Account Management Reinvented: The Role of Digital Mindset in Accelerating Sales Enablement
Consider these scenarios: Scenario 1: Before: “Good morning, Mr Brown. Thank you for meeting with me last week. Based on our discussions, we’ve created a proposal. It has just been mailed to you and you should receive it in a week. I look forward to continuing our discussions then!” After: The phone dings and announces “You’ve got mail!” A notification pops up – “Your proposal from The Good News Company needs your attention!” Scenario 2: Before: “Yes, Sarah! We’ve done business with Xtreme International for years, and that sparse file is all we have to show for it. Jacob, who handled the account for us was terrible at filing reports and updating records. When he left last month, he took everything he knew with him. If you need information, I’m afraid you’re going to have to start from scratch!” After: “Yes, they’ve been an important client for years. Everything to do with our dealings has been carefully recorded and stored in our Customer Relationship Management (CRM) system. Here, let me show you how it works so you can extract the data and information you need to service this account.” Scenario 3: Before: Brendon is trying to find the best contact within an important clients organization. He shortlists several people from previous reports filed. He must now call and find out if any of these stakeholders are still relevant to the task he needs to do. ‘There must be a better way to do this’, he thinks. After: Brendon logs into his company’s Org Chart software. He is so pleased to be able to see, at one glance, all the key stakeholders in his key account. He knows immediately who can best influence the decision he will need when he presents them with a great growth opportunity. Any information he needs about his key accounts contacts is now at his fingertips. And it’s all up-to-date! Scenario 4: Before: “We’re sorry! There seems to be a recurring problem with this download. Check your internet connection and try again later.” After: Dear Ms. Johnson, we notice you’ve been having problems downloading our most recent whitepaper. Here’s a link that lets you have immediate access. We apologize for any inconvenience this may have caused you. We’d like to offer you a $50 discount on your next purchase with us. Do any of these scenarios sound familiar? Of course, they do! We’ve all been Brendon or Sarah or any of the others to some degree or another. But wait! Before and after what?? For those of you who haven’t guessed, the right answer is digital transformation. Building a Digital Mindset Digital transformation is the integration of digital technology into various aspects of an organization. It has created a fundamental shift in how businesses operate and deliver value to their customers. It has become a strategic priority for all businesses, intending to stay relevant in the ever-evolving marketplace. One of the critical elements for successful digital transformation is creating a digital mindset within the organization. A digital mindset is an approach to thinking that focuses on embracing change, adapting to new technologies, and constantly seeking innovative ways to solve problems and improve business processes. It’s about understanding the opportunities and risks associated with digital technologies and using them effectively to optimize business performance. In today’s competitive business environment, a digital mindset is no longer optional for businesses; it’s essential for staying relevant and competitive. As technology continues to evolve rapidly, sales teams must use modern tools and strategies to stay ahead of the curve and drive business growth. Let’s explore how a digital mindset is powering the next wave of growth in account management and its subsequent impact on sales enablement. Watch Now: Prasad Varahabhatla (Senior Director, Sales & Data Operations at Philips) shares about Digital transformation within sales function Understanding Key Account Management and Sales Enablement Before understanding the role of a digital mindset, let’s take a look at the fundamentals of key account management and sales enablement. Key Account Management: It’s a strategic approach to managing and nurturing relationships with a company’s most valuable customers or ‘key accounts’. These clients typically bring in the most revenue or have strategic value. Effective Key Account Management involves building strong relationships, understanding customer needs, and delivering exceptional service. Sales Enablement: It’s the process of providing sales teams with the necessary tools, resources and training to sell more effectively. It includes everything sales teams need to better understand their customers, communicate the value of their products or services, and close deals successfully. The Role of Digital Mindset in Key Account Management Check out our Masterclass to level up your Key Account Management on the topic ‘Making Account Plans Actionable, Measurable and Sustainable’ A digital mindset can transform Key Account Management, enabling sales teams to adapt and thrive in the ever-changing B2B landscape. Here are some ways in which a digital mindset influences Key Account Management: Embracing Technology: A digital mindset encourages sales teams to make the best use of technology to improve their account management processes. By employing digital tools, teams can streamline their workflows, automate repetitive tasks, and focus more on high-value activities, such as relationship-building and strategic planning. Information-led decision-making: A digital mindset emphasizes the importance of decision-making based on the data available. Sales teams can draw on data analytics and AI-powered tools to gain insights into their key accounts, identify new opportunities and make more informed strategic decisions. Personalization: Digital tools and strategies allow sales teams to offer a more personalized experience to their key accounts. By leveraging data and AI-powered tools, teams can better understand their customers’ journeys, preferences, needs and pain points. This allows them to tailor their offerings and communicate more effectively. Agility and Adaptability: A digital mindset creates an agile and adaptable approach to Key Account Management. This means sales teams can quickly adapt to changing market conditions, customer expectations, and technological advancements. This ensures they stay ahead of the competition. Impact of Digital Mindset on Sales Enablement The
Key Account Manager vs Sales Manager: Navigating the World of Digital Key Account Management
