Within business-to-business (B2B) in addition to business-to-consumer (B2C) sales organisations, account management comprises managing the relationship between your business as well as existing customers. The purpose of this is to explore in addition to creating more sales opportunities. Therefore, it has a fundamental role to play in facilitating business growth as well as maximising profits earned.
Frequently, when it comes to expanding upon revenue, companies turn to sales training when, in actual fact, they may find more use from focusing on training in account management. Account management channels are continuing to perform below growth expectations. The cross-sell and upsell revenue are falling short of targets.
One of the biggest opportunities, which have not been tapped with respect to increasing sales in addition to profit is increasing your current accounts. Consider the following:
- Maintaining current customers is between six and seven times less costly than developing new ones
- Repeat customers, on average, spend 67% more as opposed to people who buy once-off from you
- 60% of organisations believe that they should be making 25% or more revenue from strategic accounts
Identify your key sales accounts
As part of the broader practice of account management, organisations often embark upon a strategy of key account management (KAM). In layman’s terms, this involves pinpointing accounts that are highly valuable to your company as well as maintaining a positive business relationship with that customer or client in the long term.
It is worth underlining, at this point, that not all big accounts are strategic or – alternatively – key accounts. In order to identify your key accounts, it is necessary for you to consider the following questions:
- Is the relationship beneficial financially to you?
- Is there the potential to sell an increased number of products or services to this account in future?
- Does this account have a strategic role to play in assist your company to grow?
- Do you have access to individuals at executive level?
- Do these people have an influence over their market or, alternatively, over other potential clients?
Choose the correct account
Some customers — if they’re bigger, in a particular industry or location, a closer relationship, or merely are more open to new ideas — have an increased opportunity for growth. It is even possible to ask your customers if they would like to become more involved in a more strategic relationship with your organisation. In our experience, most buyers react in a positive manner when they are approached with this idea in mind. As a result, they become more likely to entertain other conversations with you.
The first step
The first step in the process of your account growth should include targeting those accounts that have the greatest opportunity. After this, you should develop a specific plan for each customer. A spray and pray method does not work well for real account growth.
You need to know your customer’s business and strategic agenda. We’re not just speaking about the part of the business you’re involved with, but their whole business:
- What are their corporate priorities for the coming 12 months?
- What are the massive hurdles that they are trying to overcome?
- What are their goals?
- Who are the key players?
If you want to learn more about sales account management, and master the world of sales management, then you need to do our Sales Management Course. For more information, please follow this link.
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