Why Account Management?

Most everyone we talk to intellectually understands the value of focusing resources on your current account base. However, most companies have a “hunter” mentality and place more emphasis on acquiring new customers than “farming” existing customers. Breaking through this cultural barrier is challenging. So why should a company shift focus towards its existing account base?

• Most companies today are working in extremely competitive environments and dealing with limited resources. In order to maximize success, companies must focus resources and efforts at those opportunities that have the best chance of high returns – and in most cases, those opportunities reside in their current account base.
• The old 80/20 rule stated that typically 80% of a company's business came from 20% of its customers. We found that in some companies. 50% of their revenue came from 5% of their customers. To a company with “ a lot of eggs in one basket”, losing a key account could be financially devastating.

Seizing opportunity and balancing risk – two good reasons to implement a formal account management program.

WHAT to do?

Through researching account management best practices utilized by companies across multiple industries, Akina has developed list of “critical success factors” – components that must be part of any account management program:

• Treat the account management program as a major initiative. Assign ownership to a senior executive and develop a financial and operating plan. Make sure the program has high visibility throughout your company. Measure the results on a monthly basis.
• Instead of creating a mission to “maximize” revenue from the account, focus on developing a “trusted advisor” relationship with the customer. Reaching “trusted advisor” status typically means:
• More single sourced opportunities – less competition (lower cost of sales)
• Less emphasis on price (higher margins)
• Long term commitments (visibility into future revenue streams)
• Create an account management program playbook that includes:
• Account plan template
• Team structures with defined roles, ownership, and expectations
• Communication plans that define when and how internal and external (client) communications will happen
• Program governance (rules of engagement)
• Realize that unique skill sets are required to develop high impact client relationships. Create a profile of a successful account manager. Benchmark current account managers against the “optimal” and develop a program to increase skill levels.

HOW do you successfully manage an account management program?

Managing a successful program happens at two levels – the overall initiative level and at the account level.

Each account team should go through a four-step process to ensure optimal results:

Education – teach the team the basics of account management

1. What is account management?
2. Why is it important?
3. What are the key components of our specific program?
4. What results are we expecting?
5. How do you become a “trusted advisor”?
6. Understand what is “high value activity”

Select the accounts

• Develop criteria for enlisting an account in the program
• Justify why this specific account should be part of the program

Set-up the account team and plan

1. Define team members, roles, expectations, ownership
2. Facilitate the creation of the plan with all key team members present
   • Account intelligence (organization, top priorities, etc)
   • Specific goals
   • Strategies (where to focus, what to sell, value that can be delivered)
   • Specific plans (who will do what, when)
   • Communications plan
     • Internal daily, weekly, quarterly communication
     • Define formal and informal client communication

Manage on a daily basis

1. Track issues and actual results versus plan. Make adjustments accordingly.
2. Know when to escalate

The senior executive owner should focus efforts in two areas:

1. Specific account knowledge and support
   • Peruse weekly status reports and respond to issues, requests for resources
   • Attend and contribute to quarterly review sessions
   • Personally solicit program feedback from customers
2. Corporate visibility and support
   • Keep executive team apprised of program progress
   • Initiate and drive corporate programs that will strengthen the program

Account management programs, like any worthwhile venture, require persistent effort. Creation and successful implementation / management of such a program will shift efforts of your staff from “reactionary mode”, where issues surface that create a negative impression and need to be managed, to a “pro-active mode”, where potential issues are anticipated and managed before they have an impact. This new mindset will allow your people to spend their day on high value activity – actions that directly contribute to desired results. And as an executive, you will have better control over your business – and over your own destiny.

For more information on Akina's Phase Four Account Management Program please contact:

Mike Stankus
Managing Partner
978-927-2208
mike@akina.biz

Back to : High Impact Returns from Account Management

Other Whitepapers:

• Technology Sales People – The New Success Profile
• Diagnosing Your Revenue Generation Issues
• Building a Client Service - Minded Staff
• High Impact Returns from Strategic Account Management
• How to Steer Your Firm to Greater Revenues when you're not in the Driver's Seat
• Sales Tip – Building credibility through "Discovery" Letters
• Selling to Multiple Decision Stakeholders
• Firm Leadership's Role in Retaining and Growing Clients
• The Pursuit Drill ™: Improve Your Sales Team's Ability to Close Deals

Back to Top