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Companies should be selling more to their existing customers. Yet, year after year, too many don’t, resulting in increased burden and expense to acquire new clients.

Consistent, predictable account growth is usually hindered by organizations inadvertently creating barriers to cross-selling and up-selling, such as:

Compensation is not aligned for people to focus on growing their accounts

Lack of time or resources are available to the account manager to grow the account

Accountgrowthpotentialisnotproperlyidentifiedsoaccounts are improperly assigned to the wrong people

Too many accounts spread account leaders too thin

Lack of account planning frameworks and templates

Pressure to focus on short-term results vs. long-term growth

Accountleadsdon’tknowenoughabouttheotherofferingsof the organization to know how they would be valuable to their client

Account leads don’t trust other areas of their organization, or are territorial about their pieces of business

Management doesn’t bring the right people together to explore ways they can add more value to clients

Existing personnel don’t have the skills to fully explore the valuetheycanoffertoclientsinternally

Conversely, high performing organizations excel at organic growth (i.e. generating incremental revenue by selling additional products or

Strategic Account Management (S.A.M.) Plans

services beyond the initial client engagement). They do so by doing at least two things better than their mediocre peers:

1. THEY UNDERSTAND THE PRINCIPLE OF VALUE CREATION

They know the more clients value you, and what you bring to the table, the more they’ll buy from you by allowing you to expand the relationship.Valueisdefinedasthemonetaryworthofsomething;that is, whether and how much someone will pay for something. Value creation hinges on honestly answering these questions:

Why does the client buy from you now?

Why are they willing to pay what they pay?

What else would they be willing to buy from you, and at what price?

2. THEY EMPLOY EFFECTIVE STRATEGIC ACCOUNT MANAGEMENT (S.A.M.) PLANS

Designedtoassessadditionalvaluefirmscanbringtotheiraccounts.S.A.M.Plansallowforinternalandexternalcollaborationwithspecificpersonnel to co-create value in innovative ways. All good S.A.M. Plans analyze, strategize, and communicate additional areas of valueacompanycanoffertheiraccountsandincludethefollowingthree components:

i. Relationship Evaluationii. RightPlayersFulfillingDistinctRolesiii. Regularly Scheduled Planning Meetings

S.A.M.Plansensureyourfirms’offeringsresonate with your clients and the current reality they’re dealing with. They help you more effectivelydemonstratehowyourclient’spainpointscangoaway,or how your solutions provide an attractive enough upside, that they’ll be open minded enough to consider your solutions. And whenitcomestimetoshareincrementalofferings,S.A.M.Planshelp

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you differentiate and make it easier for you to stand out from the otheravailablesubstitutes.Andfinally,whenyou’rereadytocloseadeal, S.A.M. Plans inform how you can mitigate the client’s risks by helping them believe that you can deliver on your promises. You’ll be better able to substantiate via process-framed case studies, pricing models, and/or warranties.

...What Buyers Say

Weak Resonance

DifficulttoSubstitute

Able to Substantiate ➟ “I don’t need it.”

Strong Resonance

Easy to Substitute

Able to Substantiate ➟ “What’s your best

price?”

Strong Resonance

DifficulttoSubstitute

Not Able to Substantiate ➟ “I can risk it.”

I. Relationship EvaluationAsk most salespersons or account managers about the strength of their core client relationships and they’ll say, “Great. Rock solid. Very deep.”

However, too often they are commenting on how much rapport or trust they feel they have with the client instead of through the lens of business value the client receives.

More enlightened questions include:

“ Can your team call top management and get through easily?”

“ If your relationship with the account ended, how difficultwouldthemajorityofpeoplethereperceiveitto be to replace you?”

“ Would the account themselves describe their relationship with you as trivial, worthwhile, important, or essential?”

The companies that grow accounts are analytical about relationship analysisandspecificabouttheirrelationshipgrowthstrategies.Theyview relationships less on how much they like each other and more on the business value of the relationship as the client perceives it. Specifically,theymapoutthreeareas:

1) 3x3 Relationship Mapping

Client’s Boss

Client Peer Client Client Peer

Client Subordinate

2) Personality Profiling 7Personatypes,eachrequiringdifferentsalesapproaches:

Decisive Danielle – Code name “Driver” Decisive Danielle is directive. She solves problems in a decisive, active, and assertive manner. She’s proactive, results driven, and wants to win. If you’re dealing with Danielle, she might seem pushy and overbearing, and may lack tact. She’s probably pretty demanding and wants things to happen her way and in her time-frame.

Collaborative Claire – Code name “Consensus” Collaborative Claire is the yin to Decisive Danielle’s yang. Collaborative Claire likes to solve problems with other people. She’s deliberative, tactful, diplomatic, and adaptable. In a world where people canbeprettyblunt,it’slikelyyou’llfindhertoberespectful of you and everyone else.

Relationship Renee – Code name “Friend” Relationship Renee is interactive. Social interaction and engagement are important to her. She’s enthusiastic, a creative problem solver, a team player, and (of course) a relationship-builder. She likes the big picture, and she’s not shy about taking up a lot of air time in discussions. A question or two will really get her going.

