Global account management is the natural extension of national account management. It’s not uncommon for a franchisee to call and ask about our products. From inception, we knew it was important for them to maintain a proactive approach in order to drive sales velocity and that success would come down to a mix of ongoing customer care and relationship management. GAM has since been adopted by medium-size supplier… Strategic account management is an important job that requires rigor and discipline. Philadelphia, PA 19104P: (215) 717-2900, For investor relations, finance & administration:2929 Walnut Street The franchisees, though, don’t change and their voices are powerful. To turn buyers into business partners, a key account manager (KAM) typically provides dedicated resources, unique offers, and periodic meetings. Key Account Management Key account management is the process of building long-term relationships with your company's most valuable accounts. The concept of Strategic Account Management is focused on various long-term results and is dedicated to utilizing a firm's resources at its best. We hope you find these GrowthBits helpful and share them with your network. We needed to focus marketing on the value we add to our franchisees, their employees and ultimately the bottom line. Account planning is important to help identify the resources that you need to achieve your growth objectives. We preload each opportunity into Salesforce.com in draft form, follow an outbound call plan and then log qualifiers and metrics on each opportunity. Often they're your worst. Identifying your key clients allows you to then work with their Architects, Engineers and Contractors, taking a more holistic approach to your specification strategy. LLR Partners believes in sharing the wealth of experience and expertise within our portfolio companies, network and teams in order to inspire and help accelerate growth for a wider community of business leaders. Our intuitive resources ensure your teams can execute on time, on budget, and at … Some owners meet in their own smaller groups within the brand so we usually try to participate. In particular, the ACC REGISTER and ACC VERIFY subcommands should allow a network to provide a consistent interface to register new accounts, no matter what services software is used on the backend. To overcome that natural tendency, you’ve got to streamline the peaks and valleys of deal flow. Key Account Management (KAM) and Revenue Management (RevM) have been widely practiced in the service industries for more than three decades, but the effects of RevM on KAM remain largely unknown. Listening and saying, “Yeah we’ve already sold you this, but we hear you saying that you’re struggling with this other thing. Secrets to Effective Sales and Marketing Alignment. We use cookies to help provide and enhance our service and tailor content and ads. In this course you will learn the sales processes, frameworks and skill sets utilized by top sales organizations in managing channel partnerships with retailers and resellers. Now, it’s not unusual for each team to report directly up to SICOM leadership with information on their pipeline and call activity. Dr Wang is a regular reviewer of a number of leading journals in marketing and hospitality and tourism management. Here’s some insight into what made our account management framework successful out of the gate: Having a formal, repeatable sales process cuts through everything we do. There are a lot of resources linked on this post – leave a comment below if you have any questions. Inside salesA Su… WMF 5.1 is available for installation only on Windows Server 2012 R2, Windows Server 2012, Windows 2008 R2 SP1, Windows 8.1, and Windows 7 SP1. And, for sure, we aren’t engaging high enough level decision makers." Key Account Management is a process that helps sustain and expand relationships with important key accounts and will work closely with multiple business departments in order to maintain and further develop the relationships with the key accounts. If there’s a dip in calls, I usually hear about it before I even ask for an explanation. The interactions between revenue management and key account management have been largely ignored. ey account management (KAM) is falling short of its potential because of four common mis- takes. By adhering to this proven process, our account management training enables sales organizations to positively impact everything from customer perception to cross-team collaboration. Read, How to Rev your Channel Sales Engine with Marketing Enablement. Although segmentation of customers will vary by business we have outlined below a generic customer segmentation approach and identified an effective tool for each segment. For the sales leader, the first six months of building an account management framework is spent teaching. In the past, SICOM did very little proactive marketing. Xuan Lorna Wang is an Associate Professor at the London School of Hospitality and Tourism, University of West London. She won the ‘Lord Forte Award’ from the Institute of Hospitality in London in the year 2000. It demands a new approach to the key account by including extra aspects of the client – supplier relationship. Businesses that set up a strong sales discipline and can move proactively to drive sales and anticipate customers’ needs will not only make money, but also create an environment of trust and integrity with their customers. He is the co-author of four books, over 50 articles in refereed academic journals, and numerous conference papers and book chapters dealing with topics such as ethical marketing, social marketing, strategic