In short: what is important account management all about?

Managing important accounts is a long-term process, it takes time:

We must recognize that we are in the Management of Large Accounts for the long term. It takes time to manage an important account and we will only receive a return on our investment in time if we can have a long-term result. In some of the organizations we’ve worked with this is stressful because the whole culture is about creating a short-term sales outcome where product and profit are the primary drivers and measures of success. We should not underestimate the challenge that managing key accounts can present to corporate culture. It emphasizes the relationship over the product, the profit over the volume, and the team over the individual, the long term over the short term. At the same time, it is necessary to recognize the short-term practical realities of business life.

One of the best ways to manage this tension is to have someone act as a mentor, conscience, or guide for the account manager and account team. They are not involved in the day-to-day management of the account, but are invited to view and comment on major proposals and submissions. Their primary role is to participate in the long-term plan review every few months to ensure the relationship is as productive as possible and reflects the values ​​of the organization as a whole.

The role of the lead account manager is to be responsible for the overall relationship. They influence everyone involved in the account to ensure a coordinated and synchronized approach. The lead account manager is responsible for writing the account plan, getting team agreement and commitment, and then monitoring implementation.

Managing important accounts involves relationships, not just a mechanical approach:

Under this heading, we need to discuss three main aspects of managing important accounts.

o The importance of relationships in Major Account Management.

o The complexity of relationships in Major Account Management.

o Relationship mapping in Major Account Management.

Importance:

In Major Account Management it is essential that we manage both people and processes. Of course, we must hit the price of the product. We have to be excellent in administration. Our customer service and product range must be strong. But “people buy from people” and “we are in a people business.” Managing the complex range of relationships within a major account is difficult and demanding, but our ability to manage relationships will define whether or not we remain successful.

Complexity:

In a reactive sale there is only one relationship: the one between the seller and the buyer. In large accounts the situation is much more complex. Often there are contacts at many levels and in many places. On one main account, we’ve identified 1,000 relationships between the 10-person account team and people representing the client. But it’s not just a numbers issue, it’s often a policy issue. Some contacts don’t want us to talk to people from other departments or at different levels. It may also be that the complexity is caused by the range of products. Users of one product rarely talk about the specifications of another product. In any complex relationship, we will like some people more than others. This is not to mention the interdepartmental tensions. All of these things make primary account relationships complex, and we must recognize their complexity.

Mapping:

If the relationships are important and if the relationships are complex, then it is essential that we find a way to map, analyze, plan and monitor those relationships. In recent years we have found that a chess-based approach allows for a very practical way of identifying key issues.

If we can confidently answer these questions and communicate our thinking to the entire account team simply and clearly, we are halfway to success. This approach has given people across a wide spectrum of organizations a common language and way of working.

It can only be done with selected clients:

The last word of this definition is selected. Choosing the right key accounts is vitally important for three main reasons:

o We do not have the resources to treat each client as a key account.

o Not all customers want to be treated as a key account.

o Selection allows us to prioritize our activities in accordance with our overall business objectives.

Many organizations rank their top accounts simply by the size of sales for the year, but the organizations we see that are really making headway in top account management take other factors into account. They also make sure that everyone knows who the top accounts are and why they are important accounts. It is important to be rigorous with the selection criteria you use! You’ll also need to apply some form of weighting to reflect your priorities. The fact that a Master Account does not meet all of your criteria will not disqualify it from being a Master Account. You will only need to score higher in other areas to qualify.

Based on this score, organizations can rate their accounts. They can be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The airline analogy is a good one because on a flight there may be people in Standby who are completely satisfied with the service they receive, even though they know that there are people who receive “better” service in Club Class. Qualifying your accounts is not a matter of giving a better or worse service to some customers. It is about giving all its customers adequate service. When we select our top accounts and consistently deliver what we promise, we are managing our accounts professionally and effectively.

In summary: success factors in key account management:

Oh Successful role development:

o Effective working relationships with other team members.

o A continuous drive to improve the productivity of the accounts team.

o Management commitment to the account team role with career progression opportunities.

o Reinforcement of the role through authorized career structures, job descriptions and basic training programs.

Oh key skills:

o Understand the financial and legal requirements of the account.

o Understanding of the business objectives of the company.

o Understanding of the commercial policies of the company.

o Build high levels of product knowledge.

o Understanding of the client’s business objectives.

o Identify decision makers.

o Understand the customer’s buying strategy.

o Evaluate competitive activities.

o Put together an account development plan.

o Ensure effective processing of sales orders.

o Build the right levels of income and profitability.

Oh basic skills:

or Delegation

o Interpersonal skills.

or Consulting.

o Control and financial analysis.

o Project management.

o Human management.

o Initiative and creativity.

secondary skills:

For example, industry knowledge, competitive knowledge, product knowledge, etc.

Success factors in the development of key accounts:

Oh The stages of a long-term process

or Presale.

o Negotiation of contracts.

o Implementation / Delivery.

or Review.

or Operation.

Oh Goals for an account team

o Ensure that a consistent and professional image of your Company as a business partner is presented to the client.

o Ensure a long-term business relationship with the client as a basis for business growth.

o Penetrate the client organization and decision making unit creating new opportunities that can be exploited to accelerate account growth.

o Understand and document, on an ongoing basis, the direction and strategic business organization of client organizations.

o Provide the company’s senior management team with information on the long-term growth potential in the client’s market sector and on the critical success factors for exploiting it.

o Ensure that the company’s solutions are technically sound and based on an adequate understanding of current requirements and reinforce the client’s perception of the benefits of the company’s market approach.

o Ensure that the company’s total resource is delivered in a manner that meets customer requirements and supports chart of accounts objectives.

Conclusion:

An effective master account management strategy depends on selecting your master accounts wisely, creating a strong, consistent, and flexible way of working with both master accounts and other clients, and then implementing the plan in a disciplined, effective, and efficient manner.

One of the successes of the Major Account Management program has been the creation of common models and language that facilitate discussion and planning between units and departments. It has also stimulated our clients’ commitment to planning long-term key relationships. Managing important accounts has many implications for individuals, departments, and the company as a whole. It will always be demanding, but if done right, it will be very rewarding.

Copyright © 2006 Jonathan Farrington. All rights reserved

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