Skeptical Steve – Code name “Guardian” Skeptical Steve is the yin to Relationship Renee’s yang. Steve is introspective. He’s a reserved critical thinker. Skeptical Steve won’t embellish and doesn’t want you to do so either. It takes a while for Steve to develop trust with people, which can be great for you if youputinthetimeandeffort.(Bytheway,Stevedoesn’tmindbeingcalled a skeptic. He’s proud of the realism he brings to the table.)

Analytical Al – Code name “Spreadsheet” Past success is an indicator of future success. The way it’s been done, established methods, and data are important to Analytical Al. This doesn’t mean he won’tleadthepackanddosomethingnew,itjusttakes a lot of processing for Al to take a leap of faith. Al’s cautious. He follows rules, procedures, and established standards. He’s a comprehensive problem solver because he examines from all thedifferentangles.

Innovator Irene – Code name “Maverick” Innovator Irene is the yin to Analytical Al’s yang. When it comes to rules, procedures, and how things were done before, Irene couldn’t care less. While Al might say, “Past success is an indicator of future success.” Irene would say, “What got us here won’t get us there.” Innovator Irene develops ideas and strategies independent of rules. She’s informal and solves problems creatively. Boundaries are for testing, pushing, and crossing…that’s what Irene says. (Anyone who has a 3 year old has met this side of Irene.)

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3) Relationship Strength Matrix

RELATIONSHIP STRENGTH PARTNERSHIP PERCEPTION OF

VALUERELATIONSHIP LOSS EFFECT

REACTION TO REPLACEMENT

COMPETITIVE BIDDING

REPLACE US BY THEMSELVES

5 - Essential “Trusted Partner”

Proactive strategic co-development (partnership with

power)

Breakthrough Catastrophic difficulties Fights

Rare or “through the motions”

bidding, typically shape procurement

No

4 - Important “Strategic Suppliers”

Proactive input (access to power) Major Majorchallenges Resists

Sometimes sole source, sometimes

“shape” bidding process

Unlikely

3 - Worthwhile “Preferred Supplier”

Reactive input (some access to

power)Some Some challenges May resist

Typical - sometimes

preferred with early knowledge

May listen to overtures

2 - Trivial “Supplier”

None (trivial executive

access)Trivial to none No challenges Unlikely to resist

Typical - rarely have early knowledge

Likely

1 - No Relationship N/A N/A N/A N/A N/A N/A

0 - Peer / Negative Avoidance of interaction Negative Benefitsoutweigh

challenges Positive Avoidance of including you Yes

II. Right Players Playing the Right PositionOften account leaders are what we call Relationship Leads. They’re historically experts in a particular area ofproductsorservicesthecompanyoffers.Theyoftensellalotof—anddoagreatjobwith—theareathattheyhave historically sold. Their relationships with at least a few stakeholders at accounts are solid. However, they frequently don’t:

Drive the account-growth process— they’re commonly happy with the business they have (even if they wouldn’t say it)

Seetheopportunitieswheretheircompanycanoffervalueoutside of their personal area of expertise and comfort zone

Doagoodjobbuildingaccountplans

Stay on top of implementation (if they do happen to build an account plan)—they don’t act on action plans consistently, don’tfindnewbuyingcenters,createnewopportunities,andif they do, they don’t win them often enough

Thekeyistonottrytofindonepersonwhocandoeverythingwell,but rather to make sure everything that needs to get done gets done well by assigning an appropriate team.

There are six distinct strategic account management roles that must be played to maximize account success. These are:

Relationship Lead

Entrepreneur

Innovator

Technical Expert

ProjectManager

Skeptic

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of below-average performers struggle with cooperation and collaboration among various groups at their companies.

36%(Peoplemayplayseveralroles;rarelyisanyonerole“dedicated”.Also, people can play these roles for multiple accounts. The key is to foster a culture of collaboration).

RELATIONSHIP LEAD

This role is the embedded player on the account who creates and strengthens relationships. This person defends against competitor inroads by staying abreast of how the client’s business is performing andhowyourfirmisdeliveringonyourpromises.WhenagoodRelationship Lead is missing, you don’t penetrate accounts deeply, andrepeatbusinesssuffers.

ENTREPRENEUR

Entrepreneur leads the charge for maximizing business inside the account. Entrepreneurs are itching for growth. Many companies think their Relationship Leads can be molded into Entrepreneurs but that rarely works. Good entrepreneurs are more focused on what’s possible than who or how something can be sold.

INNOVATOR

This is the visionary who understand the marketplace and creates new capabilities. Innovators are internal evangelists for the breakthrough change your company can create for clients. The higher up you go within a client’s executive-level, the more this kind of vision and energy is appreciated. Otherwise, clients lose interest and you end up working a level, or two, or six lower in their organizations.

Three Optional (or Outsourced) Roles:

TECHNICAL EXPERT

Technical Expert is the specialist / analyst / technician who has relevantdepthofknowledgeinspecificareasandtheabilitytosolveproblems and facilitate discussions in technical areas.

