N e w A g e S t r a t e g i c S e l l i n g

Dr Wilfred Monteirowww.synergymanager.net

H O W O F T E N H AV E YO UH E A R D T H E S E W O R D S ? ? ?

KEY Account Sellingversus Small Account Selling

Key Account Small AccountA series of meetings over an extended

period of time with many different peopleFace-to-face meetings between just the

salesperson and a prospect

Works directly with the ultimate decisionmaker

No direct access to the ultimate decisionmaker

Works directly with the ultimate decisionmaker

No direct access to the ultimate decisionmaker

Size of the sale is larger Todays indent

Time horizon for purchasing differs Now or never attitude

Closing techniques can sometimes cost thesalesperson business

Closing techniques may be effective

Objection prevention Objection handlingLonger sales cycle Shorter sales cycle

If the investment in key account management isto be made (and it is not insignificant), a numberof elements must be in place. Key among them is that those salespersons whomanage and participate in the key sales teamsmust be thoroughly grounded in the regimen andprocess of strategic selling. If they are not, the exercise of KAM will producemarginal results at best and be wasteful ofcorporate resources because KAM is "graduatelevel" strategic selling.

If the investment in key account management isto be made (and it is not insignificant), a numberof elements must be in place. Key among them is that those salespersons whomanage and participate in the key sales teamsmust be thoroughly grounded in the regimen andprocess of strategic selling. If they are not, the exercise of KAM will producemarginal results at best and be wasteful ofcorporate resources because KAM is "graduatelevel" strategic selling.

D o n ' t a t t e m p t K AMw i t h o u t a f i r m l y i n t e r n a l i z e d

s t r a t e g i c s e l l i n g r e g i m e ni n p l a c e a n d w o r k i n g .

KAM- the STEPS of strategic selling Establishing a full understanding of the customer - Thisincludes size, success, vision of the future, corporatepersonality, culture and needs. Developing a detailed knowledge base, fab by fab, throughoutthe world - The team must collect information on the installedbase of the supplier's products and that of key competitors tounderstand the supplier's competitive position. Developing a broad strategic plan- Building a significantposition within a customer takes time, tenacity, andconsistency in movement toward objectives.

Establishing a full understanding of the customer - Thisincludes size, success, vision of the future, corporatepersonality, culture and needs. Developing a detailed knowledge base, fab by fab, throughoutthe world - The team must collect information on the installedbase of the supplier's products and that of key competitors tounderstand the supplier's competitive position. Developing a broad strategic plan- Building a significantposition within a customer takes time, tenacity, andconsistency in movement toward objectives.

6(c) copyright 2010 Dr Wilfred Monteiro www.synergymanager.net

In a nutshell, strategic selling isa process combining all theclassic selling skills with adynamic understanding of theindividual styles of key players,the forces driving customerdecisions, the customer'scorporate culture, thecustomer's strategies with itscustomers, and the long-termand day-to-day needs at boththe corporate and fab level.

In a nutshell, strategic selling isa process combining all theclassic selling skills with adynamic understanding of theindividual styles of key players,the forces driving customerdecisions, the customer'scorporate culture, thecustomer's strategies with itscustomers, and the long-termand day-to-day needs at boththe corporate and fab level.

Among the benefits of strategic selling toequipment and materials suppliers are: Extension of strategic vision andunderstanding of customer goals. Establishment of strong businessrelationships. Establishment of technology and businessfeed-back loops to increase the likelihoodof having the supplier's corporatetechnology and product road mapsunderstood by customers, and vice versa. Increasing credibility among customers asa long-term player in the equipment andmaterials industry.

Among the benefits of strategic selling toequipment and materials suppliers are: Extension of strategic vision andunderstanding of customer goals. Establishment of strong businessrelationships. Establishment of technology and businessfeed-back loops to increase the likelihoodof having the supplier's corporatetechnology and product road mapsunderstood by customers, and vice versa. Increasing credibility among customers asa long-term player in the equipment andmaterials industry.

Key Account Management - best practice actions

Set accountobjectivesSet accountobjectivesReview account

Analyze AccountAnalyze Account

Rank accounts on Improvement Potential indexRe-deploy resources to highest potential channels/accountsTarget category management efforts to accounts with capability

Understand accountrequirements/ needs/capabilities

Plan account actions tofix problem P&L lineitems

Target account goals/accountability for profitimprovement

Match strategy toimprovementpotential

Tie account team incentives tocustomer metrics

Reflect balanced scorecard inaccount metrics

Set accountobjectivesSet accountobjectives

Plan accountstrategyPlan accountstrategy

Take plannedactionTake plannedaction

Review accountReview account

Understand accountrequirements/ needs/capabilities

Plan account actions tofix problem P&L lineitems

Target account goals/accountability for profitimprovement

Match strategy toimprovementpotential

Include customer in account planning processDevelop both internal and customer targetsTie actions/events to improvement opportunities

Monitor performanceagainst tactical plan

Hold account teammembers accountable

9(c) copyright 2010 Dr Wilfred Monteirowww.synergymanager.net

Generally, the steps are: Establishing a full understanding of the customer - Thisincludes size, success, vision of the future, corporatepersonality, culture and needs. Developing a detailed knowledge base, fab by fab,throughout the world - The team must collectinformation on the installed base of the supplier'sproducts and that of key competitors to understandthe supplier's competitive position. Developing a broad strategic plan- Building a significantposition within a customer takes time, tenacity, andconsistency in movement toward objectives.