Is a key account manager the same as a sales manager? Meet Anna, a diligent Sales Manager at Brilliant Solutions, a thriving software company specializing in cutting-edge automation tools. Her daily tasks revolve around driving sales, managing the sales team, and ensuring sales targets are met. She focuses on generating leads, closing deals, and keeping her team motivated to push their limits. With a knack for numbers and an eye for detail, Anna tracks her team’s performance and ensures they have the necessary resources to succeed. On the other side of the same office is Ted, an experienced Key Account Manager. A typical workday for Ted involves nurturing long-term relationships with Brilliant Solutions’ most valuable clients. He’s the go-to person for these clients, addressing their unique needs and ensuring they receive personalized attention. Ted is a master of collaboration, working closely with various departments within Brilliant Solutions to guarantee top-notch service for his key accounts. While both Anna and Ted contribute to the organization’s success, their roles differ in critical ways. There are plenty of similarities between the roles of a Sales Manager and a Key Account Manager, but equally, they are quite different. While we examine these, let’s also look at how each role can benefit from Digital Key Account Management. Similarities between Sales Managers and Key Account Managers You might be wondering if is key account manager a sales job. Both Sales Managers and Key Account Managers play essential roles in driving business success. They share some core responsibilities like: 1. Revenue generation Sales Managers: Focus on acquiring new customers and achieving sales targets. Sales Managers aim to expand the customer base and generate revenue for the company. To achieve this, they devise and implement sales strategies tailored to their target market. They set measurable goals for their team, ensuring that the company meets its financial objectives. Sales Managers also monitor their team’s performance, providing guidance and coaching when necessary. Key Account Managers: Responsible for maintaining and growing revenue from existing high-value clients. Key Account Managers focus on the company’s most valuable clients, striving to maintain and grow their revenue streams. They analyze client data to identify opportunities for upselling and cross-selling and devise strategies to improve client satisfaction. By fostering long-term relationships, Key Account Managers ensure a steady flow of revenue and increase the client’s lifetime value. 2. Collaboration Sales Managers: Work closely with marketing, product development, and customer support. Sales Managers recognize that collaboration is critical for business success. They partner with the marketing team to create campaigns that generate leads and align sales strategies with overall company objectives. Sales Managers also collaborate with product development and customer support to ensure a smooth sales process and exceptional after-sales experience. Key Account Managers: Collaborate with different departments to develop custom solutions and services for key clients. They understand the importance of interdepartmental cooperation in meeting the unique needs of their high-value clients. They collaborate with product development to create customized solutions, work with marketing to develop tailored promotional materials and liaise with customer support to ensure their clients receive exceptional service. This cross-functional collaboration helps maintain strong relationships and client satisfaction. 3. Relationship building Sales Managers: Foster relationships with clients and team members. By cultivating relationships with both prospective and current clients, Sales Managers can secure sales and ensure customer loyalty. They understand that building trust and rapport with clients is crucial for long-term success. In addition to external relationship-building, Sales Managers focus on nurturing strong internal relationships. They motivate their team, offer support, and foster a positive work environment that encourages growth and collaboration. Key Account Managers: Excel at nurturing long-term relationships with high-value clients. High-value clients are critical to the success and longevity of the business. Key Account Managers develop the special skillset to foster and maintain long-term relationships with these high-value clients. They take the time to understand their clients’ unique needs, provide personalized attention, and consistently exceed expectations. By demonstrating genuine interest and commitment, Key Account Managers strengthen client loyalty and ensure continued revenue growth. Differences between Sales Managers and Key Account Managers Despite the similarities, Sales Managers and Key Account Managers have differences in their roles. Some key aspects where these differences can be seen are: 1. Client scope: Sales Managers: Focus on the broader market and on growing the customer base. Sales Managers concentrate on the overall market, seeking to acquire new clients and grow the company’s customer base. They manage the sales pipeline, monitor the flow of leads and opportunities, and ensure that their team actively pursues potential clients. Key Account Managers: Concentrate on a select group of high-value clients. Key Account Managers dedicate their time and effort to a select group of high-value clients. They focus on retaining and growing these relationships. They prioritize the unique needs of these clients, delivering customized solutions and services that cater specifically to their requirements. 2. Long-term vision Sales Managers: Driven by short-term sales targets. They are primarily concerned with achieving short-term sales targets. Sales Managers thus focus on generating revenue quickly and efficiently by closing deals and meeting their teams’ sales quotas. Key Account Managers: Emphasize long-term growth and client retention Key Account Managers, on the other hand, prioritize long-term growth and client retention. Their primary goal is to ensure key accounts remain loyal and satisfied with the company’s products and services over an extended period. By focusing on nurturing these relationships, Key Account Managers contribute to the company’s long-term success and stability. 3. Problem-solving Sales Managers: Address general client concerns and overcome objections. Sales Managers work to sell the company’s existing products and services. They do this by addressing general client concerns and overcoming objections during the sales process. They use their expertise in the company’s offerings and their understanding of the target market to provide solutions that meet the clients’ needs, ensuring a smooth sales experience. Key Account Managers: Coordinate custom solutions for client-specific issues. Key Account Managers take a more tailored approach to problem-solving. They act
B2B Revenue and the (Ir)relevance of the Funnel
