Managing and developing your accounts is the key to sustainable business. As such, sales people and account managers need to be able to create strategic business relationships with their clients in order for the clients to remain loyal to them and the company. Sadly, most sales people and account managers treat their relationship with their clients as transactional instead of strategic. In this short “Nine-Grid Key Account Management” training course, we will focus on creating strategic business relationships with clients by understanding how to manage their time and activities to better serve their key accounts. By the end of this training course, participants will be able to: 1. Select and rank their key accounts 2. Create strategies to handling the different levels of key accounts 3. Manage time and activities for each type of key account

1. Nine-GridKeyAccount
Management
Copyright©2019
Boom SanAgustin
SalesEdgePro

2. So,whatarethefunctionsofaKeyAccountManager?

3. Let’sfindout.

4. ACTIVITY
List Your Job
Functions

5. Beforewecontinue,let’slookatyourfunctionsasKeyAccountManagers.

6. TheSixAccountManagementFunctions
Account
Management

7. TheSixAccountManagementFunctions
Account
Management
Plan&
Manage
Activities
Account Managersshould:
• Planandscheduleactivities
• Havegoalsandobjectivesforeach
clientvisitorsalesactivity
• Prepareforallpossiblescenarios

8. TheSixAccountManagementFunctions
Account
Management
Maintain&
Build
Relationship
Plan&
Manage
Activities
Account Managersshould:
• Maintainafriendlybusiness
relationshipwithclients
• Developpartnershipswithkey
clients
• Rankandprioritizekeyaccounts

9. TheSixAccountManagementFunctions
Account
Management
Improve
Market
Position
Maintain&
Build
Relationship
Plan&
Manage
Activities
Account Managersshould:
• Makesuresalestargetsareexceeded
• Workonbuildingtheircompany’sbrand
• Trytomaketheirproductsbecomethe
preferredproductsinthemarket

10. TheSixAccountManagementFunctions
Account
Management
Monitor&
Report
Results
Improve
Market
Position
Maintain&
Build
Relationship
Plan&
Manage
Activities
Account Managersshould:
• Observeandtakeaccountofall
relevanteventssurroundingtheir
clients’business
• Understandhowclientactivitieswill
affecttheircompany’smarketposition
• Monitorandanalyzecompetitor
activities
• Reportallrelevantactivitiestotheir
management

11. TheSixAccountManagementFunctions
Account
Management
Negotiate&
Coordinate
Deals
Monitor&
Report
Results
Improve
Market
Position
Maintain&
Build
Relationship
Plan&
Manage
Activities
Account Managersshould:
• Understandclients’needsandgoals
• Offersolutions(usingtheirproducts)to
helpsolvecustomerissuesor
concerns
• Managediscountsandpricingwhen
negotiating
• Createwin-winscenariosthatbenefit
bothyouandyourclients

12. TheSixAccountManagementFunctions
Account
Management
Generate
NewLeads &
Accounts
Negotiate&
Coordinate
Deals
Monitor&
Report
Results
Improve
Market
Position
Maintain &
Build
Relationship
Plan &
Manage
Activities
Account Managersshould:
• Generateleadsthathavenotyet
beentappedbythecompany
• Workonturningnewleadsinto
customers
• Rankandmanagecustomers

13. Now,plotwhatyou’ve
writtenonthe
corresponding
function.

14. Whathaveyounoticed?

15. Let’stalkaboutthecommonmistakes ofAccountManagers.

16. Forthis,we’llneedtheAvengers!

17. ACTIVITY
Assemble the
Avengers

18. Whatarewedoingwrong?
Those withthehighestpotential are
notdesignated askey
Too manyaccountsaredesignatedas
key
Toooften keyaccountsare
transactionalratherthanstrategic

19. Whatshouldwebedoing?
Knowyourcustomer'sbusinessandbusinessculture
Understandwhythecustomeravailedofyourservice
Considerhowyourcustomerusesyourservice
Findoutwhatyourcustomerthinksaboutyou
Findouthowyoustack-upagainstyourcompetitors
Learnaboutyourcustomer'sdecision-makingprocess

20. Now,wehavetodetermine thecriteriaforclassifyingourkeyaccounts.

21. Therearetwocriteria neededto
determine yourkeyaccounts.
Theclient’s performance
Theclient’s potential

22. Thefirstthingwehavetodetermineis performance.

23. Particulars Score(1-10) Weight Grade
TOTAL:
SalesVolume
Profitability
LoyaltytoOurCompany
60%
20%
10%
=100%
AccountManager’sRating 10%
DeterminingCustomerPerformance

24. Particulars Score(1-10) Weight Grade
TOTAL:
SalesVolume
Profitability
LoyaltytoOurCompany
60%
20%
10%
7
8
5
AccountManager’sRating 10%6
DeterminingCustomerPerformance