When the Technical Expert is missing, your possibilities are limited and ideas get shot down when “it can’t be done” trumps “we can figureitout.”

PROJECT MANAGER

TheProjectManageristheorganizeroftheprocessthathelpstheRelationship Lead optimize the revenue possible from the account. GoodProjectManagergetsnecessaryresourcesinplace,formulatean actionable, appropriately thorough account plan, and Tracks actionsandoutcomesWhentheProjectManagerismissing,deliverables may not consistently be run on time or on budget.

SKEPTIC

Skeptic is the foil, the reality checker, and the devil’s advocate for all the big ideas your team develops to maximize your account success. Skeptic makes sure assumptions are questioned, strategies and plans are tested and vetted (and thus strengthened), and only the most promising opportunities move forward. When the Skeptic is missing, you move plans forward before weeding out the bad ideas. Of the six, Skeptics are most commonly outsources.

III. Regularly Scheduled Planning MeetingsCompanies that don’t have regularly scheduled S.A.M. Plan meetings are clearly not committed to employing a systematic approach to account growth success. Particularlyorganizationsjustbeginningwillrequiresignificanttimetolearnnewbehavioursandunlearnsome bad habits. Change isn’t easy, and only time and committedeffortwillmakethedifference.

Effective S.A.M. Plan meetings focus on:

Outputs: Outcomes of each stage

Actions: Core set of activities designed to produce those outputs

Concepts: Methods and conceptual models that the SAM team must understand to execute each stage

Rising to the Occasion: Understanding what high performers do that sets them apart from the rest

Each meeting Agenda should include the following talking points:

What is the annual revenue target and how are we trending?

What is the overall measure of our relationship with this account? What does it need to be?

What do we need to do to get to a stronger relationship level?

What are our overall strengths with this account?

What vulnerabilities exist with our current relationship with this account?

Across all buying centers in this account, where can they benefitfromourexistingofferings?

What will surprise and delight this account?

How are we unseating competitors, or preventing their inroads?

Who’s responsible for executing these strategies, and when will key actions be completed?

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There’s no question that high performers in strategic account managementachievehigherrevenuegrowth,profit,andcustomersatisfaction than the rest. The right training, coupled with the right advisoryservices,canhaveasignificanteffectonyoursuccess.AtCult, we help build and execute strategic account management initiatives that achieve the greatest possible success. We’ll work with you to build the processes and skills needed to penetrate, expand, and protect strategic accounts.

We help clients succeed by: Build account plans that actually work and result in revenue

growth, deeper partnerships, and overall account success.

Lead value discovery sessions internally for the purpose of value creation, connection, and co-creation.

View needs from the customer’s perspective to strengthen and deepen your ability to create value for accounts.

Assess SAM success and determine whether they need to staythecourse,pivot,orotherwiseadjustthestrategy.

STRATEGY RESEARCH ACTION PLAN EXECUTION REVIEW

OUTPUTS

Strategic accounts selection

Account goal possibilities

Opportunity targets

Key Performance Indicators (KPIs)

Account Plan (start)

Account core team

Account Plan

Account extended team

Relationships deepened

Opportunities - Created - Expanded - Captured

Competitors neutralized

Account Scorecard

Action plan adjustments

ACTIONS

Charter team

Facilitate Value Discovery Session - Internal

Establish success metrics (KPIs)

Begin Account Plan

Form core account team

Gather data to inform strategy

Complete Account Plan

Tighten plan with “VC Test”

Launch plan into action

Value discovery and co-creation meetings

Alignment activities and organization adapting

Core S.A.M. Selling activities

Results tracking

Short-term action adjustment

Shift back to strategy

CONCEPTS

Maximizing account growth

Business strategy

Value proposition R|D|S

Team building

Process and meeting facilitation

Systems thinking

Conceptual thinking

Account plan componentspecifics

Account research principles

Internal research principles

Aggregating & synthesizing data into big picture

Action plan creation process

Resource allocation

Projectmanagement

Internalinfluence

Plan presentation “VC Test”

Core S.A.M. Selling concepts

InfluencePrinciples

Conceptual Thinking

Systems Thinking

Facilitation

Success analysis

Actionadjustment

Strategy pivots and reallocations

Communication

RISING TO THE

OCCASION

Pro-activity

Vision

Urgency

Value

“A” players

Not accepting “I don’t know”

Research with accounts

Excitement creation

Influence

Resource maximization

Value co-creation and partnership execution

Company change for accounts

Internal trust

Building enterprise relationships

Relationship embedding

Core S.A.M. principles

Not skipping review

Driving continuous improvement

Driving strategy with review

Based on validated research from Mike Schultz, John Doerr, and Mary Flaherty, Benchmark Report on High Performance in Strategic Account Management (Framingham: RAIN Group, 2012).

HEADQUARTERS - 1025 10 St SE, Calgary, AB T2G 3E1 Phone: +1.403.228.7949 Email: info@cult.ca