Originally published in Forbes Business Development Council Traditionally, one of the core concepts of sales and marketing is the sales funnel through which companies are supposed to move prospects from awareness through consideration to engagement, and finally to purchase. Here are three examples where this breaks How does funnel make sense if 67% of the sales cycle is completed on digital channels before contacting the company? Opportunities from existing customers in the case of cross-sell & upsell start at the bottom of the funnel. In case of ‘booked’ revenue, typical opportunities don’t get created most of the time, so funnel is not even in the picture here. Is the B2B Sales Funnel relevant anymore? One of the main issues with the sales funnel, especially in the B2B industry, is that the customer journey is no longer linear. Prospects no longer enter at just the top of the funnel. Customers come in at any stage and often jump stages or move back & forth between them. Since customer acquisition has changed within the B2B sphere, the sales funnel is a bit outdated. What happens in a conventional sales funnel? Marketing generates a bunch of leads and passes the qualified ones to sales who then attempt to win the deals. Several B2B companies offer not only many solutions, but solutions that involve long-term engagements with their customers. For such organizations, winning the deal is only the beginning. In certain cases, Key Accounts are further identified which are given additional attention. In order to bypass the inconsistencies that the ‘sales funnel’ approach brings, a shift in perspective might be necessary. What if B2B sales and marketing are seen from the perspective of distinct revenue streams? The 4 streams of revenue for a B2B Company There are four primary sources of revenue for any B2B company. New revenue – Opportunities from new customers Renewal revenue – Renewal opportunities from existing customers Booked revenue – Revenue contribution from existing contracts for a multi-year engagement. This is different from renewal revenue in the sense that product/services have to be delivered to realize the revenue. Opportunities rarely get created in the CRM for this stream of revenue. Cross-sell/ Upsell revenue – Cross-sell and Upsell opportunities from existing customers. The approach to each of these revenue streams is different. Depending on which of the four sources contribute to the most revenue in your organization, the approach changes. The major revenue streams will determine the sales and marketing strategy, and corresponding sales and marketing tech stacks. Which revenue stream is dominant in your industry? Industries/ Revenue Streams New Revenue Renewal Revenue Booked Revenue Cross/Up Sell Revenue Mid to Large Business Services 5-10% 5-10% 60-70% 10-20% Mid to Large B2B SaaS companies 15-25% 65-70% 5-10% 15-25% Mid to Large Manufacturing/Industrial 20-30% 5-10% 60-70% 10-20% Small companies / Early stage solutions 30-50% 30-50% 10-20% 10-20% Depending on the industry and size of an organization, its dominant revenue stream varies. For Mid to Large Business Services such as IT, Professional, Staffing, Marketing, Outsourcing, the dominant source of revenue is ‘Booked Revenue’ For Mid to Large B2B SaaS companies, ‘Renewal Revenue’ should be prioritized For Mid to Large Manufacturing/Industrial, ‘Booked Revenue’ is the most dominant source For Small companies – Early stage, commoditized or undifferentiated products/solutions- ‘New Revenue’ and ‘Booked Revenue’ dominate revenue streams. A point to note in all these different types of industries, cross-selling and upselling are often the second leading source of revenue. This stream is also the biggest contributor for the account growth. Revenue streams should shape your sales and marketing approaches. Depending on which revenue stream is most dominant in the industry, the sales and marketing approaches should change. Each type of revenue stream requires different teams and different aspects of sales and marketing to be prioritized. This does not mean that there is no overlap between the sources of revenue or the sales and marketing approaches they require. However, it does imply that optimizing and streamlining them can help your ROI. Winning the CFOs approval: How to Present RoI of a Key Account Management Software What should companies seek in a revenue platform? An ideal revenue platform enables a business to efficiently and effectively manage its revenue streams. Such a platform should have several key features that make it the go-to solution for businesses looking to optimize their revenue streams. 1. New Revenue Platform If you are looking to increase revenue from ‘New Revenue’ sources, it’s necessary to have a specialized tool that can help convert more deals by finding more leads with the aid of prospecting tools. Sales Tools for New Revenue A perfect sales tool for optimizing new revenue streams should ideally have Sales automation for repetitive tasks Visual sales pipeline management to track deals, manage sales stages, and monitor progress. Customer relationship management with a centralized database Sales forecasting with insights for revenue forecasting and trend analysis. Gong is a great example of this – it uses AI to analyze sales conversations and give you data-driven advice on how to close deals faster. Such a platform captures and analyzes data from customer interactions to help sales teams make data-driven decisions. In case of large deal sizes, a platform like DemandFarm’s Opportunity Planner makes large deal management easier. Such a platform provides a systematic and collaborative approach to planning and closing large, complex enterprise deals. This is done by integrating proven sales methodologies with strong stakeholder management to enable faster deal closures. Marketing Tools for New Revenue A perfect marketing tool for optimizing new revenue streams should have features including: Lead generation capabilities through various channels Marketing automation for repetitive tasks Customer segmentation to create targeted campaigns Analytics and reporting to track campaign performance, analyze trends, and identify opportunities for optimization. A tool such as HubSpot is an all-in-one marketing, sales, and customer service platform that helps businesses to grow and manage their customer relationships. Such a marketing tool enables businesses to create and track
The Ultimate Guide to Global Account Management: Framework, Strategies, and Best Practices
