strategic account planning - what separates the great from the weak
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Strategic Account Planning – What separates the GREAT from the rest
The Last Crusade of Account Planning
2
Johnson & Johnson
Rosneft
Emirates NBD
Lukoil
Tesco
UnitedHealth Group
Aviva
National Bank of Abu Dhabi
Prudential Financial
Siam Commercial Bank
Bank of Montreal
Alcatel-Lucent
DnB NOR
NEC
US Bancorp
Metalurgica Gerdau
Ricoh
Toyota Industries
PICC Property & Casualty
KB Financial Group
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Accounts byRevenue in Millions
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Top 1%
Next 4%
Next 15%
Bottom 80%
Today’s Language Lesson
Strategic AccountKey Account
Global Account Major AccountThe Big Dog’s
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Top 1%
Next 4%
Next 15%
Bottom 80%
800 Customers 29% Dollars
200 Customers43% Dollars
3,000 Customers21% Dollars
16,000 Customers7% Dollars
Customers = 20,000Total Revenue = $
700,000,000
Typical Customer Segmentation
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Today’s Agenda – Great Strategic Account PlanningWhat does ‘Good’ like and is it worth the bother?
•Why should we bother? It’s too Hard!•Ok, so I should do it, but it feels broken•How do I fix it and make it good, great?
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Strategic Suppliers have Advantages
Forrester Research
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Strategic Account Revenue GrowthYear over Year
2009 2011 20130%2%4%6%8%
10%12%14%16%
12%14%
10%
6%8% 7% Strategic Accounts
Other Accounts
SAMA – 2014 Key Trends Report
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From the Buyers Perspective – How many Strategic Vendors/Partners do you have?
22%
22%
17%
13%
19%1 to 55 to 1010 to 1515 to 20More than 20
Forrester Research: Q3 2012 Global Sourcing &Vendor Management Priorities Survey
81% of CompaniesHave 20 or less
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Account Managers say“Percentage of My customers that say we are a strategic partner”
1% to 25%
26% to 50%
51% to 99%
100%
10%
12%
61%
17%
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Effectivity of Selling to Existing Customers
Source: CSO Insights Sales Performance Survey
Revegy Proprietary & Confidential
Business Value of Effective Strategic Account Planning & Management
Relationship Win Rate Pct of AcctMgrs Making Quota
Level 5 – Trusted Partner 54% 70%
Level 4 – Strategic Contributor 51% 66%
Level 3 – Solutions Consultant 50% 63%
Level 2 – Preferred Supplier 48% 62%
Level 1 – Approved Vendor 44% 57%
Source: CSO Insights Sales Performance Survey
Average
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Today’s Agenda – Great Strategic Account PlanningWhat does ‘Good’ like and is it worth the bother?
•Why should we bother? It’s too Hard!•Ok, so I should do it, but it feels broken•How do I fix it and make it good, great?
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Good vs. Great
55.6% of high performing reps reported they regularly focus on account planning versus
41.2% of poor performers.
16
SiriusDecisions Research
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Importance/Quality of Account Planning
Source: CSO Insights 2012 Sales Performance Survey
88%
12%
Importance
ImportantNot Impor-tant
8.3%
36.8%54.9%
Account Plan Quality
Exceeds Expec-tationsAdequateNeeds Im-provement
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Importance/Quality of Account Planning
Source: CSO Insights 2012 Sales Performance Survey
88%
12%
Importance
ImportantNot Impor-tant
8.3%
36.8%54.9%
Account Plan Quality
Exceeds Expec-tationsAdequateNeeds Im-provement
Percentage of Account Plans Effectively Executed
11%SAMA Global Survey 322 Strategic Account Managers/Executives
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Impact of Effective Account Planning
Poor Adequate Good
42.9%48.1%
60.4%
Win Rate
Source: CSO Insights 2012 Sales Performance Survey
Poor Adequate Good
84.4%
90.8%
99.0%
Corporate % of Quota
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What’s Broken in Account Planning?- The Management View
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What’s Broken in Account Planning?- The Plan Itself
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Company Background
Executive Summary
Current Financial Situation Organization Chart
Historical Product Spend
Buying Centers
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What’s Broken in Account Planning?- The Team
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What’s Broken in Account Planning?- The Customer
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Today’s Agenda – Great Strategic Account PlanningWhat does ‘Good’ like and is it worth the bother?
•Why should we bother? It’s too Hard!•Ok, so I should do it, but it feels broken•How do I fix it and make it good, great?
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Items that correlate to Strategic Account Profitability
SAMA – 2014 Key Trends Report
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Account Planning – Process Best Practices
Critical Success Factor - Process
Value
1. Prioritize/Segment Accounts
Focus on best potential accounts
2. Common Process, Tools & Language
Drive Scalability
3. Account Reviews/Coaching Drive behavior change, measure improvements over time
4. Continuous Collaboration Customer and Team Alignment
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Step 1 - Begin with the End in Mind
What is your objective?