25. Particulars Score(1-10) Weight Grade
TOTAL:
SalesVolume
Profitability
LoyaltytoOurCompany
60%
20%
10%
5
7
8
3.00
1.40
0.80
5.80
10%AccountManager’sRating 6 0.60
DeterminingCustomerPerformance
X =

26. Clients withascorefrom 8.00 to10.00
Clients withascorefrom 5.50to 7.99
Clients withascorefrom 1.00to 5.49
Ourclients’ performancerankingsareasfollows:
DeterminingCustomerPerformance

27. Now,rankallyouraccountsonperformance.

28. ACTIVITY
Determine Client
Performance

29. So,howmanyA,BorCclients doyouhave?

30. 10%oftheCustomersusuallyachieve
around50%ofthevolume
30%oftheCustomersusuallyachievearound
40%ofthevolume
60%of theCustomersusuallyachievearound10% ofthevolumeC
B
A
TheThreeTierCustomerPerformanceConcept

31. Now,let’s determineyourclients’ potential.

32. Particulars Score(1-10) Weight Grade
TOTAL:
Customergrowthtrendvspreviousperiod
Customerannualpotentialforgrowth
Ourcurrentshareofthecustomer'srequirements
20%
20%
30%
=100%
Ourabilitytoincreaseourvolumesaleswiththeclient 30%
DeterminingCustomerPotential

33. Particulars Score(1-10) Weight Grade
TOTAL:
Customergrowthtrendvspreviousperiod
Customerannualpotentialforgrowth
Ourcurrentshareofthecustomer'srequirements
20%
20%
30%
Ourabilitytoincreaseourvolumesaleswiththeclient 30%
7
8
7
4
DeterminingCustomerPotential

34. Particulars Score(1-10) Weight Grade
TOTAL:
Customergrowthtrendvspreviousperiod
Customerannualpotentialforgrowth
Ourcurrentshareofthecustomer'srequirements
20%
20%
30%
Ourabilitytoincreaseourvolumesaleswiththeclient 30%
7
8
7
4
1.40
1.40
2.40
6.40
1.20
DeterminingCustomerPotential
X =

35. Clients withascorefrom 8.00 to10.00
Clients withascorefrom 5.50to 7.99
Clients withascorefrom 1.00to 5.49
Ourclients’ “potential”rankingsareasfollows:
DeterminingCustomerPotential

36. Now,rankallyouraccountsonpotential.

37. ACTIVITY
Determine Client
Potential

38. So,howmany1,2or3clients doyouhave?

39. Onceyoudetermine the“Performance” and“Potential”
scores,youcan,now,plotthem ona9-gridtable.

40. 3 2 1
A A3 A2 A1
B B3 B2 B1
C C3 C2 C1
Potential
Performance
9-GridAccountRanking

41. 3 2 1
A A3 A2 A1
B B3 B2 B1
C C3 C2 C1
Potential
Performance
9-GridAccountRanking

42. Let’s,now,calculate howmuchtimewehaveforoursalesactivities.

43. Details No.of Days
Numberofdaysperyear 365
Weekends (104)
Trainings (4)
Vacationleaves (15)
Holidays (12)
Seminars(technical) (2)
Sickleaves(estimated) (2)
Numberofavailabledaysforselling: 225
Multiplybynumberofworkhours: x9
TOTALNUMBEROFHOURSFORALLOCATION: 2,025
TimeAllocation Table

44. Details No.of Hours
Totalnumberofworkhourstobeallocated 2,025
Lunchandbeaks (337.5)
Traveltime (450)
Office Meetings (90)
Administrativework (225)
Numberofavailablehoursfor actualselling: 922.5
TimeAllocation Table

45. TimeAllocation Table
Considerallocating apercentage
oftimefor:
Phonecalls toexisting clients
Visits toexisting clients
Cold callstoprospects
Visits toprospects

46. Now,it’stimetoallocateourtimetooursalesactivities.

47. ACTIVITY
Allocate Time for
Your Key Clients

48. 3 2 1
A A3 A2 A1
B B3 B2 B1
C C3 C2 C1
Potential
Performance
9-GridAccountRanking

49. Now,weneedtoplanourAccountManagementstrategies.

50. So,howdowemakeAccountManagement strategies?

51. ACTIVITY
Case of the Zombified
Actors

52. Let’s,now,makeourKeyAccountManagement strategies.

53. 3 2 1
A
A3
Maintain
A2
Intensify
A1
Intensify
B
B3
Maintain
B2
Optimize
B1
Intensify
C
C3
Reduce
C2
Reduce
C1
Optimize
Potential
Performance
CreatingAccountManagementStrategies

54. Now,let’s makethosestrategies.

55. ACTIVITY
Create Account
Management
Strategies

56. Nine-GridKeyAccount
Management
Copyright©2019
Boom SanAgustin
SalesEdgePro