In the competitive landscape of international business, there was a company called WorldWideTech. With a strong presence in several countries worldwide, WorldWideTech had made a name for itself as a leading provider of cutting-edge technology solutions. As the company expanded its operations, it had high hopes for continued growth in the global market. However, the path to success was proving to be more challenging than anticipated. The management team quickly realized that they were facing a number of obstacles in their quest for global presence. Among the challenges was gaining visibility into various aspects of their strategic accounts, leveraging best practices from different teams, and institutionalizing processes and systems to ensure smooth operations across their international offices. The situation was beginning to look dire, and the company’s leaders knew that they needed a solution – and fast! This is where Global Account Management (GAM) comes into play. This approach offered a comprehensive framework that would help WorldWideTech tackle its challenges head-on and achieve its growth objectives. Intrigued by the potential benefits, the company’s management team decided to give GAM a try. By adopting a strategic approach, they hoped WorldWideTech would be able to build stronger customer relationships, increase sales, and ultimately strengthen their business. With a clear understanding of their global accounts and customized strategies tailored to each market, they would be able to overcome the challenges of cultural differences and local business practices. This Ultimate Guide to Global Account Management helps with exactly that! It provides the tools and knowledge to take Global Account Management to the next level and unlock your business’s full potential. Read Now: 4 Ways To Optimize Your Global Key Account Management Understanding Global Account Management Embarking on the Global Account Management journey may seem a bit daunting at first! But here’s a breakdown of what it includes, the importance it holds for businesses and an overview of a comprehensive Global Account Management framework. What is Global Account Management? Global Account Management (GAM) is a strategic approach to managing and nurturing relationships with key customers across multiple international markets. It includes the alignment of sales, marketing and customer service efforts to deliver a consistent, tailored experience to global clients. GAM aims to optimize the value generated from these key accounts, fostering long-term partnerships and maximizing profitability by understanding the unique needs of each market and customer. Importance of Global Account Management for Businesses It is crucial for businesses looking to expand into international markets to implement Global Account Management. Here are some reasons why: Sales growth: By nurturing relationships with key global accounts, businesses can capitalize on upselling and cross-selling opportunities, driving revenue growth. Customer retention: Strong account management practices result in improved customer satisfaction, leading to higher customer retention rates and reduced churn. Competitive advantage: Effective GAM strategies allow businesses to anticipate customer needs, stay ahead of market trends, and differentiate themselves from competitors. Streamlined operations: GAM encourages cross-functional collaboration, ensuring that various teams within the organization are working towards common goals. This leads to more efficient operations. Risk mitigation: By understanding the unique needs and preferences of each global market, businesses can better navigate cultural differences and local regulations, mitigating potential risks. Overview of Global Account Management Framework An effective Global Account Management framework is composed of several key components. When these are executed together it results in business success in international markets: Account segmentation: Identify and prioritize key accounts based on criteria like revenue potential, strategic importance and growth opportunities. Account planning: Develop customized plans that outline objectives, strategies, and account items tailored to the unique needs and preferences of each global account. Cross-functional collaboration: Encourage collaboration between sales, marketing, customer service and other departments to ensure excellence in customer experience. Global Account Management Performance metrics: Establish clear metrics to measure the success of your GAM strategies viz. customer satisfaction, revenue growth and customer retention. Cultural adaptation: Train your global account teams to understand cultural differences, navigate language barriers, and be respectful of local business practices. This helps build stronger relationships with international clients. Continuous improvement: Regularly review and adjust your GAM strategies based on performance metrics, feedback and market changes to ensure continued success. Let’s take a look at some important aspects of the Global Account Management framework to ensure that your business thrives in the global arena. Key Components of Global Account Management Framework A strong framework will better help you navigate the world of Global Account Management. This framework serves as the backbone of your international success. It will also help you navigate the many complexities of managing global accounts. Identifying and segmenting global accounts Before diving in headfirst, it’s crucial to identify and segment your global accounts. This process involves recognizing key customers. These are customers that not only show the most potential for revenue and growth but also have strategic importance. By prioritizing these accounts you’ll have a better understanding of how to allocate resources. You can also tailor your approach to each client’s unique needs, ensuring maximum return on investment. Developing account strategies and objectives After your key accounts are identified, you will need to develop customized strategies and objectives for each. This involves understanding the specific needs, preferences and expectations of each global account. Once you have this clarity, craft account plans – outlining objectives, tactics and action items customized to each customer’s requirements. This personalized approach will strengthen customer relationships and enhance customer satisfaction and loyalty. Establishing cross-functional collaboration and communication The success of your Global Account Management efforts relies on cross-functional collaboration and communication, this means ease of information sharing between the various teams involved in managing global accounts. Having regular touchpoints, sharing progress, and discussing challenges ensure that all departments have a clear understanding of what’s going on. They can, therefore, work together to ensure that your global clients always receive the best experience. Measuring and tracking performance metrics Clear performance metrics need to be defined to ensure that your Global Account Management strategies are delivering the desired results. Identify key
Redefining Sales Enablement for the Future: The AI Advantage
