In recent planning meetings with several clients, a common theme (challenge) has emerged. While sales are reasonably strong, a deeper review of major accounts (using the Key Account Accelerator process) revealed some interesting facts. Chief among them is that each company is only a few client defections away from a major write down in business results (or worse). While this is the reality for many businesses, it draws greater attention to the need for a comprehensive, business/client review process.
Reviewing key accounts is not a new idea; yet it is rarely practiced, at lease not in a formal, structured way. Taking them one by one, beginning with the most important client, a deep review of each with the senior leadership team provides many important insights. And the process yields raw material for a robust client acquisition strategy.
There are a number of revealing questions the team will ask, answer, discuss and debate for each account. Here are five to get you started:
- What qualifies this client as a “key account”? (i.e.; volume, frequency, fit and interface, longevity, value-added, profitability, strength of the relationship, etc.). For most businesses, sales volume is the most significant, and often the only determinant for identifying a “key account.” No argument that volume matters; however, while volume is a necessary measure, it is not sufficient. There are other crucial factors to be considered in “scoring” a key account. A few of these are indicated in the question above but there are others. Are they strategic in the sense that they get you into a new vertical you’ve been trying to add? Are they a strong brand name that can bring important referrals? What can be learned from this account that will help build your subject matter expertise?
- What are the primary products/services we provide for them?
- How do they benefit from these?
- How do we know?
- What is the “share of customer” we are getting from this account? Are they procuring products/services from other sources which we could provide? Is this a default choice on their part or are they unaware of our full portfolio? If they are not aware, why is this (caution: the answer may surprise and even annoy you!)?
Answers to these and other questions for discussion can yield not only deep insights to each “key account” but will help you frame your procurement strategy for adding to your client roster.
For more information on the Key Account Accelerator as part of a strategy and planning session and for a complete list of questions to discuss as part of a key account review, email me at [email protected] or visit my website at ajstrategy.com.
