2PROGRAMME OBJECTIVES 1. To understand the Key Account Concept 2. To learn a process for analysing key accounts3. To develop an Action Plan for your immediate product objective within your key account4. To become aware of the systemic implications of implementing an effective KAM programme5. To generate some specific ideas that you can immediately apply to the management of your key accounts.
3IMPORTANT CONCEPTS IN KAM Position and strategy - where am I now, and how do I move to a better position?Strategic, Long-term focus v Tactical short-term focusWin-winKAM is an integrating function not an isolated one. It is cross-functional, not departmentalWhich accounts are key accounts, and what is it?
4DEFINITION Key Account Management is the process through which you build long-term, win-win relationships with those accounts that either currently or in the future offer you the opportunity to achieve high-value commercial results.
5ACTIVITIES Product Management and broader marketing mix management Customer Relationship ManagementPersonal sellingSupply-chain managementDetailed account information collection / analysisCross-functional team managementCultural and structural developments in the organisation.
6What are the elements of excellence? A STUDY OF EXCELLENCEWhat are the elements of excellence?1. Know what results you want2. Engage in continuous planning to achieve those results3. Implement strategies and use feedback to improve steps 1 and 2The wonderful thing is that excellence can be modeled.
7Highly successful people know why they are successful Highly successful people know why they are successful. They have a system, and it is flexible and adaptable to change. It is not luck. As Gary Player says,The harder I practice, the luckier I get.And, the harder you practice this system, the luckier you will get!!
8SOME UNDERLYING ASSUMPTIONS KAM says that individual orders are not enough. True account success means;Repeat businessSolid referralsLong-term relationshipsAt the heart of KAM is process or methodology. Necessary to navigate organisational complexity.
9THE COMPLEX SALEA sale in which a number of people must give their approval or input before the buying decision can be made.
10ELEMENTS OF A COMPLEX SALE Account has multiple optionsSeller has multiple optionsIn both organisations multiple levels of responsibilityThe account’s decision making process is complexThese conditions demand an overall strategy towards the account.
113 MAXIMS OF KAM1. Whatever got you where you are today is no longer enough to keep you there2. In a complex sale, a tactical plan is only as good as the strategy that led up to it3. You can only succeed in sales today if you know what you are doing and why.
12THE IMPORTANCE OF CHANGE If you don’t change you die.Success is about change. But change is a tough subject for us. We don’t like it , and usually only do it when we have to.Tiger Woods and Gillette are different. They follow the excellence strategy of continuous development of their position.
14KAM STRATEGY: FOCUS ON THE ACCOUNT Differentiate between short and long-term objectivesDon’t sacrifice the account for a short-term objectiveIn key accounts, long-term is kingFocus on the account, not on yourselves and your functions.
15BALANCING SHORT AND LONG-TERM Long-term relationships are about trust and credibilityYou earn these each and every time you produce win-results for your account and its representativesLong-term success is a function of many successive short-term transactionsOur process builds long-term relationships, one objective at a time.
16OUR KAM PROCESS1. Identify your current position with the account, with particular reference to your current single objective2. Improve this position through analysing the following key elements;The Buying InfluencesStrengths and weaknessesWin-results for the buying influencesCompetition3. Prepare an action plan to improve position and implement it4. Begin the process again in the light of feedback.
17STARTING POINT - CURRENT POSITION Strategic analysis of accounts begins with fixing your current position;Within the account as a whole, andFor your current product/sales objectiveYou are then able to take systematic corrective action to improve your positionKAM is about consistently taking action that moves you closer to producing win-results for your accounts. Improving your position means building credibility.
18UNDERSTANDING CURRENT POSITION Who are all the key players in the accountHow do they feel about youHow do they feel about your proposalsWhat questions do they want answeredWhat constitutes a win-result for themHow do they see your proposals with respect to their other options?We will answer these questions in our workshops.
22BUYING INFLUENCESYou are conducting complex sales which require the input or approval of several people.Who are these people, and what role do they play in the decision to buy your products?Do you have a strategic process to identify them?
23BUYING INFLUENCES Look for roles first, then people. There are 4 roles, each has a different influence on decisionEconomic Buying InfluenceUser Buying InfluenceTechnical Buying InfluenceConfidantOne role may be occupied by more than one person, and one person may occupy more than one role.
24USING BUYING INFLUENCES TO IMPROVE YOUR POSITION 1. Understand the 4 Buying Influence Roles2. Identify all the key players in each of these roles3. Ensure that all players are covered. You must fully understand and deal with their attitudes to your proposalKnowing this information objective by objective can help you see the big account picture, and balance the short and long-term.
25ECONOMIC BUYING INFLUENCE Role: To give final approval to buyFocus: Bottom line and impact on organisationAsks: “What return will we get on this investment, and how will it impact the organisation?”Only one for any given objective, but maybe a boardControls expenditure, authority to release fundsDiscretionary use of resourcesVeto power.
26LOCATING THE EBIUsually located higher up the organisation, but by no means always the CEO or general manager.The person can change from objective to objective. Hence the value of account wide understanding . It helps to consider;1. The monetary value of the sale2. Business conditions3. Experience with you and your company4. Experience with your product5. Potential organisational impact.
27USER BUYING INFLUENCES Role: To make judgments about impact on job performanceFocus: The job to be doneAsks: “How will it work for me in my job?”Often several people in this roleThey use or supervise the use of your productPersonal and subjective since User will live with your solutionDirect link between the user’s success and the success of your productNot securing their support can be dangerous.
