Key Account Management

KEY ACCOUNTS 80% from 20% CUSTOMERS Buying regularly from you PROSPECTS Visited but not yet buying SUSPECTS Identified but not yet contacted or visited

Where Are We Headed? 1.What is a key account? 2.How do you get your message across to potential key accounts? 3.How do you become a “partner” not a supplier? 4.How do you measure the value you create and use it to win new business? 5.How do you audit a key account’s feelings? 6.How do you become an expert in their world? 7.What is the role of a key account manager? 8.What are the differences between an account manager and a typical salesperson? 9.How do you exceed expectations at each stage of their experience? 10.How do you manage KAM as a “team sport”? 11.What is the role of the Board in all of this? 12.What should an effective key account plan contain?

WHO IS THIS? He was born on 3 rd June 1947 He always enjoyed his sport but struggled in the early days He went to Oregon state university

SUSPECTS Identified but not yet contacted or visited Which 10 words capture your company’s bit of magic, character and uniqueness?

Your website? Proposals? Presentations? Introductions?

Customers buy at an emotional level...but justify at a rational level

YOU! ? REVLON HOPE HARLEY DAVIDSON FREEDOM NIKE WINNING So what do companies sell at an emotional level?

“We are the only...” “We are the first to...” “We are the best at...” “We are the leaders in your sector” “You won’t get it cheaper anywhere else!”

POOR GOOD SUPPLIERPARTNER OUTSIDERFRIEND BUSINESSBUSINESS UNDERSTANDINGUNDERSTANDING RELATIONSHIPS

What Are The Partnership Indicators? Clear evidence of ROI They tell you that you are a partner You understand their future strategy Good multi-level relationships Plan in place to develop the relationship They give you confidential information There are no nasty surprises They give you referrals

If you were arrested and charged with ‘planning to add value’ would there be enough evidence to convict you?

PRICELESS IDENTIFIABLE 1 QUANTIFIABLE 2 AUDITABLE 3 4

Killer Questions: 1. What will this proposal do to our bottom line? 2. For every £1000 we spend what will we get back?

What questions would you ask a key account to audit their perceptions and identify opportunities for the future?

Audit Questions Where are we meeting your expectations? Where are we exceeding expectations? Where are we falling short? What unresolved issues are there? How do we compare to other suppliers a) in our industry? b) all others? How would you sum us up in a sentence? How many marks out of ten? If we were an animal or bird what would we be?

The Future How is your business changing and developing? What pressures will you face? What are your main objectives for the future and how will you achieve them? How could we help you? How could we add more value? How will you measure us in the future? What do you see as being the big issues for our relationship in the future? What could we do for you that we are not currently doing? What would we have to do to score 10 out of 10? Where would you be happy to see us have more of your business? Is there anything else I need to know?

What makes good customer service ‘good’? What makes bad customer service ‘bad’? What happens?

How do you ensure that you are exceeding the key account’s expectations at each stage? StagesTypical Experience Bar & Restaurant XX Experience Room Check-In Enquiry Check-Out

StagesTypical ExperienceXX Experience Enquiry Polite Friendly Take details Confirm booking Use names Ask questions Special needs? Map link Details of local events / attractions Book restaurants / taxis We sign confirmation

KEY ACCOUNTS 80% from 20% What is the process for proactively “auditing” their perceptions?

If you are an EXPERT in the client’s world...you never have to sell again!

“To improve our profitability by improving theirs!”

Your Company Key Account

Key account management is a team sport! “My customer” becomes “Our customer”

MondayTuesdayWednesdayThursdayFriday Team Diary “Key account management is a team sport!” “None of us is as strong as all of us”

TeamFood Sector Transport & Logistics Printing Professional Services Keith Sheila Mike Pat Team Expertise = Current, compelling ROI testimonials * * * * * *

Quarterly Review Meeting Quarterly Review Meeting Quarterly Review Meeting Quarterly Review Meeting Annual Strategic Review

The quality of service we give the customer is influenced by the quality of service we give each other!

Imagine that your top key account is producing 8% of the turnover Mike, the “account manager”, wins the lottery and is leaving today He is handing over the account to Sue at 4pm What would you expect Mike to hand over and discuss with Sue?

Intelligence What is the SWOT situation? IntentionsImplementation What are the plans for the future? Who is going to do what by when?

Intelligence What is the SWOT situation? Background information Organisation chart “The numbers” Allies and enemies Key account audit Key personnel Favours log Supplier split Strategic bridges

VERY POSITIVE ALLY POSITIVE INTERESTED MINOR DECISION INFLUENCER MAJOR DECISION INFLUENCER MINOR DECISION MAKER MAJOR DECISION MAKER INDIFFERENT NEGATIVE VERY NEGATIVE ENEMY “Allies and Enemies”

TOM CHAUDHARY DICK HALL HARRY WILLIAMS SUE JACKSON JOB TITLECommercial ManagerFDCEOSD IN JOB SINCE PAJane Wicks Celia GrayPat Reynolds REPORTS TODickHarryChairman Mary CooperHarry NEXT LIKELY JOB Production for 2 years?Group CEO in 2 years CEO when Harry promoted DIETARYDoes not eat fishWheat allergyLoves pasta + real aleVeggie + fine wines CLAIMS TO FAME Appeared in Big BrotherMet Margaret ThatcherGulf War 1990 Sailed alone across Atlantic NO-GO AREAS PoliticsLabour PartyDrugs – son died 1999Fox hunting HOT BUTTONS Karting Liverpool FC Venice, RomeArsenal FC Sailing, surfing, canoeing FAMILYMarried with twin girlsWife died – three sons Married to Ann – son at uni Partner Tom – no children MOTIVATORAchievementSecurityAchievementInfluence KEY DATES??Birthday 12/05/60 Getting married next May Key Personnel

Supplier Split SuppliersDesignCopyStatFormsMktgPackMgtOtherTotal Us!!! Woodside Ind’s £10k£2k£4k£25k…….. £41k Print Rush£5k£2k£6k£4k£5k£9k……..£31k KFL Breedon £20k£3k ……..£18k……..£20k£64k Total£35k£14k£27k£31k£28k£9k Key Account: Bulldog Automotive, Warwick Value today: £28,000 ……..£7k£14k£2k£5k……..

Intentions What are the plans for the future? To add value to them To improve your business To develop relationships

Implementation Who is going to do what by when? month calendar Build around their timings Start with the end in mind

KEY ACCOUNTSCLIENTSPROSPECTSSUSPECTS kamguru.com