Managing major accounts is a long-term process, it takes time:

We must recognize that we are in the Management of Large Accounts for the long term. It takes time to manage a large account and we will only get a return on our investment on time if we can have a long-term result. In some of the organizations we’ve worked with this creates tension because the entire culture is about creating a short-term sales outcome where product and profit are the primary drivers and measures of success. We should not underestimate the challenge that key account management can present to corporate culture. It emphasizes the relationship more than the product, the profit more than the volume, and the team more than the individual, the long term more than the short term. At the same time, it is necessary to recognize the short-term practical realities of business life.

One of the best ways to manage this tension is to have someone act as a mentor, conscience, or guide for the account manager and account team. They do not participate in the daily management of the account, but are invited to view and comment on the main proposals and presentations. Their primary role is to participate in reviewing the long-term plan every few months to ensure the relationship is as productive as possible and reflects the values ​​of the organization as a whole.

The role of the lead account manager is to be responsible for the overall relationship. They influence everyone involved in the account to ensure a coordinated and synchronized approach. The lead account manager is responsible for writing the account plan, obtaining agreement and commitment from the team, and then monitoring implementation.

Major account management involves relationships, not just a mechanical approach:

Under this heading, we need to discuss three main aspects of important account management.

o The importance of relationships in Key Account Management.

o The complexity of relationships in Key Account Management.

o Mapping relationships in Key Account Management.

Importance:

In Key Account Management it is essential that we manage both people and processes. Of course, we must get the price of the product right. We have to be excellent in administration. Our customer service and product range must be strong. But “people buy from people” and “we are in a people business.” Managing the complex array of relationships within a major account is difficult and demanding, but our ability to manage relationships will define whether or not we remain successful.

Complexity:

In a reactive sale there is only one relationship: the one between the seller and the buyer. In large accounts the situation is much more complex. There are often contacts at many levels and in many places. In a main account, we have identified 1,000 relationships between the account team of ten people and people who represent the client. But it’s not just a numbers issue, it’s often a policy issue. Some contacts don’t want us to talk to people in other departments or at different levels. It may also be that the complexity is caused by the range of products. Users of one product rarely talk about the specifications of another product. In any complex relationship, we will like some people more than others. This is not to mention the interdepartmental tensions. All of these things make primary account relationships complex, and we must acknowledge their complexity.

Mapping:

If relationships are important and if relationships are complex, then it is essential that we find a way to map, analyze, plan and monitor those relationships. In recent years we have found that a chess-based approach allows for a very practical way of identifying key issues.

If we can confidently answer these questions and communicate our thinking to the entire account team simply and clearly, we are halfway to success. This approach has provided people from a wide spectrum of organizations with a common language and way of working.

Can only be done with selected customers:

The last word of this definition is selected. Choosing the right key accounts is vitally important for three main reasons:

o We do not have the resources to treat each customer as a key account.

o Not all customers want to be treated like a key account.

o Screening allows us to prioritize our activities according to our overall business objectives.

Many organizations rank their key accounts simply by the size of the year’s sales, but the organizations we see that are really making progress in key account management take other factors into account. They also make sure everyone knows who the main accounts are and why they are important accounts. It is important to be rigorous with the selection criteria you use! You will also need to apply some form of weighting to reflect your priorities. The fact that a primary account does not meet all of your criteria will not disqualify it from being a primary account. You will only need to score higher in other areas to qualify.

Based on this score, organizations can rate their accounts. They can be Premier, 1st and 2nd Division like a football league, or Gold, Silver and Bronze like Olympic medals or First Class, Club Class, Economy and Standby like an airline. The airline analogy is good because on a flight there may be people in Standby who are completely satisfied with the service they receive, even though they know that there are people who receive “better” service in Club Class. Rating your accounts is not a matter of giving better or worse service to some customers. It is about giving all its customers an adequate service. When we select our top accounts and consistently deliver what we promise, we are managing our accounts professionally and efficiently.

In short: key account management success factors:

oh Successful role development:

o Effective working relationships with other team members.

o A continuous drive to improve the productivity of the account team.

o Management commitment to the role of the account team with opportunities for career advancement.

o Reinforcement of the role through authorized career structures, job descriptions and basic training programs.

oh the key skills:

o Understand the financial and legal requirements of the account.

o Understanding of the business objectives of the company.

o Understanding of the company’s commercial policies.

o Build high levels of product knowledge.

o Understanding of the client’s business objectives.

o Identify decision makers.

o Understand the customer’s purchasing strategy.

o Evaluate competitive activities.

o Put together an account development plan.

o Ensure effective processing of sales orders.

o Build the right levels of revenue and profitability.

oh basic skills:

or Delegation

o Interpersonal skills.

or Consulting.

o Control and financial analysis.

o Project management.

o Human management.

o Initiative and creativity.

secondary skills:

For example, industry knowledge, competitive knowledge, product knowledge, etc.

Success factors in key account development:

oh The stages of a long-term process

or presale.

o Contract negotiation.

o Implementation / Delivery.

or Review.

or Operation.

oh Objectives for an account team

o Ensure that the client is presented with a consistent and professional image of your Company as a business partner.

o Ensure a long-term business relationship with the client as a basis for business growth.

o Penetrate the client organization and decision-making unit creating new opportunities that can be exploited to accelerate account growth.

o Understand and document, on an ongoing basis, the direction and strategic business organization of client organizations.

o Provide the company’s senior management team with information on the long-term growth potential in the client’s market sector and the critical success factors to exploit it.

o Ensure that the company’s solutions are technically sound and based on a proper understanding of current requirements and reinforce the customer’s perception of the benefits of the company’s market approach.

o Ensure that the total resource of the company is delivered in a manner that meets the requirements of the client and supports the objectives of the chart of accounts.

conclusion:

An effective primary account management strategy depends on selecting your primary accounts wisely, creating a strong, consistent, and flexible way of working with both primary accounts and other clients, and then implementing the plan in a disciplined, effective, and efficient manner.

One of the successes of the Major Account Management program has been the creation of common models and language that facilitate discussion and planning across units and departments. It has also stimulated our clients’ commitment to planning key long-term relationships. Major account management has many implications for individuals, departments and the company as a whole. It will always be demanding, but if done well, it will be very rewarding.

Copyright © 2006 Jonathan Farrington. All rights reserved