Strategic selling to key customers

STRATEGIC SELLING –
the key account management pathway
DR WILFRED MONTEIRO (www.synergymanager.net)
India's renowned sales coach and trainer
has spearheaded the sales turnaround of several companies
afflicted by stagnant sales and erosion of market share.
His key account management initiatives
have help companies discover new insights and levers
for successful implementation
DR WILFRED MONTEIRO (www.synergymanager.net)
India's renowned sales coach and trainer
has spearheaded the sales turnaround of several companies
afflicted by stagnant sales and erosion of market share.
His key account management initiatives
have help companies discover new insights and levers
for successful implementation
2

3
(c) copyright 2010 Dr Wilfred Monteiro www.synergymanager.net

What changes have you seen
in the marketing scenario
in the last decade??
What changes have you seen
in the marketing scenario
in the last decade??
4

“Selling is the highest business
purpose of the organization.
Selling is no longer a
function within the company;
it is the SOLE function
of the WHOLE company”
“Selling is the highest business
purpose of the organization.
Selling is no longer a
function within the company;
it is the SOLE function
of the WHOLE company”
5

HOW TO BEGIN
• Key account management (KAM) is essentially the
focusing of a supplier company's sales, marketing
and service resources, through a select global team,
on key customers.
• Such customers are deemed vital to the supplier's
future because of their potential large volume
purchases through an extended time.
• Key account management is a strategic
sales/support tool that facilitates the development of
an effective, long-term customer relationship or
strategic partnership
• Key account management (KAM) is essentially the
focusing of a supplier company's sales, marketing
and service resources, through a select global team,
on key customers.
• Such customers are deemed vital to the supplier's
future because of their potential large volume
purchases through an extended time.
• Key account management is a strategic
sales/support tool that facilitates the development of
an effective, long-term customer relationship or
strategic partnership
(c) copyright 2010 Dr Wilfred
Monteiro
www.synergymanager.net
6

HOW TO BEGIN
• You can effectively grow your business "garden"
when you know where to prune the bushes and trees
that represent your customers.
• By cutting or clipping here and there, and being
deliberate about removing any unprofitable
customers, or ones that are draining your company’s
resources, you have a greater chance of surviving
and even thriving in today’s ever complex and more
demanding marketplace.
• You can effectively grow your business "garden"
when you know where to prune the bushes and trees
that represent your customers.
• By cutting or clipping here and there, and being
deliberate about removing any unprofitable
customers, or ones that are draining your company’s
resources, you have a greater chance of surviving
and even thriving in today’s ever complex and more
demanding marketplace.
Monteiro
7

Key Account Based Selling - Advantages
KAM can deliver the following benefits :
• Increase sales effectiveness by pursuing high potential
accounts and opportunities
• Increase market share and revenue within existing accounts
• Increase profitability through development of the appropriate
product & service offering for the customer.
• Provide opportunities to contribute to the success of the
customer
• Improve customer retention through stronger relationships and
increased client satisfaction
• Facilitate the allocation of marketing and sales resources
• Increase sales effectiveness by pursuing high potential
accounts and opportunities
• Increase market share and revenue within existing accounts
• Increase profitability through development of the appropriate
product & service offering for the customer.
• Provide opportunities to contribute to the success of the
customer
• Improve customer retention through stronger relationships and
increased client satisfaction
• Facilitate the allocation of marketing and sales resources
8(c) copyright 2010 Dr Wilfred
Monteiro

Why Customers are more Profitable over Time!
Profit
from Price
Premium
Profit from
Referrals
Profit from
Reduced
Operating Cost
Co.
Profit
Monteiro
1 2 3 4 5 6 70
Profit from
Reduced
Operating Cost
Profit from
Increased Purchases
& Higher Balances
Base Profit
Co.
Profit
Year
Custo
mer
Acquis
ition
Cost
9