marketing, and the use of social media in B2B marketing. In China, she worked with ‘Guo-An Hotel Corporation’ based in Beijing, where she led her team to win ‘the Best Service Award’ from Beijing Tourism Administration Bureau after hosting ‘the 11th Asian Games’ in 1990 and she was awarded as ‘Service Pacesetter’ in recognition of her personal contribution. Copyright © 2020 Elsevier B.V. or its licensors or contributors. It’s the process by which you: Identify your company’s goals Understand the targets and how they are measured Philadelphia, PA 19104P: (267) 866–7999. Even in the cases where we don’t need to sell in the traditional sense, our account management team walks the customer through a sales process start to finish. This is […] That’s how the group moves beyond a strict vendor role to become trusted advisors for our customers. Windows Management Framework (WMF) 5.1 brings functionality that has been updated from WMF 5.0. Each can stand alone as a one-off sale, but they are built to work interdependently and function together as an ecosystem. The ACC command framework provides a standardized way for clients to create and manage accounts. For investor relations, finance & administration: © 2020 LLR Partners. Key Account Performance Management framework (Internal) Key Take away: Have a plan and don’t suck, Key Account Management is a lift equal to the reward, see successful case study #1 here. Intermediaries The proposed framework is the first attempt of its kind to amalgamate KAM and RevM, involving critical analysis to assess comprehensively the revenue and the relationship value of a key account. Our business model naturally lends itself to reaching that end. The account management framework we teach covers three key stages of account management: data gathering, strategy sessions and execution. Ross Brennan is on the editorial advisory boards of five international academic journals. Culture & Careers, General Inquiries:Cira Centre The Strategic Account Management Competency Model. In a split second, you can go from knowing everyone to not knowing anyone. To overcome that natural tendency, you’ve got to streamline the peaks and valleys of deal flow. Extended team 4. Low margins, customisation, and because you need them… Key account management (KAM) is one of the most important changes in selling that has emerged during the past two decades. WMF provides a seamless way to manage various versions of Windows client and Windows Server. A functioning Key Account Management Framework is an edge in customer acquisition, customer development and customer retention. Is there anything we should be getting ahead of? The study uses an international hotel company as a research context to investigate, first, how a long-term relational approach to KAM may have been affected by RevM short-term revenue maximization goals, and, second, how KAM could be facilitated by RevM through an integrated approach to yield optimization from perishable products and from key accounts. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. A framework for key account management and revenue management integration. You have to upend the manufacturer to distributor framework – the sales team can’t rely on the parent brand to tie it to the franchisee. We built out a PowerPoint presentation for them to work from, put up a new website and created new sales and marketing collateral, and in all of it the message shifted from the basic features of SICOM products to actionable ways they make a difference in customers’ businesses. It really is a foot race to market dominance and this helps us compete by staying organized and strategic with our reps’ time. Revenue management seeks to optimize short-term profitability through dynamic pricing. Under this new account management framework, we had to walk the talk and think through what the team needed to be successful. Among our key findings are that Top Performers in Strategic Account Management have strategic account managers who: 1. Generate leads for expansion. Account Management Framework; How to Identify Key Accounts: A Quick Guide to Getting it Right. Businesses that set up a strong sales discipline, move proactively to drive sales and anticipate customer needs will not only make money, but also create an environment of trust and integrity. Research shows that 70 percent of buying experiences are based on how the customer feels they are being treated 5. Account strategies developed in the context of a well articulated and understood sales strategy – ideally so simple that strategies translate easily to a single store. An account overview 2. And then, the best-case outlook if all goes our way. It’s important to create this kind of ownership mentality among the team. Technology is absolutely critical to that effort. Strategic Account Management will examine a major challenge of sales teams - how to maintain your customer relationships in a competitive marketplace and how to grow their business with you. Prior to her academic career, she held a number of managerial positions in the hotel industry. Content uploaded by Xuan Lorna Wang. Key Account Management (KAM) is a professional sales approach which involves the supplier and client’s business working together to gain understanding of each others business and achieve common goals. It’s not breaking news that people, if left to their own devices, will wait until the very last minute to do most things. If you really want to motivate people, put your money where your mouth is: show your account management team a path to make 40-60% more by following this process. People wait until the very last minute to do things. One, the right