How can I qualify the right accounts for my large/strategic/global account segment?

Many companies face the challenge of understanding which customers and prospects should be part of the strategic, national or global account organization.  Determining how to choose and, or qualify the customers and prospects is important for a variety of reasons.  Strategic customers usually have lesser margins than other segments, typically receive a greater level of service, and some of the best talent in the organization will be dedicated to these customers.

Often times customers and, or prospects become part of the large accounts program simply because of the size of the organization, existing revenue, because there are multiple geographic locations needing representation, or for any number of reasons.  Because of the lack of discipline used to qualify these customers, many times the large account organization has too many customers which creates a number of issues for the organization.  The sales and support teams get stretched too thin and do not have the time to spend on the best customers and opportunities.  Constant battles erupt with the financial organization on the cost of sales to support seemingly price only customers.  And some of the customers do not recognize the underlying value proposition or the sales team is to busy to understand how to map the customer needs to the value proposition.  The very best customers may be vulnerable to the competition because the team doesn't have the time necessary to continue to evolve the relationship.

Because I've personally encountered this issue at a number of companies across industry sectors, I've created a simple tool to help companies define what a key account is and qualify existing and future accounts.  Simply put the tool is a large/strategic account qualifying filter (see example below).  To build a filter follow these steps.

1. Create and prioritize a list of customer buying attributes.  
2. Narrow the list to less than seven.
3. Define each attribute.
4. For each attribute, determine varying levels of alignment to your definition versus a scale of say 1 - 5.  Using centralized procurement as an example (1. there is no centralized buying and 5. all buying decisions are centralized).
5. Provide an importance weighting for each attribute.

Once done, test a few existing customers (some of your best, worst, and mediocre) using a different number of attributes and different weighting until you believe you've landed on the correct filter.  If your so inclined you can Then, have a few other people use the filter and send you their results.  Tabulate the results, have a meeting with the pilot team and revise the filter.

Finally, determine the right policy and procedures (governance) of the tool and process.  Who owns the tool and process, what score is necessary to "pass", is there a process for exceptions, how often should the tool be updated and accounts re-scored, how should we train the organization, etc.).  And finally how do we transition existing accounts to a different service model to free up capacity for the most valued accounts?

Select the link below to download the sample.
Filter Sample

Selling Through the "In Box"

I know I'm not the only chief sales and marketing executive that's "sat on the other side of the table" and experienced both excellent, and not so good sales and marketing pitches.  My hope has always been that my own sales and marketing teams were aligned with the former, but the chill in my bones tells me otherwise.

Excellent or needing improvement, one nuance many sales people  miss is how to get their proposal to the top of the customer's "in box."  For example, I remember calling on a major financial institution with one of our company's sales people just after the economy went into a free fall.  I recall the customer vividly as she pointed out her dilemma.  "Look" she said, "I used to be responsible for leading the department.  I've now also taken responsibility for managing some suppliers directly.  It's been tragic here, we've had to lay off 25% of our department; so we're all pitching in and just holding things together thankful to still have a job. While I love the ideas in your proposal; and believe they're a great fit, I just don't have the time to build the business case. Instead, I'd like to talk to you about how you can reduce your price so I don't have to take you out to bid."

Suddenly our company's sales person went from pitching an idea to grow the business to defending the current program and price.  Naturally, the sales person began to panic and list all the benefits of our current program with the customer, all the progress that had been made, etc.

When the rep came up for air, I politely inserted myself and began to ask the customer some questions about how she was feeling and coping with all the change.  The customer shared a lot about how stressed she was and how on edge her department was, and how all she knew was that she wanted to find a way to meet the company's objectives to cut costs and save jobs.  I then shared my experience sitting on her side of the table. I told the customer I totally understood her perspective.  I told her I to had an in box full of all the things my boss wanted done, the staff wanted done, customers wanted done, vendors wanted done, and that somewhere in there were some good ideas that I wanted to pursue.   The customer interrupted me and said, "You forgot about my husband, my kid's sports team, the school, etc."  At which point we all started laughing.

Then I told her that I thought we could help.  I asked her to take us through the processes being created and monitored by the company to save money.  I asked her what was expected, by when and how initiatives were being tracked.  The customer outlined the process and told us what needed to be done every step of the way. The customer willingly gave us a step by step playbook for how to win the business.

When she was done, I told her that I was certain we could do >90% of the work for her.  I asked her how she planned to reduce costs form the various suppliers being that she'd lost most of here team.  Her response, "Good question!"  I told her that's where we could help.  I told her to think of us as an extension of her team.  We'll do the analysis, we'll build the implementation plan, we'll even craft a draft email to your boss.  And of course, we promised to get her feedback every step of the way.

Within about sixty days the customer's in box was reduced in size along with some of her anxiety we won the business.

Looking back it became obvious to me why so many sales people miss this opportunity.   I believe it's largely because they've not been on the "other side of the desk" dealing with all the issues that go along with implementing a new idea and/or changing a program or supplier.  It take's a lot of work and is one reasons why 60% of RFP's are won by the incumbent.

I now regularly coach sales people to be conscious of the challenges the customer faces.  Because no matter how good or lucrative your proposal may be it must to get to the top of your customer's in box before it will be considred.  Do you know where your proposals are in the in box?