The world of sales is evolving at a breakneck pace. The days of manual processes and guesswork are long gone. They’ve been replaced by a new era of data-driven insights and cutting-edge technology. A recent Salesforce study revealed that over 95% of sales operations professionals and sales leaders believe that Artificial Intelligence (AI) coupled with automation gives sales reps more time to focus on selling. A fairly large number of sales professionals also believe that AI will play a significant role in their industry in the foreseeable future. This number is growing every day. The rapid shift is causing businesses to rethink their approach to sales enablement, and one game-changing technology is leading the charge: artificial intelligence. Imagine a world where your sales team can: instantly identify high-potential leads, use detailed customer profiles to tailor sales pitches, close deals at a significantly higher rate, all while spending less time on administrative tasks. No! This isn’t a scene from a science fiction movie; it’s the reality of sales enablement powered by AI. As organizations around the globe continue to embrace AI-driven solutions, the gap between those who adapt and those who resist will only widen. As we explore the AI advantage in sales enablement, let’s dive into the benefits and innovations transforming the way businesses approach sales. Let’s look at the practical issues faced by organizations looking to adopt AI-driven strategies and prepare for the future of sales. Get ready to redefine your sales enablement strategy for the AI-driven future. Read Ebook: The Future of AI-Assisted Account Planning The AI Advantage: Key Benefits for sales enablement As we explore the remarkable impact of AI on sales enablement, it’s crucial to recognize the main advantages that artificial intelligence offers. From improved efficiency and productivity to smarter decision-making and customized customer experiences, AI is set to reshape the sales landscape. Let’s dive deeper into these benefits: 1. Enhanced efficiency and productivity Incorporating AI into sales enablement strategies not only enhances the overall performance of sales teams but also streamlines their day-to-day activities. By reducing time-consuming tasks and optimizing workflows, AI brings a whole new level of productivity to the sales process. a. Automation of repetitive tasks: One of the most significant advantages of AI in sales enablement is its ability to automate repetitive tasks, freeing up valuable time for sales representatives to focus more on strategic initiatives. Tasks like data entry, lead qualification, appointment scheduling and follow-up emails can be taken over by AI-powered tools. Free of these routine activities, sales reps can focus on nurturing relationships, closing deals and driving revenue growth. b. Streamlined sales processes: AI can streamline sales processes by optimizing workflows, reducing bottlenecks and increasing overall efficiency. AI-powered analytics can help sales teams identify inefficiencies in their sales funnel, uncover best practices, and make data-driven decisions to optimize their processes. AI can also assist in managing and prioritizing tasks. This ensures that sales reps focus on the most impactful activities. 2. Improved decision-making through data analysis The ability to make well-informed decisions is critical to the success of any sales team. By harnessing the power of AI, sales professionals can unlock valuable insights from data and make smarter, more strategic choices to drive business growth. a. Predictive analytics and forecasting: AI-powered predictive analytics can dramatically improve decision-making by providing accurate sales forecasts and identifying potential risks and opportunities. AI is characterized by advanced algorithms that analyze historical data, market trends and customer behavior. Using these algorithms, Ai can generate reliable sales predictions, enabling sales leaders to make better decisions about resource allocation, territory planning and sales strategies. b. Identification of high-potential leads: AI can help sales teams identify high-potential leads. This is done by accurately analyzing vast amounts of data and uncovering patterns that may not be easily apparent to human analysts. By leveraging AI-driven lead scoring, sales reps can prioritize leads with the highest likelihood of converting. This results in a better lead nurturing process and higher conversion rates. 3. Personalization and customer-centric selling In today’s competitive market, understanding and catering to individual customer needs is vital to stand above the competition. With AI, sales teams can design a personalized and customer-focused approach. This results in stronger relationships and increased sales success. a. AI-driven customer profiling: Understanding your customers is crucial for sales enablement. AI-driven customer profiling can help demonstrate a deeper understanding of prospects. The profiling is done by analyzing data from various sources like CRM systems, social media and website interactions. These insights can provide a comprehensive view of each customer’s preferences, pain points, and buying behaviors, enabling sales reps to craft personalized sales strategies that appeal to their target audience. b. Tailored sales pitches and content: Personalization greatly appeals to today’s consumers. And AI can help sales teams create tailored sales pitches and content that speak directly to the unique desires and needs of each customer. AI can analyze data on individual customer interactions, preferences and past purchases. Through this data, AI can then personalize sales messages and content recommendations that are more likely to engage prospects and convert them into customers. Sales teams can therefore build stronger relationships, improve customer satisfaction, and ultimately drive higher sales performance. Download: The Future of Key Account Management Report – A Global CSO study by DemandFarm AI-driven strategies: Innovations transforming sales enablement Artificial intelligence is reshaping the world of sales and strategic account management. Advancements in AI can help businesses analyze, strategize and engage with key accounts more effectively. Sales teams are rapidly adopting AI-powered digital tools. This helps them improve their strategies, enhance their productivity and ultimately, drive growth. Here are some ways in with AI can assist improvement and growth in Sales: 1. AI-assisted account planning: AI can be used to recommend ideal account plans for the year. This is done by reviewing data, sales intelligence and historical performance across a company’s portfolio of key accounts. This data-driven approach is more efficient and ultimately leads to planning and implementing more effective and impactful strategies. Read
Comprehensive Career Path Guide for a Key Account Manager