accounts—those with the highest upside—are not designated as “key.” Two, relative to the resources deployed to serve them, too many accounts are designated key. The solution 2. That is to say, the sales team can’t rely on the parent brand to tie it to the franchisee. Why Account Management Proactively identify account risk Reduce customer churn Increase Customer Lifetime Value. System integrators 3. Think of it as running a business within your business. As we stated previously, key account management is the approach a company or salesperson takes to manage and grow an organization’s most important accounts. It is one such concept that all your colleagues should be acquainted with. A framework for key account management and revenue management integration.pdf. The best way we’ve found to do that is from the bottom up. Investor Relations Author content. They also let clients build nice interfaces for account registration. Reach out to us any time to discuss your growth strategy. A SWOT analysis 3. WMF installer packages contain updates to management functionality and are available for older versions of … Too often it doesn't happen at all. A big piece of this is recognizing your customers’ pain points. Drive Value: The best strategic account managers grow accounts because they drive value for buyers proactively. Copyright © 2014 Published by Elsevier Inc. https://doi.org/10.1016/j.indmarman.2014.06.006. Talk to them on a regular basis. What’s the brand saying? The key account management framework really focuses across those three areas but particularly it offers a set of standards that an organization can look at to start thinking about what does it do in year one, year two and year three to start developing key account management capability. It was important for us to really drive that home. This paper addresses this neglected area of study in the marketing field by presenting a framework for KAM and RevM integration that aligns the potentially conflicting management priorities of the two. Strategy Mapper ensures your sellers are executing at peak performance in every selling situation, from key account management, opportunity planning, meeting planning and execution by providing them a configurable, robust and intuitive framework within Salesforce. We also go through key performance indicators around calls, open opportunities and outstanding tasks to get deals closed. Our model is win anything anywhere and once you’re in, there’s opportunity to add other products to a customer’s suite. Your biggest customers are not your best customers. Key Account Management (KAM) and Revenue Management (RevM) have been widely practiced in the service industries for more than three decades, … But there’s a trap in sales where you do something until it’s routine and then you just sort of stop. LLR Partners believes in sharing the wealth of experience and expertise within our portfolio companies, network and teams in order to inspire and help accelerate growth for a wider community of business leaders. KAM is a radically different organizational process used by … Maybe we can help you solve that, too.”. 2929 Arch Street, To reflect this, a framework of tools to gather and understand customer feedback that can be fed back into developing a strategic account management approach should be deployed. Caring for your customers and maintaining those relationships will ultimately allow your team to go from vendor to trusted advisor in the eyes of your customer. That hit our installation team, our finance team and our shipping department hard. Media Relations Key account managers that take the time to build a reservoir of trust and goodwill with their counterparts will prove invaluable to your company. To sidestep that, we do our best to maintain consistency and create a cadence. It’s the daily management of customer accounts to make customers want to continue the … After all, the individual franchise owners use our technology; they pay our invoices directly and rely on us for day-to-day support in their restaurants. Even if a product seems like a necessary purchase for a business owner, the value has got to be there. The important thing to remember is that succeeding with key account management takes a significant amount of time to implement correctly. At SICOM, we build and sell technology that helps franchised fast food restaurants such as Wendy’s and Burger King run more efficiently and effectively, from kitchen and back of house operations to customer-facing point-of-sale interactions and digital signage. The funny thing, though, is that we rarely sell our products to the folks who run Burger King at the corporate level. Businesses that set up a strong sales discipline and can move proactively to drive sales and anticipate customers’ needs will not only make money, but also create an environment of trust and integrity with … We hope you find these GrowthBits helpful and share them with your network. LinkedIn We have to upend the manufacturer-to-distributor framework. And, it is a collaborative process that requires involvement from the client to be valid. Strategic Account Management Roadblock #3: "There's so much more value we can create for our strategic accounts, but it takes us forever to get them introduced to, and using, our new products, services, and capabilities. B opportunities 3. A summary of the customer’s initiativesDiscovery and Prioritization of Opportunities 1. Her main research interests include revenue management, services marketing and corporate reputation management. When that happens, it’s more of the same: listening, asking questions and educating that franchisee on what SICOM is about