Strategic account management

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STRATEGIC ACCOUNT MANAGEMENT

APRIL 2009

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SalesPromotion

• Business promotion is to run a

successful business as practicing scales is to playing piano well.

• Each company should keep its growth phase

wisely.

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What is strategic account management?

• Strategic Account Management is a systematic process for managing key interactions and relationship with critical accounts.

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Who are strategic customers?

• These customers generate 80% of the revenue/ profit.

• We call such customers co-destiny accounts.

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STRATEGY

• Keeping Canadian Strategic Accounts

• Keeping BUT ALSO EXPANDING US

Strategic ACCOUNTS:.

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Recently, Frequency and Monetary (RFM) Analysis

The customers who have purchased recently, have made more purchase and have made larger purchases are more likely to respond to our offering than other customers who have purchased less often and in smaller amounts.

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Implementing SAM in Bethel International

• Establish an “account management program”.• Bethel must maintain it’s financial performance

while reinvesting the way it serves its most critical customers.

• The entire company (order, customer service, shipping, accounting, inventory departments) needs to understand how critical these strategic customers are and start to own them.

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Planning Details

• Planning Horizon: 1 to 3 years

• Sales Promotion : – creative discount, financing, delivery, service

options

• Primary account responsible: Account Manager

• Number of Accounts per Manager: 1 to 5

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ACCOUNT B ACCOUNT C

ACCOUNT A

ACCOUNTMANAGER

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Skills of Account Manager Sales or general manager skills

Strategic thinking about long term relationship

Excels in ability to influence

Deep understanding of customer’s

business and its suppliers’ business

Needs and their psychology

Planning special sales program, Monitoring these accounts and

Giving feedback regularly to President of company

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Duties of SAM(1)

• Strategic Account Managers (SAM) are hunters but within their assigned account, continually working to increase account shares.

• They also must manage those account relationships, and be accountable for ongoing and long-term financial growth.

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Duties of SAM(2)Understanding Customers

• The customer’s Organization

• The customer‘s customers

• The customer’s competitors

• The customer’s partners

• Bethel’s competitors’ for this account

• Customers’ preference for purchasing

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Primary Concern of SAM

• Profitability

• Short and Long term Revenue

• Resolve accounts’ business challenges

• Increase share of customer purchase

• Creative discount, financing, delivery and service options

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Effective Time

• Once Strategic account management begins, it usually takes 3 to 12 months to understand the targeted customers’ business challenges well enough to co-create value and sell strategic solutions.

• Monitoring plan and feed backing is a continuous process

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CONCLUSION

• PLANNING FOR SA IS VITAL FOR EVERY COMPANY GROWTH.

• FINDING NEW SA IN USA SHOULD BE THE NO.1 PRIORITY AT THIS TIME.

• EVERY EMPLOYEE SHOULD HANDLE 3 TO 5 SA.

• Level of available inventory and inventory turning should match with customers' needs.

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CONCLUSION(2)

• Use every outgoing piece of paper , and every electronic document as business promotion.

• Finding ways to exceed the customers’ expectation.

• Deliver on your customer service promises.

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Q & A

• Questions?