Key Account Management (KAM) focuses on building long-term relationships, and aims to improve customer satisfaction – especially in a B2B scenario. The KAM practice is essential in ensuring that a company retains its most valuable customers and that these customers receive the best possible service and support. A key account manager’s primary responsibility is ensuring that the needs of key clients are met, and that they remain satisfied with the company’s products and services. To do this effectively, they develop a deep understanding of the client’s business and their industry. This includes understanding their goals, challenges, and the competitive landscape in which their clients operate. They are also responsible for identifying new opportunities for growth and working closely with internal teams to develop strategies that drive revenue growth. They must also collaborate with marketing, sales, and product development teams to ensure that their clients receive the best possible service and support. While the key account management practice is demanding, it also offers many benefits. One of the most significant benefits is the opportunity to build strong relationships with key accounts, which can lead to long-term customer loyalty and repeat business. Additionally, the role of a key account manager offers varied opportunities for career growth and advancement, as many companies recognize the strategic importance of the position and invest in developing skills of their key accounts team. Key account management provides exposure to different departments within the company. Managers often work closely with sales, marketing, and product development teams, gaining a broad understanding of how the company operates and how different teams contribute to the overall success of the business. This exposure can provide valuable insights into different areas of the business and can help them develop a holistic view of the company. The position can be financially rewarding too, as many companies offer competitive compensation packages to attract and retain top talent in this critical role. Leading organizations also provide commissions and bonuses based on the growth and retention of their key accounts, opening up another avenue for managers to earn from skills. What does a Key Account Manager do? A Key Account Manager is responsible for managing a company’s most important clients or accounts. Their primary goal is to ensure that their clients are profitable and satisfied enough to remain loyal to the company. They achieve this by focusing on revenue and retention, and by identifying opportunities for growth and improvement. Their day-to-day activities may include conducting regular check-ins with key accounts, analyzing data to identify trends and opportunities, presenting product updates and new features, negotiating contracts and pricing, and ensuring that customer issues are resolved quickly and effectively. Regular analysis of a client’s spending habits is a crucial aspect of KAM. By understanding how much their client is spending and on what, managers can recommend ways to optimize the use of the company’s products and services. They may also suggest new products or services to address the client’s unmet needs, and help the client see how these solutions can solve their problems. While key account managers are tasked with generating additional revenue from their accounts, this is not done at the expense of the client’s satisfaction. They must balance the need for revenue growth with a deep understanding of their client’s needs, preferences, and budget. One way to generate additional revenue is to sell complimentary or upgraded products and services. Another approach is to increase the amount of business the client does with the company, either by expanding into new areas or by increasing the volume of purchases. Improving margins is also an effective way to generate additional revenue, which may involve raising prices or finding ways to reduce the cost of serving the client. Key Account Management is a relationship and service-driven role. Key account managers work with a range of individuals within a client organization, from end-users to decision-makers to CEOs. Building strong relationships and improving customer loyalty are important for long-term success. They must be able to communicate effectively with different stakeholders and adapt to the client’s changing needs and expectations. The role of a Key Account Manager is critical to the success of a company’s most important clients. Their responsibilities include managing revenue and retention, analyzing spending habits, identifying growth opportunities, and building strong relationships with key stakeholders. They help their clients achieve their goals, while also ensuring the continued growth and success of the company. Qualities required to be a good Key Account Manager A Key Account Manager plays a crucial role in maintaining a positive and productive relationship between their organization and its most important clients. To excel in this position, certain qualities are required. While these are inherent in some, they can be learned with practice. Strong collaboration and interpersonal skills: The Key Account Manager must establish and maintain warm partnerships with their key accounts, and this requires focused attention, responsiveness, and quality communication. Being able to listen, remain flexible, address a diversity of needs, and stay open, even in complicated or heated situations, are critical interpersonal skills. The ability to collaborate well with people from different company cultures is also vital. Written and spoken communication skills: Facilitating communication between all parts of their organization and those of their key accounts is a primary job of key account managers. Being able to identify the communication styles of the people they work with and tailor their approach accordingly is crucial. The Key Account Manager must be able to adapt their language to each specific audience, as different people require different communication styles. Strategic thinking: Managers should think strategically to create mutually beneficial scenarios for their key accounts and their organization. This requires careful planning and strategic thinking in areas such as operations and sales. The Key Account Manager must aim to create a win-win situation for both parties. Analytical skills: Key account managers analyze threats and opportunities within their industry and their key accounts’ industries. Financial analysis skills are often beneficial for Key Account Managers. Sales and business development skills: Increasing
Benefits of Digitalizing Your Key Account Management Program
