2020 is here, well almost. It is that dreaded time to think about what sales we hope to achieve from our key accounts.
Why? Have you heard of the 4 P s? Planning Prevents Poor Performance.
Below is a simple guide to a solid account plan for key accounts. It takes no longer than a few minutes to get going and easy to refer to during the year.
The job of a key account manager is to grow and retain key accounts. I define a key account as delivering between 3 and 5 % of total revenues/profits.
If the account deliver more than that it is a strategic account as that performance can make the difference between profit and loss.
It makes sense having a planned approach with key accounts.
In addition to obvious numbers such as quote to order history and annual turnover, there are just six fundamental areas for each key account relationship to answer.
Having the answers should help to improve sales, retain the customer, deliver great service and earn bonuses.
Here they are:
- Current relationship:
What is our current position with this customer?
Do we get all the orders we could get from them? If not, why not?
How does the customer see us? A partner, a fall-back supplier, expensive, fabulous?
How would you describe the key challenges we face in developing and managing the relationship?
- Customer Agenda:
What is the customer’s agenda of essential goals and priorities?
Like most companies, they will have a monthly, annual or even longer plans. If we have good knowledge about this plan, we should be able to gain more business from them.
We should help the customer achieve their plans. Some customers would be very happy to share their plans or vision. The latter can often be found on the website or in brochures.
- Our Aspirations
What are our aspirations for this customer relationship?
What should it look like in terms of turnover, product mix, order methods and relationship with key contacts?
Numbers are good to state our timed, objectives, yet the quality of the relationship should also be articulated. The best account management includes sharing some of the aspirations with the customer. The larger a customer, the more they want a deep relationship with their suppliers and see them as partners.
- Major Opportunities:
What are the most promising opportunities to deepen and grow this customer, given their goals and priorities?
This could be through products, service led, relationship based or projects the customer is hoping to win.
- Key Relationships:
What (senior) relationships must be deve
loped or deepened to capture the opportunities?
This should cover decision makers as well as influencers. It makes sense to matrix this with other people in your company.
- What help do I need?
What internal resources and people do you need to leverage to capture the best near-term opportunities and reach your ultimate aspirations for the relationship. This can include products, delivery mechanisms, bespoke pricing or even customer incentives like football tickets or other entertainment.
Key account template
Key Account Name: 2020 GP/Revenue target:
Key Account Manager:
Describe the current relationship
- What is the customer’s trying to achieve this year?
- What are my plans with this account for 2020?
- What are the major opportunities I aim to achieve with this account?
- Who are the key relationships that need developing for this account?
- What support do I need to grow this account?
Good luck planning your success in 2020. It will help to make it better again than 2019.
Feel free to get in touch with any questions.
+447738010170 or gert.scholts@thebestsalescoach.co.uk