and how our products can make his or her business run better. Submit Business Plan, Twitter The Essential Principles for Success of Large-Scale Strategic Initiatives. To protect key customer relationships, the impact of revenue management on key accounts must be carefully evaluated. As a customer-facing team of 12 professionals, SICOM’s account management group is cold calling and responding to inbound calls from current and prospective customers. A Strategic Account Management Framework for Customer Success 6. Before we revamped our approach, we would regularly receive 80 percent of our orders within the last 10 days of our 90-day sales cycle. Formalizing our account management team with process discipline, aligning each rep to a specific brand and building out a relevant commission structure has allowed us to motivate the team and commit to a set of common goals. It’s great intel and just another way to best serve our customer base. A opportunities 2. Get actionable insights to help scale your business twice per month. For example, we have about nine base products. The ultimate purpose of KAM is to develop long-term, mutually beneficial relationships with specific businesses in order to meet strategic goals and optimize value in both companies. We have never wavered from the following routine and, over time, it’s what’s allowed us to be more proactive. Within an account management framework, create the right circumstances for success: a dedicated sales process, a solid commission structure, a fine-tuned business model and a culture of listening. You have to model the behavior you want to see in the team and walk them through the process line-by-line, deal-by-deal, stage-by-stage, close-by-close. C opportunitiesAn Assessment of the Team’s Capabilities 1. A customer can enter at any point with any one product. The relationship begins with corporate brand approval, and that translates into access to a brand’s network of franchisees, but then it is incumbent upon us to foster relationships with and sell to franchise owners directly. An outline for a strategic account planning template should include:An Assessment of the Customer’s Business 1. These accounts make up the majority of the business' income. Instagram By continuing you agree to the use of cookies. There will be bumps in the road, but in the end, it is worth it. It creates an effective and efficient sales funnel, allowing our 12 reps to manage thousands of deals each year. When you’re working with big franchised brands, there can be a lot of turnover. Gartner research shows 84% of sales leaders report they completely rebuilt their key account program at least once in the past seven years due to underperformance. Windows Management Framework (WMF) provides a consistent management interface for Windows. Account Management and Strategy Best Practices Building relationships with existing clients to transform them into key strategic accounts is a crucial component of any sales strategy because selling to an existing account is much more profitable and predictable than trying to win new business. He may only adopt our Drive-Thru Director at first, but our goal is that this will lead to using our full back-of-the-house system as well. All Rights Reserved. Account management starts after the sales transaction is complete. Revenue management and key account management are often conducted independently of each other. Where are you running into problems? We also get a lot of inbound requests. Successful account management is easier said than done. Each team takes public accountability, and it’s a clear indication that what we’re doing is working. ISVs 5. Business partners 6. We knew that if we structured our sales process and business model well, we’d gain momentum and create opportunities to build brand share within existing customers as well as among additional franchisees of the same restaurants. And if you really want to motivate people, you have to put your money where your mouth is: we showed our account management team a path to make 40 to 60 percent more by following this process. Because of the high volume of interactions, we approach this a lot like anyone would inside sales: daily phone conversations with existing and potential customers. We have always done business reviews for the brands we work with, but we’ve also begun doing them for larger franchises, too. Ross Brennan is a Professor of Industrial Marketing at the University of Hertfordshire whose primary research interests are in business-to-business marketing strategy and inter-organizational relationships and networks. Within an account management framework, create the right circumstances for success: a dedicated sales process, a solid commission structure, a fine-tuned business model and a culture of listening. Ask questions. Key Account Management is a strategic decision The broadened scope of superior key account management is reaching far beyond selling products or services to important clients with high sales turnover. Prior to entering the academic profession Dr Brennan worked for BT plc for 11 years in a number of marketing and strategic management roles. Its initial adopters were primarily technology giants like Hewlett-Packard, IBM, and Xerox, whose customers—especially large multinationals in the automotive, financial services, and petrochemical industries—were demanding that the IT products and services provided to all of their locations be compatible and supported to the same standard. An account management strategy is a blueprint that guides all your activities within your organisation and with your clients. 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