The quest for the right solution is never-ending in B2B spheres, as organizational needs constantly change and evolve. Large organizations rely on technology to streamline their processes and improve their efficiency – and are constantly looking for tools that can help them in this regard. With digital key account management tools, sales teams can offer numerous advantages over traditional methods, including increased security, convenience, and visibility. Buyer behavior has drastically changed over the last couple of years, and a significant portion of post-pandemic interactions are expected to remain virtual. This shift in behavior has brought key account management to the forefront of many organizations’ strategies, prompting CSOs and CROs to rethink their approach to managing accounts. With key account management evolving and becoming more complex, organizations are turning to AI as a key differentiator and enabler. Meeting buyer needs with digital account management solutions Buyers have significantly changed their behaviors, and more personas are coming into the digital key account management sphere. It’s becoming critical for organizations to leverage technology to enable their employees to develop better connections with buyers. However, adding additional steps or work for the sales team can create friction and become a significant hurdle for organizations to leverage technology better. To create a frictionless and seamless process, organizations must evaluate the additional work that gets added on to the sales team when they are selling. This approach is not just about technology; it’s about how technology and processes can work together to create a better experience for everyone involved. Large clients are looking for solutions that can help them drive optimize processes, streamline growth and reduce costs. However, the decision-making process can be complex, involving multiple stakeholders, technical buyers, and influencers. As a result, companies need to have an effective key account management tool that can help them navigate this complex landscape and identify the key decision-makers within an organization. Check out more on the DemandFarm account planning masterclass on ‘Making Account Plans Actionable, Measurable and Sustainable’ here. Managing key accounts digitally is important for companies, as conversations have largely moved online – rendering the traditional methods powerless. Having tools to visualize the customer’s organizational structure, understand the influences among stakeholders, and identify key decision-makers provides much needed context for sales teams. With this context, key decision makers can use relationship maps to target the right decision makers. Start small and take a hypothesis-driven approach Every company is different, and there is no one-size-fits-all approach to implementing and managing the relationship. The best way to manage is to test at a small scale and expand organically through the learnings. Develop a hypothesis for how the objectives can be accomplished and allow teams to test them out. By collecting data to measure success, teams can adjust course where needed. Iteratively testing and learning leads to an approach that works for the organization and can be scaled organically in the sales team. Find champions Champions are the people in the organization who spearhead change and advocate for digitalization of key account management. They empower others to share the vision and help teams focus on the goal. Focus on competitive advantages Finding ways to extend competitive advantages can involve white space mapping, identifying new opportunities with existing clients, or finding new clients for existing solutions. Having a unique digital relationship strategy gives a surgical and intentional approach for how sales teams identify key areas of communication. To build trust and relationships, sales teams can play on their strengths and highlight related features prominently to meet stakeholder needs. One of the most important factors when selecting a digital key account management tool is its ability to integrate with the company’s existing solution set – so that teams don’t feel like they are using a third-party product. If the tool is easy to learn and operate, minimal training is required for employees to understand its functionalities. When implemented effectively, a digital key account management tool can transform the way companies manage their large clients. It can help sales teams to better understand their customers’ organizational structure and the key decision-makers involved in the purchasing process. This understanding can lead to more effective sales strategies and ultimately, increased revenue. Companies that work with large clients need to invest in digital key account management tools to effectively manage their relationships. By leveraging these tools, companies can gain a deeper understanding of their customers’ needs, and develop more effective sales strategies that drive growth and reduce costs. The need for digital tools to manage customer relationships Organizations have completely overhauled their strategies over the last two years, especially when it comes to customer relationship management. Small and medium sized businesses that rely heavily on personal interactions with clients now use a digital-first approach to Key Account Management. To remain relevant with customers, solution providers have to create and implement a digital account and relationship strategy that could help them retain or even grow their key relationships in this new remote world. There are a few factors that sales teams have to consider: Aiming for a data-driven approach to relationship strategy and management. As consultants, the sales team helps clients define business problems, collect data, and use that data to inform decisions that produce positive outcomes for their organization. However, by turning that lens internally, organizations can come up with a suitable approach to manage opportunities, and improve their outcomes through managing accounts and relationships. Managing culture and people changes is important while shifting to a new approach. It requires proactive and sustained communication across a variety of stakeholder groups to influence broad behavior change across the company. To make it stick, sales teams should align incentives and the way they measure things to reflect the business outcomes they really care about as a business. Enabling teams with the right tools powers them to punch well above their weight. Even with the best approach and a workforce ready for change, lack of infrastructure and relevant tools to do the work can cause frustration,
Connected Apps Ecosystem in Digital Account Management
A connected apps ecosystem in key account management involves the integration of your digital key account planning tool with other tools in your sales tech and marketing tech stack. This includes contact discovery tools, sales intelligence or conversational intelligence tools, marketing automation tools, customer success tools and revenue intelligence tools. Role of a connected apps ecosystem in digital key account planning A connected app ecosystem is critical to leverage every possible data point from the existing tech ecosystem to provide data-driven digital selling ability to sellers. When a lot of tools are used to keep track of your accounts, you will often operate in silos within your ecosystem. This leads to an increased chance of missed opportunities and ignored red flags, buyer intent to action and strategy. In turn, this affects customer retention and growth. How does sales enablement currently manage this data? Sales enablement teams are often spending hours of their valuable time collating data and processing it further for