"We require hunters, not farmers!" The allure of the solitary salesperson, bravely forging ahead to charm their way into the C-suite, is merely a myth.The thrill of landing a new logo, the excitement of “the hunt”, and the added time urgency leads to all sales resources being trained on it. Many sales and revenue organizations are extremely focused on lead generation and chasing new pipeline. Quotas and compensation plans are aligned to it, and the vast majority of the marketing budget is allocated towards these hunting activities. Existing accounts, as a result get deprioritized, often left in the hands of the delivery or operations team. After all, the deal has been “closed”, and the customer “acquired”, so it's just a matter of executing and collecting invoices. The typical account executive (AE) checks in once a quarter with the customer, and goes on with their routine. The customer is on autopilot. As time passes, there are several events that can impact the relationship. Current engagements may end, key customer contacts and executive sponsors move, get promoted, or even worse, leave the company. Competitors announce new initiatives, economic and business events affect the customer’s strategy, and the list goes on.
In many B2B organizations, the account executive (AE) is left to their own ways and means to nurture the account. Most often, there is no playbook for managing accounts. If it does exist, it's a one size fits all approach. There is no tiering of customers based on size or revenue, no clear mapping of the relationships and the org structure, let alone a solid understanding of the customer’s business and their short and long term priorities. More often than not, the goal is to just maintain the revenue stream, and not gain a holistic understanding of the account.
If account management is done in a disciplined and organized fashion, it can unlock new revenue at a faster clip than traditional sales hunting. As this is for an existing customer, there is no need to qualify them, one only needs to validate that the opportunities are real. As an existing vendor, most legal documentation would already be in place. The result is much shorter and more efficient sales cycles.
Organizations that understand the potential of this align resources, training and technology towards it. Account Management is a distinct discipline that is part of the Sales organization, but its remit spans across operations, customer service and finance. They understand and appreciate that the goal of account management is to put the customer first, and that the opportunities follow as a result of managing the customer and the relationship with a set of best practices. The resultant process and function is distinct from opportunity or lead based sales.
Some of the key activities that are undertaken by best in class account management teams are:
By taking a proactive approach to existing accounts, a clear set of goals and activities are established for each account. Furthermore, by tiering accounts into Good/Better/Best, one can manage the level of attention and detail that is required for each type of account. For example, a “Best” level customer would entail a quarterly in-person meeting, whereas for other tiers a video call would do. Knowing what the activities and goals are beforehand, puts the entire account team in the driver’s seat, and this reflects often in the customer calling the AE with new opportunities, or for that matter, advice or feedback on their relationship.
How often does an account plan get created at the beginning of the fiscal year, to be never looked at again? In many instances, the account’s knowledge and relationships rest with the AE, and it becomes a single point of failure. The AE leaves the company, and all the information leaves along with them. The lack of a team approach towards managing an account relationship leads to fragmentation of tasks, missed opportunities and overall miscommunication. In many cases, someone on the ground, say from the operations or customer service team, is more privy to the “cooler talk” and can understand if that requires to be bubbled up to the right person within the company. Good AEs have their ears to the ground, listening to any and every signal that can result in them doing a better job with the account. They would not just focus their attention outward towards the customer, but also inwards, looking for trusted “insiders” who can give them insights and nuggets of information that can result in a new opportunity.
In today's digital landscape, leveraging technology is paramount for optimizing account management. CRM systems centralize customer data, offering comprehensive insights into customer interactions and preferences. Incorporating AI and machine learning enables predictive analytics, empowering account managers to anticipate needs and address issues proactively. By embracing tailored technology solutions, organizations streamline processes, enhance efficiency, and deliver personalized experiences, fostering long-term customer loyalty. Instead of building an annual account plan, with technology the AE can maintain a living version of it that constantly updates all stakeholders of the account’s details and its overall health.
Furthermore, a successful key account management strategy demands ongoing evaluation and refinement. Establishing key performance indicators (KPIs) aligned with organizational goals enables teams to gauge effectiveness. Metrics such as customer satisfaction scores, revenue growth, and retention rates offer insights into key account relationships. Soliciting feedback from customers and internal stakeholders identifies areas for improvement, fostering a culture of continuous enhancement. Embedding this into the technical platforms and tools, puts these metrics front and center for both the AE and management teams, thereby creating a feedback loop to ensure that every account is getting the desired attention and quality. By adapting to evolving customer needs, smart organizations maintain a competitive edge in the market.
Untapped Potential in Existing Accounts: Existing accounts are often overlooked for new leads; prioritizing them can unlock significant revenue streams.
The Importance of Account Management: A disciplined approach to nurturing relationships with existing customers is crucial for revenue growth.
Play Offense, Not Defense: Allocate resources for proactive account management; shorter sales cycles and increased customer satisfaction.
Key Activities in Account Management: Account planning, relationship mapping, communication, and uncovering new opportunities are essential.
Technology Integration for Enhanced Key Account Management: Utilize CRM systems and AI for personalized experiences and predictive analytics.
Measuring Success and Continuous Improvement: Establish KPIs, gather feedback, and adapt strategies to evolving customer needs for ongoing success.