Generally, the steps are: Establishing a full understanding of the customer - Thisincludes size, success, vision of the future, corporatepersonality, culture and needs. Developing a detailed knowledge base, fab by fab,throughout the world - The team must collectinformation on the installed base of the supplier'sproducts and that of key competitors to understandthe supplier's competitive position. Developing a broad strategic plan- Building a significantposition within a customer takes time, tenacity, andconsistency in movement toward objectives.

With the strategic foundation in place, the action plan evolves through aseries of carefully planned steps: Understanding the customer's organizational structure - Gainingcommitment from a customer begins with the identification of truedecision makers and influencers. This is an ongoing and dynamic processbecause customer personnel assignments change, new information isgarnered, new relationships are created and the decision track is subtlymodified. As contact increases, a major requirement is to analyze personalcharacteristics of key players. Their personality makeup creates uniquedecision making dynamics. Determining the power structure - As key customer personnel profilesevolve, potential influence relationships can be defined. From these, apower chart, rather than an organizational chart, is created, whichdelineates the "real" flow of decision making. Developing, assigning and monitoring tactical plans - This allows the teamto develop individual tactics for that customer.

With the strategic foundation in place, the action plan evolves through aseries of carefully planned steps: Understanding the customer's organizational structure - Gainingcommitment from a customer begins with the identification of truedecision makers and influencers. This is an ongoing and dynamic processbecause customer personnel assignments change, new information isgarnered, new relationships are created and the decision track is subtlymodified. As contact increases, a major requirement is to analyze personalcharacteristics of key players. Their personality makeup creates uniquedecision making dynamics. Determining the power structure - As key customer personnel profilesevolve, potential influence relationships can be defined. From these, apower chart, rather than an organizational chart, is created, whichdelineates the "real" flow of decision making. Developing, assigning and monitoring tactical plans - This allows the teamto develop individual tactics for that customer.

It is at this point that many otherwise effective plansdie. If results are not monitored, targets set and theentire process reiterated, it will not succeed. Sometimes these programs are even driven fromoutside the company at the outset in order to establishmomentum free from corporate politics. Successful key account management demands suppliermanagement commitment, resources, and time. It is aprocess, not an event! For the equipment industry, the rewards for successare large, and the penalties for failure long lasting - andpossibly fatal.

It is at this point that many otherwise effective plansdie. If results are not monitored, targets set and theentire process reiterated, it will not succeed. Sometimes these programs are even driven fromoutside the company at the outset in order to establishmomentum free from corporate politics. Successful key account management demands suppliermanagement commitment, resources, and time. It is aprocess, not an event! For the equipment industry, the rewards for successare large, and the penalties for failure long lasting - andpossibly fatal.

"The Seven Keys toManaging Strategic Accounts"

Let's take a look at what are the aspects that experts recommends as optimal key accountbehaviour:- Learn how to meet and interact with your customers' top decision makers.- Never take your competitors for granted: they'll usually surprise you.- Set realistic goals, and be prepared for the stress of last-minute problems or changes thatwill come with no warning.- Get to work before everybody else does.- Know your customers' needs and concerns intimately.- Help customers even in areas unrelated to your product or service.- Only bend the rules when it's necessary to service the customer.- Remember that competitors may sometimes offer better service.- Make sure your customers know when a problem has been solved and that they know youknow.

"The Seven Keys toManaging Strategic Accounts"

Let's take a look at what are the aspects that experts recommends as optimal key accountbehaviour:- Learn how to meet and interact with your customers' top decision makers.- Never take your competitors for granted: they'll usually surprise you.- Set realistic goals, and be prepared for the stress of last-minute problems or changes thatwill come with no warning.- Get to work before everybody else does.- Know your customers' needs and concerns intimately.- Help customers even in areas unrelated to your product or service.- Only bend the rules when it's necessary to service the customer.- Remember that competitors may sometimes offer better service.- Make sure your customers know when a problem has been solved and that they know youknow.

13(c) copyright 2010 Dr Wilfred Monteirowww.synergymanager.net

is a nationally acclaimedstalwart in the field ofbusiness management withan illustrious career spanningover 30 years

He is a consultant and advisorto Board of Directors ofleading companies &Chambers of Commerce;

a management trainer of highrepute who has conductedover 2250 seminars in Indiaand abroad in areas ofbusiness strategy, marketing& organization development.

a Visiting Professor topremier managementinstitutes and staff trainingcolleges throughout India.

Dr WILFRED MONTEIRO is a nationally acclaimedstalwart in the field ofbusiness management withan illustrious career spanningover 30 years

He is a consultant and advisorto Board of Directors ofleading companies &Chambers of Commerce;

a management trainer of highrepute who has conductedover 2250 seminars in Indiaand abroad in areas ofbusiness strategy, marketing& organization development.

a Visiting Professor topremier managementinstitutes and staff trainingcolleges throughout India.

14website: www.synergymanager.net

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Dr WILFRED MONTEIROplease view the blogspots I have developed for my participant ongoing learning

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15website: www.synergymanager.net

(c) copyright2010 Dr Wilfred

Monteirowww.synergyma

nager.net

CONTACT US

Dr Wilfred MonteiroTELE : 91 22 9819843927

EMAIL: wm@synergymanager.net

Website: www.synergymanager.net

SYNERGY MANAGEMENT ASSOCIATESsales force development expertise since 1993

SYNERGY MANAGEMENT ASSOCIATESsales force development expertise since 1993

OUR AREAS OF CLIENT SERVICE INCLUDE: Formulating Sales Strategic Plans Designing of Sales Systems & Process Auditing Sales Processes & Practices Leadership & Salesforce Development Key Customer-Account Management Improvising Salesforce Motivation & Engagement Installing Performance Measurement Systems Building Customer Centric Organizations