contributor 51% 66% Level 3 – Solutions Consultant 50% 63% Level 2 – Preferred Supplier 48% 62% Level 1 – Approved Vendor 44% 57% Source: CSO Insights Sales Performance Survey Trusted Partner Revegy Proprietary & Confidential
- 50. COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL A complimentary offer for you. As our thanks for attending this webinar, we will send you a complimentary copy of the: 2015 Revegy Account Planning Template (Published in March) Email: Michelle at mvaldez@revegy.com Subject line: Account Planning Template Thank you for joining us!