Key Account Management

Key Account Management
Key Accounts Management Strategic Customer Partner Process (SCPP) 1
Training Outcomes › At the end of the session, all participants will be able to: 1. Share common definition on poultry key account management 2. Share common functions of key account manager 3. Classify key accounts 4. Share team best practices for successful key account management 5. Understand and apply the 3 phases & 6 steps of the “SCPP map” for key account management approach 2
› Key account management essentials – The key account definition and classification – The key account management definition, objectives and concept – Functions of key account manager › The strategic customer partner process – Phase 1: analysis › Step 1 - gather account data › Step 2 - analyze key player roles and priorities – Phase 2: vision › Step 3 - identify needs and opportunities in the account › Step 4 - define goals, strategies and initiatives – Phase 3: actions › Step 5 - create action plan › Step 6 - track key performance indicators 3
Key Account Definition Key account is an existing or potential source of business which is; 1. Big (in terms of business potential) 2. Complex (in terms of organizational complexity) 5
Classification of Key Accounts Key accounts are classified according to 1. Company performance at the key account level 2. Potential; products and Key account
Key Accounts Classification Criteria Company Performance at the Key Account Level Particulars Score (1-10) Weight Grade Sales Volume Profitability KA Loyalty to Company Account Manager Rating Total 7
Cont. … Particulars Score (1-10) Weight Grade Sales Volume 60% Profitability 20% KA Loyalty to Company 10% Account Manager Rating 10% Total 8
Cont. … Particulars Score (1-10) Weight Grade Sales Volume 5 60% Profitability 7 20% KA Loyalty to Company 8 10% Account Manager Rating 6 10% Total 9
Cont. … Particulars Score (1-10) Weight Grade Sales Volume 5 60% 3.00 Profitability 7 20% 1.40 KA Loyalty to Company 8 10% 0.80 Account Manager Rating 6 10% 0.60 Total 5.8 10
Rating › Class A: score from 8 to 10 › Class B: score from 5.5 to 7.99 › Class C: score from 1 to 5.49 11
Three Tier Customer Performance Concept 50% 40% 10% Sales Volume 12 Class A 10% of Customers Class C 60% of Customers Class B 30% of Customers
Key Accounts Classification Criteria Potential; Products and Key Account Particulars Score (1-10) Weight Grade Customer growth Vs previous period growth Customer annual potential growth Our current share of customer requirements Our ability to increase our sales volume with the client Total 13
Cont. … Particulars Score (1-10) Weight Grade Customer growth Vs previous period growth 20% Customer annual potential growth 20% Our current share of customer requirements 30% Our ability to increase our sales volume with the client 30% Total 14
Cont. … Particulars Score (1-10) Weight Grade Customer growth Vs previous period growth 7 20% Customer annual potential growth 7 20% Our current share of customer requirements 8 30% Our ability to increase our sales volume with the client 4 30% Total 15
Cont. … Particulars Score (1-10) Weight Grade Customer growth Vs previous period growth 7 20% 1.40 Customer annual potential growth 7 20% 1.40 Our current share of customer requirements 8 30% 2.40 Our ability to increase our sales volume with the client 4 30% 1.20 Total 6.40
Rating › Class 1: score from 8 to 10 › Class 2: score from 5.5 to 7.99 › Class 3: score from 1 to 5.49 17
9 Grid Account Ranking A3 A2 A1 B3 B2 B1 C3 C2 C1 3 2 1 A B C Performance Potential
9 Grid Account Ranking A3 A2 A1 B3 B2 B1 C3 C2 C1 3 2 1 A B C Performance Potential
Key Account Strategy A3 Maintain A2 Intensity A1 Intensity B3 Maintain B2 Optimize B1 Intensity C3 Reduce C2 Reduce C1 Optimize 3 2 1 A B C Performance Potential
23 Key Account Management A strategic business approach with the objective of ensuring long-term and sustainable business development through profitable partnerships with strategically important customers
Objectives of KAM 1. Maximizing the sales velocity. 2. Increasing average deal size with each customer. 3. Minimize price erosion by developing specific process to build and manage accounts. 4. Increasing customer loyalty and customer retention. Thereby, be value partners to our customer 24
The Key Account Management Concept › Many people focus on sales goals › Some people also focus on strategic goals › Strategic account managers focus on value goals and allow the sales and strategic goals to support these value goals 25
27 Key Account Manager Generate New Leads & Accounts Negotiate & Coordinate Deals Monitor & Report Results Improve Market Position Maintain & Build Relationshi p Plan & Manage Activities 1. Plan and schedule activities. 2. Have goals and objectives for each client visit or sales activity. 3. Prepare for all possible scenarios. 1. Understand clients need and goals. 2. Offer solutions to help solve customer issues or concerns. 3. Manage payment terms, pricing and discounts when negotiating. 4. Create win-win scenarios that benefit both company and clients.