KAM- the STEPS of strategic selling
• Establishing a full understanding of the customer - This
includes size, success, vision of the future, corporate
personality, culture and needs.
• Developing a detailed knowledge base, fab by fab,
throughout the world - The team must collect information
on the installed base of the supplier's products and that
of key competitors to understand the supplier's
competitive position.
• Developing a broad strategic plan- Building a significant
position within a customer takes time, tenacity, and
consistency in movement toward objectives.
• Establishing a full understanding of the customer - This
includes size, success, vision of the future, corporate
personality, culture and needs.
• Developing a detailed knowledge base, fab by fab,
throughout the world - The team must collect information
on the installed base of the supplier's products and that
of key competitors to understand the supplier's
competitive position.
• Developing a broad strategic plan- Building a significant
position within a customer takes time, tenacity, and
consistency in movement toward objectives.
10

What are the
challenges in the
business scenario?
What are the
challenges in the
business scenario?
11

Synergistic
KAM/Integrated
Strategic intent
of seller
Partnership KAM/
Interdependent
KAM relational development model
Strategic intent
of seller
Pre KAM/ Exploratory
Early KAM/Basic
Mid KAM/Cooperative
Strategic intent of buyer
12

Needs of a strategic customer ?
- Needs are based on the type of strategic customer being targeted.
- Classic sales applies: known needs, unknown needs, competitive
driven needs, personal needs etc.
- Vertical and/or industry knowledge is a must.
- Competitive knowledge can highlight deficiencies in existing solutions
- Good understanding of metrics that present value to the customer.
The goal of any Key Account Manager is to develop an understanding
of the needs of the strategic customer being targeted, and develop an
ongoing rolling strategy to acquire an expertise that demonstrates this.
- Needs are based on the type of strategic customer being targeted.
- Classic sales applies: known needs, unknown needs, competitive
driven needs, personal needs etc.
- Vertical and/or industry knowledge is a must.
- Competitive knowledge can highlight deficiencies in existing solutions
- Good understanding of metrics that present value to the customer.
The goal of any Key Account Manager is to develop an understanding
of the needs of the strategic customer being targeted, and develop an
ongoing rolling strategy to acquire an expertise that demonstrates this.
13

What is the special offer ?
- Each strategic customer is likely to consider ‘offers’ differently.
- The ‘special offer’ can only be something the customer values.
- The ‘special offer’ may generate revenue – or not e.g. 24/7 support.
- The ‘special offer’ needs continual re-assessment to determine its
continued value to the strategic customer. Pavlov effect.
- The special offer can be both specific to an individual or generic to
the organisation.
-There may be multiple ‘special offers’ that are applied to any one
strategic account to meet multiple objectives – subject to time,
resource and money available.
The goal of any Key Account Manager is to understand and develop
a ‘special offer’ that appeals to the strategic customer.
- Each strategic customer is likely to consider ‘offers’ differently.
- The ‘special offer’ can only be something the customer values.
- The ‘special offer’ may generate revenue – or not e.g. 24/7 support.
- The ‘special offer’ needs continual re-assessment to determine its
continued value to the strategic customer. Pavlov effect.
- The special offer can be both specific to an individual or generic to
the organisation.
14

What is the differential advantage ?
- You can’t differentiate unless you understand your competition.
- You can’t differentiate unless you understand the customers vertical
or market and associated challenges.
- An advantage is only a differential one if the strategic customer
perceives and accepts it to be such.
- Existing references or repeated solutions are often the easiest way
to differentiate a solution from the competition.
- Good Key Account Management can be a differential advantage.
- The goal of any Key Account Manager is to learn, understand and
exploit the differential advantages at the beginning of a sales cycle as
well as re-enforcing them post sale .
- You can’t differentiate unless you understand your competition.
- You can’t differentiate unless you understand the customers vertical
or market and associated challenges.
- An advantage is only a differential one if the strategic customer
perceives and accepts it to be such.
- Existing references or repeated solutions are often the easiest way
to differentiate a solution from the competition.
- Good Key Account Management can be a differential advantage.
- The goal of any Key Account Manager is to learn, understand and
exploit the differential advantages at the beginning of a sales cycle as
well as re-enforcing them post sale .
15

Plan to do things differently
The biggest practical problem is routine, leading to removal
of pro active approach.
- Identify where value creation can exist.
- Plan for account growth.
- Focused / account specific strategy for each of
the key accounts.
Plan to do things differently
The biggest practical problem is routine, leading to removal
of pro active approach.
- Identify where value creation can exist.
- Plan for account growth.
- Focused / account specific strategy for each of
the key accounts.
How competitive are you in meeting the needs
of your key accounts?
16

