Category Archives: Sales Account Management
It’s common for sales leaders (and salespeople themselves) to look to their large, strategic customers year after year to sustain or drive increased revenue performance. However, the availability of options, decreasing customer loyalty, higher expectations and constant competitive threats are making forecasted business from your best customers anything but a certainty. All too often, account growth strategy and plans are isolated events and are missing one critical component – the buyer.
An enterprise-wide, customer-centric approach to working with strategic accounts is a mainstay of sales organizations that understand that markets change but that customers are always relevant. Because the business environment in which your customers operate has become more challenging, salespeople need to increase their proficiency in identifying and meeting needs to have credibility as a trusted advisor, one who helps the customer decide how to buy and doesn’t just sell.
4 FACTORS AFFECTING ACCOUNT GROWTH STRATEGY (1) Renewed Emphasis on Price
Price has always been important in business. In today’s environment, funding is scrutinized. Customers feel like they should look longer and harder to justify why they are buying a particular solution at a specific price. As pricing pressures increase, more and more firms find customers trying to “commoditize” the solutions that suppliers offer.
(2) Greater Complexity
The business environment has become increasingly complex. An IBM study of more than 1,500 CEOs cited increasing complexity as a major challenge to the managerial and leadership ranks » Continue Reading.
If you win accounts only to lose them at contract renewal, you are not managing your accounts well, if at all. There are three components of an effective account management strategy:
The creation of a plan The tools to support the plan Execution
Let’s say you have written account management plans for accounts that warrant them and you have the tools to make those plans happen. What’s left? As Nike would say, “Just do it.”
But going out and doing it is where many sales professionals fall short. They’re too busy doing other important things: chasing after new business, prospecting, doing internal reports, or going to meetings.
Executing and Account Management Strategy
I tell sales professionals, “You are the CEO of your own territory.” It is your responsibility to hold your own feet to the fire to make sure you’re doing the right things to maintain and grow your accounts.
It’s more than relationship building; although, that’s a large piece of it. Stepping back, you have to diligently work your plan month by month and year by year. You also have to look at the competition as part of your overall plan. You want to find out how often competitors visit » Continue Reading.
As the “quiet Beatle” George Harrison sang, “If you don’t know where you’re going, any road will take you there.” But if you have a destination, you need to plan your route. The same is true with sales account management. To keep your book of business growing smoothly while you focus on all of your other sales activities, you need to invest the time to plan properly.
I think about account management often because the subject comes up with every group of sales professionals in every training class, no matter what company they’re from. It was a big part of my 20-year sales career, and it should be part of every seller’s world. The reason it doesn’t get a lot of attention is because most companies are focused on driving new revenue and bringing new customers through the door.
Know What Business You’re Losing
What account management does is work to make sure the new customers coming in the front door are not slipping away out the back door. It is both an art and a science, as sales professionals strive to keep their existing accounts and ideally, grow them, while also adding new accounts. What I ask sales professionals is this:
“Do you know what the retention rate is in your territory?”
Too many give me deer-in-the-headlights looks as they confess:
“No, my company doesn’t share that information with me.”
To this, I reply:
“You should always know what » Continue Reading.