Why do I need an Account Management Strategy
Every business needs to take a step back and look at their sales performance and aske themselves "how do we manage sales in our company?" Embarking on developing an Account Management Strategy means that you will have to focus in on key areas which will help you understand where the weakenesses are. At the core of the development of a Key Account Management Strategy you need to look at two fundamental questions
(i) Where are you now? and
(ii) Where do you want to be?
Once you have answered these two questions you can now move forward in the development of Account Management Strategy. Most companies use a gap analysis as a business resource assessment tool to enable them to compare their actual performance with their potential performance in order to provide a foundation for measuring investment of time, money and human resources required to achieve a particular outcome.
There is a need to evaluate the total potential available for the whole market, including all segments covered by all competitive brands. It is important to determine the maximum potential individual usage, and extrapolating this by the maximum number of potential customers. This is the best way to estimate the market and will provide valuable information for future sales development and focus.
The following areas need to be reviewed in order to put a formal Account Management Policy and Performance Management System in place. The Account Management Strategy needs to take on board the optimisation of resources available and external market factors.
- What is the current Account Management Policy?
- How should certain customers be approached?
- GAP Analysis on existing customers?
- Where is Focus - maintaining existing business –vs- building new business
- Sales Volume –vs- Profitability
Sales Force Organisation
- Territory Plans – how are they defined?
- What is best way for each sales person’ time to be allocated within their territory?
- Account Management – define profitable customers
- Level of Performance?
- Forecasting demand
- Setting targets?
Monitoring of Sales Development/Performance
- Review of Management Processing System
- Review of Weekly reports of performance compared to target
- Feedback from the market?
- Company performance and individual sales performance
- Measurement of turnover and profitability
- Masurement of customer satisfaction level
- Measurement of new accounts secured
Coaching the Sales Force – Best Practice
- Recruitment & Selection (See Blog Recruiting for Talent)
- Sales Training (See Blog How to sell with More Confidence)
- Annual Appraisals (See Blog How to ask the right Coaching Questions)
- Career Development
- Remuneration Package (Salary + Bonus)
We always need to look inwards at our Business and seearch for ways to continually improve on what we do so that we can be the very best for our customes and our staff and in doing this there will be a Win-Win for all concerned - Guaranteed!
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