strategic account planning - what separates the great from the weak

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Strategic Account Planning – What separates the GREAT from the rest

The Last Crusade of Account Planning

2

Johnson & Johnson

Rosneft

Emirates NBD

Lukoil

Tesco

UnitedHealth Group

Aviva

National Bank of Abu Dhabi

Prudential Financial

Siam Commercial Bank

Bank of Montreal

Alcatel-Lucent

DnB NOR

NEC

US Bancorp

Metalurgica Gerdau

Ricoh

Toyota Industries

PICC Property & Casualty

KB Financial Group

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Accounts byRevenue in Millions


Top 1%

Next 4%

Next 15%

Bottom 80%

Today’s Language Lesson

Strategic AccountKey Account

Global Account Major AccountThe Big Dog’s


Sales Executive Council Survey


Top 1%

Next 4%

Next 15%

Bottom 80%

800 Customers 29% Dollars

200 Customers43% Dollars

3,000 Customers21% Dollars

16,000 Customers7% Dollars

Customers = 20,000Total Revenue = $

700,000,000

Typical Customer Segmentation


Today’s Agenda – Great Strategic Account PlanningWhat does ‘Good’ like and is it worth the bother?

•Why should we bother? It’s too Hard!•Ok, so I should do it, but it feels broken•How do I fix it and make it good, great?


The Good News!


Strategic Suppliers have Advantages

Forrester Research


Strategic Account Revenue GrowthYear over Year

2009 2011 20130%2%4%6%8%

10%12%14%16%

12%14%

10%

6%8% 7% Strategic Accounts

Other Accounts

SAMA – 2014 Key Trends Report


From the Buyers Perspective – How many Strategic Vendors/Partners do you have?

22%

22%

17%

13%

19%1 to 55 to 1010 to 1515 to 20More than 20

Forrester Research: Q3 2012 Global Sourcing &Vendor Management Priorities Survey

81% of CompaniesHave 20 or less


The ‘Not S

o’

Good News!


Account Managers say“Percentage of My customers that say we are a strategic partner”

1% to 25%

26% to 50%

51% to 99%

100%

10%

12%

61%

17%


Effectivity of Selling to Existing Customers

Source: CSO Insights Sales Performance Survey

Revegy Proprietary & Confidential

Business Value of Effective Strategic Account Planning & Management

Relationship Win Rate Pct of AcctMgrs Making Quota

Level 5 – Trusted Partner 54% 70%

Level 4 – Strategic Contributor 51% 66%

Level 3 – Solutions Consultant 50% 63%

Level 2 – Preferred Supplier 48% 62%

Level 1 – Approved Vendor 44% 57%


Average


Good vs. Great

55.6% of high performing reps reported they regularly focus on account planning versus

41.2% of poor performers.

16

SiriusDecisions Research


Importance/Quality of Account Planning

Source: CSO Insights 2012 Sales Performance Survey

88%

12%

Importance

ImportantNot Impor-tant

8.3%

36.8%54.9%

Account Plan Quality

Exceeds Expec-tationsAdequateNeeds Im-provement


Importance/Quality of Account Planning


88%

12%

Importance

ImportantNot Impor-tant

8.3%

36.8%54.9%

Account Plan Quality

Exceeds Expec-tationsAdequateNeeds Im-provement

Percentage of Account Plans Effectively Executed

11%SAMA Global Survey 322 Strategic Account Managers/Executives


Impact of Effective Account Planning

Poor Adequate Good

42.9%48.1%

60.4%

Win Rate


Poor Adequate Good

84.4%

90.8%

99.0%

Corporate % of Quota


What’s Broken in Account Planning?- The Management View


What’s Broken in Account Planning?- The Plan Itself


Company Background

Executive Summary

Current Financial Situation Organization Chart

Historical Product Spend

Buying Centers


What’s Broken in Account Planning?- The Team


What’s Broken in Account Planning?- The Customer


What’s Broken in Account Planning?


Items that correlate to Strategic Account Profitability

SAMA – 2014 Key Trends Report


Account Planning – Process Best Practices

Critical Success Factor - Process

Value

1. Prioritize/Segment Accounts

Focus on best potential accounts

2. Common Process, Tools & Language

Drive Scalability

3. Account Reviews/Coaching Drive behavior change, measure improvements over time

4. Continuous Collaboration Customer and Team Alignment


Step 1 - Begin with the End in Mind

What is your objective?