28 Key Account Manager Generate New Leads & Accounts Negotiate &Coordinat e Deals Monitor & Report Results Improve Market Position Maintain & Build Relationshi p Plan & Manage Activities 1. Maintain friendly business relationship with clients. 2. Develop partnerships with key clients. 3. Rank and prioritize key accounts 1. Observe and take account of all relevant events surrounding their clients business 2. Understand how client activities will affect their company’s market position 3. Monitor and analyze competitor activities 4. Report all relevant activities to their management
Key Account Managee Generate New Leads & Accounts Negotiate &Coordinat e Deals Monitor & Report Results Improve Market Position Maintain & Build Relationshi p Plan & Manage Activities 29 1. Make sure sales and collection targets are exceeded. 2. Work on building company brand. 3. Try to make company products become the preferred in the market. 1. Generate leads that have not yet been tapped by the company. 2. Work on turning new leads into customers.
Mistakes of Key Account Managers 1. Accounts with the highest potential are not designated as key. 2. Too many accounts are designated as key. 3. Too often accounts are transactional rather than strategic. 30
What Should We be Doing 1. Know your customer business and business culture. 2. Understand why the customer benefits of your service. 3. Consider how your customer use your product. 4. Find out what your customer thinks about you. 5. Find out how you stack-up against your competitors. 6. Learn about your customer’s decision-making process. 31
Why do we need a strategic approach to KA? 1. To support the long-term goals of strategic accounts. 2. To ensure the long-term financial success. 3. To ensure optimal penetration, maintenance and growth of strategic accounts.
Long term relationships are not measured by how long you have been calling on the account but by how far forward you are looking together into the future
Building Long Term Relationship 1. Change the way you do business today with identified key customers. 2. Develop relationships that are more mutually supportive. 3. Learn more about what motivates your customer and the issues they face. 4. Understanding the needs of your customer’s customer. 5. Compare customer objectives to our account objectives and look for areas of alignment. 6. Develop strategy for targeting specific people in accounts over time. 7. Strategically allocate your resources to your key accounts. 37
A proven method for linking company goals to customer goals. A future oriented strategic approach. What is Strategic Customer Partners? Resulting in optimized win-win outcomes.
Step 1 Gather account data Step 2 Analyse key player roles and priorities Step 3 Identify needs and opportunities in the account Step 4 Define goal, strategies and initiators Step 5 Create action plan Step 6 Effectively execute and monitor results Phase 1: Analysis Know and understand the account Phase 2: Vision Seize opportunities and strategy Phase 3: Actions Effectively execute and monitor results Revisit – Review – Revise as needed
Step 1 Gather account data Step 2 Analyse key player roles and priorities Step 3 Identify needs and opportunities in the account Step 4 Define goal, strategies and initiators Step 5 Create action plan Step 6 Effectively execute and monitor results Phase 1: Analysis Know and understand the account Phase 2: Vision Seize opportunities and strategy Phase 3: Actions Effectively execute and monitor results Revisit – Review – Revise as needed
Phase 1: Key Account Analysis Know and Understand the Account 1. Step 1: – Gather account data 2. Step 2: – Analyze key player roles and priorities 43
Phase 1: Analysis Step 1: Gather Account Data 44 Key Account Data KA Profile Disease Manageme nt Company Product Portfolio Competitor Activity What is the decision chain? What issues does the account has to face in his activity?  Type of production and volumes  Type of breed/Population  Farms locations  Technical office location  PG% - Future expansion/growth  Age and weight of broilers  Slaughter/live market  Usual performances  Key issues for local Poultry Industry (IBD - Coccidia - IB - Mycotoxin - Clostridia)  Key account interest in production cost? Quality of products? Branding? Differentiation?
Cont. … 45 Key Account Data KA Profile Disease Manageme nt Company Product Portfolio Competitor Activity What is the decision chain? What issues does the account has to face in his activity?  Vaccination program  Prophylactic feed additives  Routine treatment in drinking water  Biosecurity program
Cont. … 46 Key Account Data KA Profile Disease Manageme nt Company Product Portfolio Competitor Activity What is the decision chain? What issues does the account has to face in his activity?  Products that suit key account disease management  Product potential  Existing and prospected sales
Cont. … 47 Key Account Data KA Profile Disease Manageme nt Company Product Portfolio Competitor Activity What is the decision chain? What issues does the account has to face in his activity?  What are the main competitors at the account?  What are the strategies and tactics used by the competitors in their products and services?  What are their market share and sales growth?