The ‘problem solving’
approach to KAM
- Problems are good ! Problems require solutions.
- Solutions require software and services = money !
- Problems give us the chance to re-enforce cognitive consonance.
- Problems allow us to take them from Sad, Mad or Scared back to ‘Glad’.
- Customers will spend money to get back to ‘Glad’.
- Solved problems invite confirmation of the strategic relationships worth.
The goal of any Key Account Manager is to keep customers feeling
‘glad’ about their relationship including any purchase(s) by
identifying and solving past, current and future problems.
- Problems are good ! Problems require solutions.
- Solutions require software and services = money !
- Problems give us the chance to re-enforce cognitive consonance.
- Problems allow us to take them from Sad, Mad or Scared back to ‘Glad’.
- Customers will spend money to get back to ‘Glad’.
- Solved problems invite confirmation of the strategic relationships worth.
17

Key Account Management - best practice actions
Set account
objectives
Set account
objectivesReview account
Analyze AccountAnalyze Account
 Rank accounts on “Improvement Potential” index
 Re-deploy resources to highest potential channels/accounts
 Target category management efforts to accounts with “capability”
 Understand account
requirements/ needs/
capabilities
 Plan account actions to
“fix” problem P&L line
items
 Target account goals/
accountability for profit
improvement
 Match strategy to
“improvement”
potential
 Tie account team incentives to
customer metrics
 Reflect “balanced scorecard” in
account metrics
Set account
objectives
Set account
objectives
Plan account
strategy
Plan account
strategy
Take planned
action
Take planned
action
Review accountReview account
 Understand account
requirements/ needs/
capabilities
 Plan account actions to
“fix” problem P&L line
items
 Target account goals/
accountability for profit
improvement
 Match strategy to
“improvement”
potential
 Include customer in account planning process
 Develop both internal and customer targets
 Tie actions/events to improvement opportunities
 Monitor performance
against tactical plan
 Hold account team
members accountable
18

Key Account Management Process
• Stakeholder identification
and mapping
• Identify key decision-
maker / influencer needs
• Understand competitor
landscape
• Develop SoWOT
analyses
• Summarise customer
insights
Key account
identification &
prioritisation
Understand
needs and
develop
customer
insights
Review and
communicate
results
• Stakeholder identification
and mapping
• Identify key decision-
maker / influencer needs
• Understand competitor
landscape
• Develop SoWOT
analyses
• Summarise customer
insights
Form the Virtual
Account Team
Develop the
Joint Key
Account
Strategic Plan
Communicate
and implement
the Joint Plan
19

"The Seven Keys to
Managing Strategic Accounts"
Let's take a look at what are the aspects that experts recommends as optimal
key account behaviour:
- Learn how to meet and interact with your customers' top decision makers.
- Never take your competitors for granted: they'll usually surprise you.
- Set realistic goals, and be prepared for the stress of last-minute problems or
changes that will come with no warning.
- Get to work before everybody else does.
- Know your customers' needs and concerns intimately.
- Help customers even in areas unrelated to your product or service.
- Only bend the rules when it's necessary to service the customer.
- Remember that competitors may sometimes offer better service.
- Make sure your customers know when a problem has been solved and that
they know you know.
"The Seven Keys to
Managing Strategic Accounts"
Let's take a look at what are the aspects that experts recommends as optimal
key account behaviour:
- Learn how to meet and interact with your customers' top decision makers.
- Never take your competitors for granted: they'll usually surprise you.
- Set realistic goals, and be prepared for the stress of last-minute problems or
changes that will come with no warning.
- Get to work before everybody else does.
- Know your customers' needs and concerns intimately.
- Help customers even in areas unrelated to your product or service.
- Only bend the rules when it's necessary to service the customer.
- Remember that competitors may sometimes offer better service.
- Make sure your customers know when a problem has been solved and that
they know you know.
20

