Who are your best customers? Are you doing everything in your power to keep these customers? Could you grow more business with these customers?
If you’re a business-to-business salesperson, chances are that you have a small group of core customers who provide a significant percentage of your personal sales volume. Our research has shown that these customers generally fall into two categories:
- Key Accounts: Typically, you've targeted these accounts because they currently buy your products/services, and you need to put particular focus on them because they have the potential for large or additional sales volume.
- Strategic Accounts: These accounts are critical, because they currently represent around 30% of your total sales revenue. Visibility in these accounts might also be key to your success in a segment. For example, General Motors would be a strategic account for Goodyear and Michelin.
Think about your regular customers and your most satisfied customers – are they key or strategic accounts? Both key and strategic? It’s possible they’re both.
Now think about the customers you typically spend the most time with. Are they key or strategic accounts?
Key and strategic customers have unique requirements that the best salespeople monitor regularly and seek to fulfill. You can’t just assume that these customers will keep buying from you – don’t ever forget that your top accounts are your competitor’s top prospects! Keeping the sales volume you’ve earned from these customers takes attention to detail, discipline, and a consistent approach – it’s hard work, and even the best salespeople make mistakes. Let’s look at a few of the most common ones:
- They don’t understand what a key (or strategic) account is. Let’s say you have a big customer who buys regularly from your organization – so regularly that their purchases total 20% of your sales volume. Is this a key (or strategic) account? You bet. But what about a customer who has placed big orders once or twice in the last few years? Is this a key (or strategic) account? Could be…but might not be. What if they would place more big orders if they knew you sold a particular part? How do you find out?
- They don’t use a system for managing their key and strategic accounts. Selling to key accounts requires careful planning and an organized approach. You can’t (or shouldn’t) just stop by with doughnuts…or lunch. That positions you as a friendly delivery person, not as a strategic resource who can partner with customer personnel to get the results they need.
- They think that key account management is all about relationships. Fixing immediate business pain is not based on relationships...it’s based on competency and results. Relationships get built based on fixing ongoing, meaningful problems. How do you do that? You follow an orderly, non-manipulative sales process that allows you to uncover what your customers will buy, when they will buy, and how they would like to buy from you.
- They jump the gun…forgetting that business relationships begin only after an organization has bought from you and has become a fanatically pleased customer (and not before). Just because you want an account to be a key account does not make it so! What do you do to ensure that your new customers grow into zealots for your company and its products or services?
- They inadvertently neglect some lower-profile key or strategic accounts. There’s a famous quote attributed to Napoleon: “To be outmaneuvered? Yes. To be surprised? Never.” If you are truly involved with these clients, you won’t ever be surprised. If the client is dissatisfied with your product or service for some reason, you’ll know about it. And if the client has received an intriguing proposal from your competitor, you’ll know about that, too.
- They invest too much time, energy or resources on accounts that don’t stack up well against others. Every account isn’t going to become a key account. As you look into your current client list, ask about each client:
- Does this client have a need for additional products, solutions, or processes that my company offers?
- Does my contact at the firm have the legitimate authority and financial ability to buy or commit to upgraded or additional offerings?
- Does this client have a sense of urgency about making additional buying decisions?
- Does this client trust me and my organization through proven availability, predictable delivery, high levels of service, ease of purchase, and commitment on your part?
In short, do you have a proven track record as a vital business ally…as someone who will promise a lot and deliver even more?
- They don’t plan carefully for every interaction they have with the account. In one key aspect, key account selling is NO different from regular selling: it is possible to be overconfident! You should prepare yourself for every interaction you make with your key account contacts as carefully as you did the first interaction you ever had. You must ensure that – every time you call or visit your customer – you know the current status of any and all orders, the current opportunities and challenges your customer faces, the current strategies and approaches of key people of influence in the account, and what your goals for the account are.
- They don’t learn everything they can about their key and strategic accounts’ customers. If you can discover what your customer’s customers are all about, you will be much more likely to find solutions that will help your customers sell better to their customers! If you can show your prospect or customer that you truly understand the issues that keep them up at night, the opportunities they have for growth, and the people they are trying to sell to, you’ll be seen as a knowledgeable resource and more likely to be perceived as a true partner in business.
- They don’t provide vital, valuable and meaningful information for their key contacts every time they meet. Whether you are meeting with the CEO or a shipping clerk for your key or strategic account, it is absolutely in your best interest to be perceived as a value resource for them. Maybe you are noticing trends in the industry that you could share with the CEO. Maybe you saw a new shipping software application that impressed you – tell the shipping clerk and his/her supervisor about it. Ask thoughtful questions of everyone you interact with in your client accounts. If you provide meaningful information for them, they will be much more likely to do the same for you...it’s the principle of reciprocity.
- They slack off. Only by being 110% dependable will you earn the right to achieve preferred vendor/supplier status. Don’t just sell your product or service...Make your key contacts look good. Ensure that every order gets filled quickly and exactly as requested. Make sure invoices and packing slips are correct and easy to read. Follow up on every order – no matter how small. It can be amazing how much “little” things make a big difference!
- They forget to educate their customers about impending upgrades, new product introductions, research and development plans, etc. Your key and strategic accounts should never have surprises. They should be able to rely on you and your company to keep them informed about how your products or services are changing for the better as well as when and why prices may change. Assure them that you (personally) will help them navigate any changes your company is making. Educating your customers about planned changes in advance not only positions your company well, but it allows your customers to anticipate how to apply your products or service in new, different ways.
- They forget to have fun with key account personnel. Key and strategic account management is serious business, and you need to be perceived as a professional who is helping your customer meet important business objectives. But there are times that simply being yourself, having fun and relaxing can be a great way to cement a growing bond between you and your key account personnel. Invite key or strategic account personnel to your company’s holiday functions. Make a point of asking them to dine with you at a restaurant next time you are in town. Call them when their favorite sports team wins (or loses!). None of this replaces the professional interactions you should be having regularly with them, but it should be cementing the personal relationship you have with key personnel. And after-hours or off-site time spent with key account personnel can be not only rewarding but give you significant insight into each individual’s personality, approach, and desires.
What’s the Magic Word?
Did you know that different types of prospects have different “trigger words” that provoke their emotional buying response? Why’s that? Because an entrepreneur, a CEO and a purchasing manager all have very different buying goals.
Want to know exactly what to say no matter what kind of a decision-maker you’re facing? Get this handy reference and learn the specific words that will trigger your prospect’s buying response:
http://brooksgroup.com/products/books/perfectphrases.htm
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