Account Planning & Management

By:

Deepali Bhardwaj

Selection Criteria For Relationship Investment

Revenue potential Strategic importance of customer Relative size Product / service group Image Strategic, Geographical and Cultural fit

Partnership opportunities
Geography

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Relationship Stages: Exploratory

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Relationship Stages: Basic

Transactional

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Benefits of Efficiency, Resource Control Disadvantages of Fragility, Vulnerability to competition, limited understanding and opportunity

Relationship Stages: Cooperative

Transitional stage Difficult to control and account management yet to be established

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Relationship Stages: Interdependent

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Trust, much more exchange of information, proactive strategies based on deeper understanding , opportunities for joint strategic planning Account Managers aspire for this stage 6

Relationship Stages: Integrated

Ops Focus Team

Key A/c Manager

R&D Focus Team Environment Focus Team

Finance Focus Team Service Focus Team

Key Customer Contact

Mktg Focus Team

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Just short of merger Boundaries between two companies dissolve since high degree of trust eliminates protection

Key Account Strategy

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Know The Customers Buying Process?

Overall company goals for one to five years

What Impacts A Buying Process ?

Business Units goals for one to five years

Plant and machinery strategy

Information technology strategy

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Know The Customers Buying Process?

Management Strategy Who owns the IT assets? What degree of centralization is there? What does management require in terms of standards and strategy? Application Strategy What are the requirements for information? Who allocates resources and what are the current priorities? How does the company plan its projects? Technology Strategy What are the strategies for data, communications, computer 10 distribution software and suppliers
Overall company goals for one to five years

Business Units goals for one to five years

What Impacts A Buying Process

Plant and machinery strategy

Information technology strategy

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Evaluate Relationship Risk Factors

Customer has relationship with other business units of the

supplier Customer buys across the product range Long standing relationship Supplier has relationship with intermediary/influencer Supplier has multiple contacts at customer (depth of relationship) Customer has multiple contacts at Supplier(depth of relationship) Supplier understands customers business Supplier understands customers industry
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Relationship Risk Scorecard Framework

Overall relationship with the supplier company
Number of relationships key account has with other business

units Number of products / services key account buys Duration of relationship in years

Relationship with key account

Quality of our relationship with intermediary / influencer (scale

1-5) Quality of our relationship with key account(scale 1-5) Number of contacts at customer Number of contacts customer has with us

Understanding the key account

How well we understand customers business (scale 1-5) How well we understand customers industry (scale 1-5)
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Relationship Risk Scorecard Example

Relationship Risk Factor Worst Case Best Case This Key A/C

Overall relationship with the supplier company 1 2 3 4 5 Number of relationships key account has with other business units Number of products / services key account buys Duration of relationship in years Relationship with key account Quality of our relationship with intermediary / influencer (scale 1-5) Quality of our relationship with key account(scale 1-5) 1 1 5 5 3 4 0 3 0.5 3 10 16 0 5 3

6
7 8 9

Number of contacts at customer

Number of contacts customer has with us Understanding the key account How well we understand customers business (scale 1-5)
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2
3 1 1

8
10 5 5

3
3 1 1
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well we understand customers industry (scale 1-5)

Account Plan
A tool to manage the account it is the key control document and people must use it in everyday life Living, breathing, working document Mechanism by which individuals accept accountability for carrying out actions and achievement of goals Objectives and goals clearly defined on the plan Action plan, who does what when are the key components of the plan Engage the customer in your account plan
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Planning Process
Environmental Analysis
SMART Goals Specific, Measurable Achievable Relevant Time-Based Industry Competition Customer Supplier PEST Porters 5 Forces SWOT Porters Value Chain

Goal Setting

Action Plans

From Strategies using 7Ps or CSFs

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Developing Strategies For Action Plans

Using 7Ps
Strategy 1 2 3 4 Product Price Promotion Place Definition in Account Management context Product attributes, specification and quality, product modification, new product development Overall pricing strategy, discounts, rebates, relationship pricing Branding, brand image and values, promotions Delivery and logistics, geographical scope etc

5
6 7

People
Processes Perception of Customer Service

Relationships, cultural fit, skills and credibility of account managers

Ease of use of supplier services, complaint resolution, transparency, continuous improvement Physical evidence- supplier facilities, appearance of staff, usability of documents, manuals etc

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Developing Strategies For Action Plans

Using CSFs
CSF

1 2 3

Level of Contact Customer satisfaction/Supplier Contribution Account Planning

4
5 6 7 8
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Competitive position
Strategic apps, products & services Key customer strategies Pipeline Market share
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Planning Process
Environmental Analysis Goal Setting
Action Plans
Review and modify the Goals

Resource Plan

No

Allocate Resources Yes Implementation

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Planning & Management Process

Supplier Companys Plans

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Management Process
Environmental Analysis Goal Setting
Action Plans
Ad-Hoc or Occasional Review Regular Review Frequent Review

Resource Plan

Ad-Hoc or Occasional Review

Allocate Resources Implementation

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