- Retention- Company Revenue Growth- Vertical Penetration- Competitive Differentiation
30
31
Johnson & Johnson
Rosneft
Emirates NBD
Lukoil
Tesco
UnitedHealth Group
Aviva
National Bank of Abu Dhabi
Prudential Financial
Siam Commercial Bank
Bank of Montreal
Alcatel-Lucent
DnB NOR
NEC
US Bancorp
Metalurgica Gerdau
Ricoh
Toyota Industries
PICC Property & Casualty
KB Financial Group
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000
Tier 1 Accounts
Tier 2 AccountsNot so great
Step 2 – Choose Wisely, Grasshopper!
Relationship & Fit
Pote
nti
al V
alu
e
Relationship & Fit- Current Level of Trust- Key Stakeholder
Relationships- Strategic Fit of Two
Companies
Potential Value- Business Growth- Past / Current Revenue Size- Potential Opportunities2014 Current Trends Report - SAMA
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Step 3 – If you don’t know where you are going, any road will get you there
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Common Account Planning Process with Coaching
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90%3-5 Years
Revenue Performance
60%
39% Top Per-formersUnder Per-formers
46%Today
CxO’s Plan to Collaborate More
CEO Says Collaboration is a Top Priority
Step 4 - Collaborate
IBM 2014 CEO Survey
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IBM CEO Survey on Customer Collaboration
“You have to ‘marry with yourCustomers and share experiences,Good or bad, to gain trust”
CEO Major Professional Services Firm
“In the next few years we wantTo build deep, strategic relationshipsWith our customers, enterprise-To-enterprise relationships whereThe ‘customer is for life.’”
Paul Graham, CEO, DHL Supply Chain, Singapore
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Top Internal Barriers to Strategic Account Development
Corp and SAM Strategy Misaligned
Lack of Senior Executive Support
Internal Collaboration Challenges
Inadequate Corporate Support
Global vs. Local Conflict
Too Much Short Term Focus
Internal Silo Conflict
16%
18%
19%
21%
34%
53%
54%
Colla
borat
ion
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Collaborate Internally – Especially with Marketing
38
Account status
Account opportunities
Account objectives
Account strategy
Marketing adds…Sales has…
History, customer feedback, product/service portfolio
Data on optimal combinations, propensity to buy
Prioritization of accounts and program development
Programs to support goal attainment
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Account Plan – Best Practice Elements
Critical Success Factors – Account Plan Elements1. Understand the Customers’ Goals and how they measure success2. Identify and Nurture Key Relationships
3. Leverage Customer Value Scorecards
4. Build collaborative, team-based action plan
5. Measure the results
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Plan Element 1 – Seek First to UnderstandCollaborate with the customer around their goals
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Plan Element 2 – What relationships do we have and what relationships do we need?
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Element 3 - Scorecard Value from the CUSTOMERS’ perspective
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Element 4 – Develop a Collaborative Roadmap with the customer
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Element 5 – Measure SuccessAutomation, not Excel!
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Account Planning – Process Best Practices
Critical Success Factor - Process
1. Prioritize/Segment Accounts
2. Common Process, Tools & Language
3. Account Reviews/Coaching
4. Collaborate
Critical Success Factors – Plan Elements
1. Understand the Customers’ Goals and how they measure success
2. Identify and Nurture Key Relationships
3. Leverage Customer Value Scorecards
4. Build collaborative, team-based action plan
5. Measure the results
Business Value of Strategic Account Planning
Source: CSO Insights Sales Performance Survey Global Survey of over 1500 companies
Ability to Create Account Plans & Prioritize as related to Forecast Deal Outcome
Plan Exceeds Expectations
Plan Meets Expectations
Plan Needs Improvement
Better competitive differentiation 96% 75% 53%
Better at selling value/avoiding discounting 88% 68% 66%
Relationship Level 3 or higher 78% 66% 51%
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Business Value of Effective Strategic Account Planning & Management
Relationship Win Rate Pct of AcctMgrs Making Quota
Level 5 – Trusted Partner 54% 70%
Level 4 – Strategic Contributor 51% 66%
Level 3 – Solutions Consultant 50% 63%
Level 2 – Preferred Supplier 48% 62%
Level 1 – Approved Vendor 44% 57%
Source: CSO Insights Sales Performance Survey
Average
Revegy Proprietary & Confidential
Business Value of Effective Strategic Account Planning & Management
Relationship Win Rate Pct of AcctMgrs Making Quota
Level 5 – Trusted Partner 54% 70%
Level 4 – Strategic Contributor 51% 66%
Level 3 – Solutions Consultant 50% 63%
Level 2 – Preferred Supplier 48% 62%
Level 1 – Approved Vendor 44% 57%
Source: CSO Insights Sales Performance Survey
TrustedPartner
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A complimentary offer for you.
As our thanks for attending this webinar, we will send you a complimentary copy of the:
2015 Revegy Account Planning Template (Published in March)
Email: Michelle at [email protected] Subject line: Account Planning Template
Thank you for joining us!