Cont. … 48 Key Account Data KA Profile Disease Manageme nt Company Product Portfolio Competitor Activity What is the decision chain? What issues does the account has to face in his activity?  Technical team?  Managers?  External consultants  Prescribers?
Cont. … 49 Key Account Data KA Profile Disease Manageme nt Company Product Portfolio Competitor Activity What is the decision chain? What issues does the account has to face in his activity?  Margin?  Recognition?  Flock performance?  People education?  Technical issues?  Cost of labor?  Trading?
Phase 1: Key Account Analysis Step 2: Analyze Key Player Roles and Priorities › Analyze the key players within the strategic customers and how they influence decisions; 1. Ratifier 2. Decision-Maker 3. Influencer (A,B,C) 4. Gatekeeper 5. Coach 52
Ratifier • People at very high levels in the organization who have low involvement in the decision process. • Ratifiers desire low involvement in the decision.
Decision-Maker • He is the person who makes the final decision.
Influencer (A,B,C) • A person who have some input into the decision based on their function or expertise. • Influencer can be categorized for our purposes as A, B, or C level (high, moderate, or low)
Gatekeeper • People who do not have the authority to make strategic decisions but who can block your access to those who can (purchasing agents, legal personnel, administrative assistants, etc...)
Coach People who are; • knowledgeable about the company. • Credible within their organization. • Willing to meet with you • Able to provide insight information and direction.
What are the Commitment Levels That a Key Player Can Have in an Account Organization? 58 Obstructionist Champion Doubter Supporter Dynamic Receptivity Lo w Hig h Hig h
Step 1 Gather account data Step 2 Analyze key player roles and priorities Step 3 Identify needs and opportunities in the account Step 4 Define goal, strategies and initiators Step 5 Create action plan Step 6 Effectively execute and monitor results Phase 1: Analysis Know and understand the account Phase 2: Vision Seize opportunities and strategy Phase 3: Actions Effectively execute and monitor results Revisit – Review – Revise as needed
Phase 2: Vision Seize Opportunities and Strategy 3. Step 3 – Identify needs and opportunities in the account 4. Step 4 – Define goal, strategies and initiators 62
Phase 2: Vision Step 3: Identify Needs and Opportunities in the Account Situation Question Problem Question Implication Question Need-Payoff Question Identify Need 63
Cont. … 64 Problem Question Implication Question Need-Payoff Question Situation Question • What is the epizootic situation? • What are the most important pathogens pressure? • Where do you have highest mortality? • What are your objectives when you vaccinate?
Cont. … 65 Situation Question Implication Question Need-Payoff Question Problem Question • What challenges you are facing? • What types of difficulties occur when using vaccines and FA? How often? • In which cases do you think your current FAs are not optimal? • Which element do you want to improve in your disease management? • What issues do you have to face in your activity, in terms of; • Flock performance? People education? Technical issues? Margin? Cost of labor? Trading?
Cont. … 66 Situation Question Problem Question Need-Payoff Question Implication Question • What is the impact of vaccination/FAs on your profitability? • How to get max profit? • What results you want to achieve? • What impact does this have on your protocols? • What would be the gain to add ***? What are the consequences for you…?
Cont. … 67 Situation Question Problem Question Implication Question Need-Payoff Question • What if I offer you a prophylactic AF treatment for ****? • What if you have another option for controlling *****? • Future plans? • What kind of service you would like to get (at a time on continuing basis)?