CAMPAIGN PLANNING
QUESTIONS
• How many times have you heard:
• "You've got to drop your price by 10% or we will
have no choice but to go with your competition."
• "You will have to make an exception to your policy
if you want our business."
• "I know that you have good quality and service,
but so do your competitors. What we need to
focus on here is your pricing."
• "I agree that those special services you keep
bringing up would be nice, but we simply don't
have the funds to purchase them. Could you
include them at no additional cost?"
• How many times have you heard:
• "You've got to drop your price by 10% or we will
have no choice but to go with your competition."
• "You will have to make an exception to your policy
if you want our business."
• "I know that you have good quality and service,
but so do your competitors. What we need to
focus on here is your pricing."
• "I agree that those special services you keep
bringing up would be nice, but we simply don't
have the funds to purchase them. Could you
include them at no additional cost?"
Monteiro

CAMPAIGN PLANNING
QUESTIONS
• What is the prospect's current
situation? Ask this question to give
yourself the lay of the land. Often your
goals for the client, the value your services
can offer the client, and your action
planning for the rest of the sales call come
out of your detailed knowledge of the
prospect's situation.
• What is the prospect's current
situation? Ask this question to give
yourself the lay of the land. Often your
goals for the client, the value your services
can offer the client, and your action
planning for the rest of the sales call come
out of your detailed knowledge of the
prospect's situation.
Monteiro

CAMPAIGN PLANNING
QUESTIONS
• What are my business development goals for this
client or prospective client?
• Different goals for your clients will make for very different sales
conversations. Questions you can ask yourself will include:
– Is this the 'discovery' meeting where we get to know each other
and build rapport while learning how I might be able to help them?
– Am I reviewing the results from the previous year with a client and this is
the meeting where I 'resell' my value so the client stays loyal?
– Am I trying to supplant a competitor?
– Is this a current client where I work in one of their divisions and I would
like to get introductions into the other three divisions where I can also
help?
• What are my business development goals for this
client or prospective client?
• Different goals for your clients will make for very different sales
conversations. Questions you can ask yourself will include:
– Is this the 'discovery' meeting where we get to know each other
and build rapport while learning how I might be able to help them?
– Am I reviewing the results from the previous year with a client and this is
the meeting where I 'resell' my value so the client stays loyal?
– Am I trying to supplant a competitor?
– Is this a current client where I work in one of their divisions and I would
like to get introductions into the other three divisions where I can also
help?
Monteiro

CAMPAIGN PLANNING
QUESTIONS
• What is my desired next outcome?
• Sounds simple enough, but this question
is so often overlooked by professionals
before they meet with clients or prospects
• What is my desired next outcome?
• Sounds simple enough, but this question
is so often overlooked by professionals
before they meet with clients or prospects
Monteiro

CAMPAIGN PLANNING
QUESTIONS
• What are my relative strengths? In
every sales situation various forces are
working in your favor. Know what these
forces are for this particular client or
prospect situation so you can leverage
them to help make the client more
successful. This will give you increased
odds of winning the client.
• What are my relative strengths? In
every sales situation various forces are
working in your favor. Know what these
forces are for this particular client or
prospect situation so you can leverage
them to help make the client more
successful. This will give you increased
odds of winning the client.
Monteiro

CAMPAIGN PLANNING
QUESTIONS
• What are my relative vulnerabilities? This is the corollary to
number four above. Maybe you have less experience than
the competition. Maybe another company is the incumbent service
provider and you are the challenger. Maybe you are usually at the
higher-end of the fee scale.
Knowing what your relative vulnerabilities are will allow you to
prepare in advance to either turn them into advantages or at least
diminish them as vulnerabilities.
With good preparation and call planning you can have your
responses to 'objections' and tough questions at the ready when you
need them.
• What are my relative vulnerabilities? This is the corollary to
number four above. Maybe you have less experience than
the competition. Maybe another company is the incumbent service
provider and you are the challenger. Maybe you are usually at the
higher-end of the fee scale.
Knowing what your relative vulnerabilities are will allow you to
prepare in advance to either turn them into advantages or at least
diminish them as vulnerabilities.
With good preparation and call planning you can have your
responses to 'objections' and tough questions at the ready when you
need them.
Monteiro