28TECHNICAL BUYING INFLUENCES Role: To screen outFocus: Match to specifications in their area of expertiseAsks: “Does this meet the specifications?”Often several or many people in this roleThey judge measurable, quantifiable aspects of your proposalCan’t give final approval, but can say no based on technicalities.
29CONFIDANTS Role: To act as guide for a given objective Focus: Your success with this proposalAsks: “How can we ensure that this success happens?”Develop at least one for each objective. They can be found in the account, in your organisation or outside bothThey can provide and interpret information about:1. Validity of the product/sales objective2. Other buying influences3. Other elements of your strategic analysis.
30DEGREE OF INFLUENCE AND RECEPTIVITY You need to position yourself with all the buying influences, but not all are equally importantYou need to assess degree of influenceThe receptivity of the buying influences to your proposal is also important to gaugePeople only buy when they perceive a discrepancy between reality and their desired results.
31EARLY WARNING AND PREEMPTIVE ACTION SEMINAR 3EARLY WARNING AND PREEMPTIVE ACTION
32EARLY WARNING AND PREEMPTIVE ACTION Discovering weaknesses in your position while you are still able to correct them is a central goal of KAMThis approach to ‘mistakes’ often clashes with organisational culture which encourages covering up weak positions and denial. BewareWhere do you have a weak position, and how can you use your strengths to improve your position?
33WHAT IS A WEAK POSITION?1. Missing information about any of the key elements2. Uncertainty about any relevant information3. Uncontacted buying influences4. New members to the account in a buying influence role5. Reorganisation.
34ELIMINATING WEAK POSITIONS THROUGH STRENGTHS Any identified weak position should be eliminated by leveraging a strength. What are strengths?Areas of differentiation that matter to the customer for this objective, that are not found in the competitionStrengths must improve your position for this objective. Anything that increases your understanding can be a strategic strength, provided its an area of differentiationThe strength must matter to the customer for this particular objective.
35KAM AND THE WIN-WIN PARADIGM SEMINAR 4KAM AND THE WIN-WIN PARADIGM
36KAM AND THE WIN-WIN PARADIGM Relationships with your key accounts should be based on win-winAll of the other alternatives eventually end in lose-loseA win-win relationship is one in which the self-interest of both parties is served. Anything less constitutes a non win-win, and threatens your relationship with the accountLook at all of your buying influences and ask yourself;“Are you honestly trying to serve their self-interest? Do you really want them to win? Do they know you want them to win?”
37WIN-RESULTSA Result is a measurable impact that a product has on one or more of your customer’s professional processesA Win is the fulfillment of a subjective, personal promise made to oneself, to serve your own special interest in some special wayWins are always different for different people
38A win-result is an objective professional result that gives one or more of your buying influences a subjective, personal winResults come first, but are not enoughAccounts get results, but only people win.
39CHARACTERISTICS OF RESULTS Positively and measurably affect your customer’s professional processesEither it improves current process or fixes something that has gone wrongIt is tangible, measurable and quantifiableIt can affect more than one person in the account.
40ECONOMIC USERLow cost of ownershipGood budget fitROIFinancial responsibilityİncreased productivityProfitabilitySmooth out cash flowflexibilityReliabilityİncreased efficiencyUpgrade skillsFulfill performanceBest problem solutionDo job better / faster/ easierVersatilitySuper-serviceEasy to learn and useTECHNICAL CONFIDANT (WINS)Specs Best and product meets themDelivery timelyBest technical solutionDiscounts/low bids/pricereliabilityRecognitionVisibilityGet strokesMake contributionBe seen as a problem solver
41CHARACTERISTICS OF WINS A fulfillment of a conscious or unconscious promise to oneself. This changes from person to person and over time for one personWins are intangible, not measurable or quantifiable. They are more difficult to identifyThey are even more important in an environment where financial rewards are limitedWins are personal. Results can be shared, wins can’t. The same result can give different wins for different peopleIt is not enough to deliver results alone. You must also deliver a win for each of the buying influences.
43WHAT ABOUT THE COMPETITION? The only competitive strategy that can bring you success is a strategy in which you keep firmly focused on the account, objective by objectiveRespect, but don’t obsess about the competitionConsider the advantages to the account of an alternative supplier, but don’t neglect your strengthsProactive rather than reactiveEnable the customer to perceive that you have made a significant contribution to their businessThe value that you add should be something that can not be obtained elsewhere.
44ACTION PLANYou have completed all of the workshops on all of the key elements for your single sales objectiveYou have been able to revise your position in the light of your analysisNow is the time to make your Action PlanWhat do you need to do to improve your position?What strengths can you leverage to eliminate a weak position?Keep the list quite short. Positions can change in a blink, and you then have to change your strategy.
45SYSTEMIC IMPLICATIONS OF KAM Implementing a KAM strategy will have an impact on the wider organisational systemStructure. Eliminating barriers and organisational boundariesCulture. Changing the behaviour of org. members, encouraging new attitudesSystems and procedures. Particularly relating to performance review criteria, rewards and trainingThe skill set of the account teamFailure to deal with systemic implications severely lessens the impact of a KAM strategy.
46CONCLUSIONS1. Success needs goals, strategy and feedback. In other words, a system2. KAM is a system to enable you to build profitable, long-term relationships with your important customers3. KAM has a long-term focus, based on win-win4. You serve the long-term interests of an account objective by objective. This allows you to see the short-term in the light of the long-term
475. To serve accounts, we need to have extensive, reliable information about them 6. We looked at what information was necessary by analysing a single product/sales objective that you are currently working on7. The results of this analysis allow you to take the necessary action to improve your position8. Finally, we discussed the vital systemic issues relating to implementing a KAM strategy.