- Retention- Company Revenue Growth- Vertical Penetration- Competitive Differentiation

30

31

Johnson & Johnson

Rosneft

Emirates NBD

Lukoil

Tesco

UnitedHealth Group

Aviva

National Bank of Abu Dhabi

Prudential Financial

Siam Commercial Bank

Bank of Montreal

Alcatel-Lucent

DnB NOR

NEC

US Bancorp

Metalurgica Gerdau

Ricoh

Toyota Industries

PICC Property & Casualty

KB Financial Group

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Tier 1 Accounts

Tier 2 AccountsNot so great

Step 2 – Choose Wisely, Grasshopper!

Relationship & Fit

Pote

nti

al V

alu

e

Relationship & Fit- Current Level of Trust- Key Stakeholder

Relationships- Strategic Fit of Two

Companies

Potential Value- Business Growth- Past / Current Revenue Size- Potential Opportunities2014 Current Trends Report - SAMA


Step 3 – If you don’t know where you are going, any road will get you there


Common Account Planning Process with Coaching


90%3-5 Years

Revenue Performance

60%

39% Top Per-formersUnder Per-formers

46%Today

CxO’s Plan to Collaborate More

CEO Says Collaboration is a Top Priority

Step 4 - Collaborate

IBM 2014 CEO Survey


IBM CEO Survey on Customer Collaboration

“You have to ‘marry with yourCustomers and share experiences,Good or bad, to gain trust”

CEO Major Professional Services Firm

“In the next few years we wantTo build deep, strategic relationshipsWith our customers, enterprise-To-enterprise relationships whereThe ‘customer is for life.’”

Paul Graham, CEO, DHL Supply Chain, Singapore


Top Internal Barriers to Strategic Account Development

Corp and SAM Strategy Misaligned

Lack of Senior Executive Support

Internal Collaboration Challenges

Inadequate Corporate Support

Global vs. Local Conflict

Too Much Short Term Focus

Internal Silo Conflict

16%

18%

19%

21%

34%

53%

54%

Colla

borat

ion


Collaborate Internally – Especially with Marketing

38

Account status

Account opportunities

Account objectives

Account strategy

Marketing adds…Sales has…

History, customer feedback, product/service portfolio

Data on optimal combinations, propensity to buy

Prioritization of accounts and program development

Programs to support goal attainment


But what goes in the plan?


Account Plan – Best Practice Elements

Critical Success Factors – Account Plan Elements1. Understand the Customers’ Goals and how they measure success2. Identify and Nurture Key Relationships

3. Leverage Customer Value Scorecards

4. Build collaborative, team-based action plan

5. Measure the results


Plan Element 1 – Seek First to UnderstandCollaborate with the customer around their goals


Plan Element 2 – What relationships do we have and what relationships do we need?


Element 3 - Scorecard Value from the CUSTOMERS’ perspective


Element 4 – Develop a Collaborative Roadmap with the customer


Element 5 – Measure SuccessAutomation, not Excel!


Account Planning – Process Best Practices

Critical Success Factor - Process

1. Prioritize/Segment Accounts

2. Common Process, Tools & Language

3. Account Reviews/Coaching

4. Collaborate

Critical Success Factors – Plan Elements

1. Understand the Customers’ Goals and how they measure success

2. Identify and Nurture Key Relationships

3. Leverage Customer Value Scorecards

4. Build collaborative, team-based action plan

5. Measure the results

Business Value of Strategic Account Planning

Source: CSO Insights Sales Performance Survey Global Survey of over 1500 companies

Ability to Create Account Plans & Prioritize as related to Forecast Deal Outcome

Plan Exceeds Expectations

Plan Meets Expectations

Plan Needs Improvement

Better competitive differentiation 96% 75% 53%

Better at selling value/avoiding discounting 88% 68% 66%

Relationship Level 3 or higher 78% 66% 51%










Average










TrustedPartner


A complimentary offer for you.

As our thanks for attending this webinar, we will send you a complimentary copy of the:

2015 Revegy Account Planning Template (Published in March)

Email: Michelle at [email protected] Subject line: Account Planning Template

Thank you for joining us!

mailto:[email protected]

strategic account planning - what separates the great from the weak

Sales

strategic vendorspartners

good news

total revenue

accounts byrevenue

dollars200 customers43

buyers perspective