CAMPAIGN PLANNING
QUESTIONS
• What actions do I need to take before the next call?
We all have to-do lists that help us do what we need to get
done. By taking the time to answer questions 1 through
5, your business development and sales call planning to-
do list will be as good as it possibly can be because your
actions will be:
– Informed by the knowledge of your client's situation
– Guided by your goals for the client from a business development
perspective
– Built to help you achieve your desired outcomes
– Planned with the knowledge of your relative strengths and
vulnerabilities in this particular business development situation
•
• What actions do I need to take before the next call?
We all have to-do lists that help us do what we need to get
done. By taking the time to answer questions 1 through
5, your business development and sales call planning to-
do list will be as good as it possibly can be because your
actions will be:
– Informed by the knowledge of your client's situation
– Guided by your goals for the client from a business development
perspective
– Built to help you achieve your desired outcomes
– Planned with the knowledge of your relative strengths and
vulnerabilities in this particular business development situation
• 27(c) copyright 2010 Dr Wilfred
Monteiro

Key Account Tactics
To Build Into Your Sales Program:
Critical elements of the programme
include:
• Recognising the Challenge:
• Planning:.
• Communication:
• Networking:
• Identifying customer need:
• Organisational Change:
• Delivering:
Critical elements of the programme
include:
• Recognising the Challenge:
• Planning:.
• Communication:
• Networking:
• Identifying customer need:
• Organisational Change:
• Delivering:
Monteiro

If you have any questions at all
please do not hesitate
to send a note
My email address is:
wm@synergymanager.net
If you have any questions at all
please do not hesitate
to send a note
My email address is:
wm@synergymanager.net
29

• is a nationally acclaimed
stalwart in the field of
business management with
an illustrious career
spanning over 30 years
• He is a consultant and
advisor to Board of
Directors of leading
companies & Chambers of
Commerce;
• a management trainer of
high repute who has
conducted over 2250
seminars in India and
abroad in areas of business
strategy, marketing &
organization development.
• a Visiting Professor to
premier management
institutes and staff training
colleges throughout India.
Dr WILFRED MONTEIRO
• is a nationally acclaimed
stalwart in the field of
business management with
an illustrious career
spanning over 30 years
• He is a consultant and
advisor to Board of
Directors of leading
companies & Chambers of
Commerce;
• a management trainer of
high repute who has
conducted over 2250
seminars in India and
abroad in areas of business
strategy, marketing &
organization development.
• a Visiting Professor to
premier management
institutes and staff training
colleges throughout India.
30
website: www.synergymanager.net

– http://wilfredmonteiro.blogspot.in/
– http://negotiating-wizard.blogspot.in
– http://salescoach-india.blogspot.in
– http://the-sales-champ.blogspot.in
– http://salesforce-excellence.blogspot.in
– http://strategic-selling.blogspot.in
– http://hrm-excellence.blogspot.in
– http://personal-growth-guru.blogspot.in
– http://thegreatmanager.blogspot.in
– http://leadership-by-values.blogspot.in
– http://therightetiquette.blogspot.in
Dr WILFRED MONTEIRO
please view the blogspots I have developed for my participant ongoing learning
– http://wilfredmonteiro.blogspot.in/
– http://negotiating-wizard.blogspot.in
– http://salescoach-india.blogspot.in
– http://the-sales-champ.blogspot.in
– http://salesforce-excellence.blogspot.in
– http://strategic-selling.blogspot.in
– http://hrm-excellence.blogspot.in
– http://personal-growth-guru.blogspot.in
– http://thegreatmanager.blogspot.in
– http://leadership-by-values.blogspot.in
– http://therightetiquette.blogspot.in
31
website: www.synergymanager.net
(c) copyright
2010 Dr
Wilfred
Monteiro
www.synergy
manager.net

CONTACT US
Dr Wilfred Monteiro
TELE : 91 22 9819843927
EMAIL: wm@synergymanager.net
Website: www.synergymanager.net
SYNERGY MANAGEMENT ASSOCIATES
sales force development expertise since 1993
SYNERGY MANAGEMENT ASSOCIATES
sales force development expertise since 1993
OUR AREAS OF CLIENT SERVICE INCLUDE:
• Formulating Sales Strategic Plans
• Designing of Sales Systems & Process
• Auditing Sales Processes & Practices
• Leadership & Salesforce Development
• Key Customer-Account Management
• Improvising Salesforce Motivation & Engagement
• Installing Performance Measurement Systems
• Building Customer Centric Organizations

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