Review Potential Ways to Solve Issues › Increase margin (production cost or differentiation) › Increase recognition (in front of own customers) › Flock performance (potential uncontrolled diseases, management) › People education (lack of knowledge, lack of motivation) › Technical issues (management, equipment…) › Cost of labor (automation..) › Trading (Find new customers, go to international…) 68
What Match These Needs in Our Portfolio ? › What is our portfolio? – Feed additives and antibiotics – External consultants and experts – Technical team – Communication tools – Vaccines – Devices – Diagnostic tools 69
Phase 2: Vision Step 4: Define Goal, Strategies and Initiators Goal may be; 1. Strategic goal 2. Sales goal 3. Value goal 72
Strategy Vs. Tactics Strategy – A long-term plan to achieve a result or results beneficial to you and your customer – Example: penetrate the account at high levels and build support by using our “expert resources” on team sales calls Tactic – A short-term action designed to help execute a strategy or plan – Example: have our marketing vice president deliver part of an initial capabilities presentation to the customer's decision-making committee 73
Phase 2: Vision Step 4: Define Goal, Strategies and Initiators The 3 fundamental Strategies; 1. Alignment Strategy – What level of organization relationship is best suited to meet your goals? 2. Access Strategy – To whom in the account do you require access to gain support and commitment for your long - term strategic goals? – How do you best carry out a strategy for selling to multiple levels of customers? 3. Allocation of Resources Strategy – What resources will you require to meet your goals, and how should they be allocated? 74
The 5 Levels of Alignment What is your Alignment Quotient Indicator?
76 C C C C C Competitors You and your organization Customer
77 C C C CC Spectator Vendor Preferred Vendor Business Consultant Strategic Partner
78 C C C CC Spectator Vendor Preferred Vendor Business Consultant Strategic Partner Spectator • You and your organization have no relation with the customer. • The account deals with your competitors and does not see a need for your product or service. • You have chosen not to work with this account.
79 C C C CC Spectator Vendor Preferred Vendor Business Consultant Strategic Partner Vendor • You and your organization are on a relatively equal playing field, supplying products and services to the customer.
80 C C C CC Spectator Vendor Preferred Vendor Business Consultant Strategic Partner Preferred Vendor • You are the supplier of choice and own the largest share of the customer business. • You advice the customer on your products and services
81 C C C CC Spectator Vendor Preferred Vendor Business Consultant Strategic Partner Business Consultant • You help the customer manage of their business. • You consult with them to help meet their long term business goals.
82 C C C CC Spectator Vendor Preferred Vendor Business Consultant Strategic Partner Strategic Partner • You and your organization manage the customer business in your area of expertise providing bottom line value that they cannot achieve without you. • You are considered to be an integral part of the customer organization. • You provide completely integrated systems to run the operation and the product mix is often composed of your products and services and those of your competitors.
What’s Your Alignment Quotient?
Common characteristics of the 5 levels of Alignment Relationship Access Resources Provided Spectator Sales organization provide no product or services Limited, usually to gatekeeper Few or none Vendor Sales organization provide product and/or services Limited, usually to lower level including gatekeeper Product is most important resource Proffered vendor Sales organization provide product and/or services Access to low and middle level Products and value added services Business consultant Sales organization provide consulting to help customer meet business goals Access to all or most levels Products, value added services and consulting beyond products Strategic partner Sales organization co- manages a function of customer’s business; often contractual, though may be non Easy and regular access to all or most levels Two organizations share and manage resources, including those of the customer and the sales organization’s 84
Step 1 Gather account data Step 2 Analyse key player roles and priorities Step 3 Identify needs and opportunities in the account Step 4 Define goal, strategies and initiators Step 5 Create action plan Step 6 Execute action and monitor results Phase 1: Analysis Know and understand the account Phase 2: Vision Seize opportunities and strategy Phase 3: Actions Effectively execute and monitor results Revisit – Review – Revise as needed
Phase 3: Actions Effectively Execute and Monitor Results 5. Step 5 – Create action plan 6. Step 6 – Execute action and monitor results 88
Phase 3: Actions Step 5: Create Action Plan Present offer to customer 1. Meeting with relevant support 1. Available products 2. Technical and marketing support 3. PR support 2. Focus proposal on solutions 1. Show ROI 2. Determine targets 3. List actions and products together 4. Pricing is part of collaboration 89
Phase 3: Actions Step 6: Execute Action and Monitor Results Implementation 1. Covers the full period (year) 2. Perfect execution - full involvement of the team 3. Monitor execution regularly 4. Build and improve credibility, show your commitment and high skills level 5. Prepare next period collaboration - collect new information, analyze barriers and expectations 90
Step 1 Gather account data Step 2 Analyze key player roles and priorities Step 3 Identify needs and opportunities in the account Step 4 Define goal, strategies and initiators Step 5 Create action plan Step 6 Effectively execute and monitor results Phase 1: Analysis Know and understand the account Phase 2: Vision Seize opportunities and strategy Phase 3: Actions Effectively execute and monitor results Revisit – Review – Revise as needed
Review and Update Your Plan › On periodical basis, review each key account plan progress and modify in necessary. 93
Contact us on; ossama.motawae@eurekaeg.com +201023985680 94

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