reporting. Making sense of this data and feeding it to the users on a periodic basis is time-consuming. Over time, the sales tech and marketing tech landscape for most B2B organizations becomes crowded. For a salesperson, each of these apps delivers value – sales intelligence tools, sales forecasting tools, customer success tools, marketing automation tools, Account-Based Marketing tools, and lead generation tools. Companies today have dozens of SaaS apps to solve many point problems in every department. As technological solutions become more easily accessible, the number of apps being utilized will only increase. How do you keep track of all of this data? Does it become overwhelming for the sales team? Check out DemandFarm’s free, on-demand Masterclass on ‘Making Account Plans Actionable, Measurable and Sustainable’ now! Challenges encountered with heavy sales tech stacks There are five main challenges that arise with heavy tech stack. They are, Non-optimal ROI from tools No Cross-Pollination of data No visibility into Risks and Customer Sentiment in the right context Excess time spent on maintenance App Fatigue from using too many tools Most of the sales tech and marketing tech apps will have data at an organizational and enterprise-wide level. For any user to extract the maximum value out of all, they would need to log into each of these apps individually. This can not only be a highly laborious task but also leads to data silos, productivity loss and what is commonly called ‘App Fatigue’. For any sales organization to make complete sense of the data generated by each of these disparate apps, it is important that they not only talk to each other but are also able to deliver contextual value at the right time for a sales or marketing person to maximize impact. If these data sources are contextualized to strategic accounts then key account managers gain better insights. Optimizing a connected apps ecosystem with your digital account planning tool A single place for Account Intelligence can serve as a perfect place to plug in critical data points in the right context of Account Planning. Integrating your Account Planning solution with other sales tech to enrich the data quality and plan your account strategy can lead to better results both in the short term and long term. When bringing all of these data together, additional value can be found in the form of actionable insights that can be extracted from these data silos. 1. Integration with contact discovery tools: The benefit of integrating with Contact Discovery Tools is to get auto-populated data within your account planning tool rather than having to build it from scratch each time. 2. Integration with sales intelligence and conversational intelligence tools: This will enrich the existing data of your key accounts. Such an integration would enable gathering intel from calls and surfacing it in various parts of your digital account planning tool for further analysis to help strategize and grow your key accounts. Accurate B2B buyer intent data allows you to identify exactly if and when a B2B prospect is actively considering, or looking to purchase your product or solution. This enables informed and timely campaign decisions for your sales and marketing team. 3. Integration with Marketing Automation tools: By integrating marketing automation tools with your digital account planning tool, Key Account Managers can get access to marketing data which helps in better qualification of leads, better conversions, better engagement and hence stronger relationships. When product demand, white space identification and targeted marketing data collectively comes together with your account planning data, you get good insights across your key account portfolio. 4. Integration with Customer Success tools: The benefit of this integration is to equip client-facing teams with key insights regarding customers’ post-sale journey. This brings in increased transparency and alignment. It can help view and track all relevant metrics from your customer success tool and digital account planning tool in one place for better planning. This further enables client-facing teams to formulate informed strategies. DemandFarm’s connected apps ecosystem DemandFarm optimizes your account planning in a connected apps ecosystem in the following manner: 1) By being native to Salesforce, DemandFarm ensures consistency and continuity in your experience 2) By working with your sales enablement team to gather use cases of how 3rd party application data can be brought into DemandFarm and made available at the right junctures enabling timely, appropriate interventions as needed for your key accounts. 3) By leveraging the data from these 3rd party apps, our insights engine can generate powerful and intelligent nudges, recommendations and contextual insights to make your teams more productive and impactful. 4) By specializing in key account planning and management, DemandFarm enables connection to multiple apps, leveraging data from them and contextualizing it to key accounts. Check out DemandFarm’s free & on-demand masterclass on digital account management on ‘Making Account Plans Actionable, Measurable and Sustainable’ here.
65+ Essential Key Account Management Terms Explained: Key Account Management (KAM) Glossary
KAM Glossary (with 68 Definitions) To help strategic account managers / key account managers /sales professionals enhance their understanding of Key Account Management (KAM), this glossary provides clear and concise definitions and explanations of essential terms, definitions, and concepts related to key account management. What is key account management? Whether you’re new to Account Management or a seasoned KAM professional, this glossary can help you improve your knowledge of account management & strategic selling strategies and build stronger relationships with your most important customers. Key Account Management Glossary: 65+ Crucial Account Management Terms Explained Account Hierarchy: Account Hierarchy is the structure and organization of key accounts within a company visualized in a hierarchical system of decision-makers and stakeholders. Account Management Account management is a strategic approach to managing business relationships with key customers or clients. The goal of account management is to develop and maintain long-term relationships that create value for both the customer and the business. Account Mapping The process of representing customer-centric data points and relationship dynamics in a visual way is known as Account Mapping. It is used by sales and account management teams to understand how customer organizations work, identify key decision-makers, and plan their course of action. Account Planning Account Planning is the process of developing a strategic plan for managing and growing key accounts, typically involving collaboration between sales, marketing, and customer success teams. Account Planning Software Account Planning Software refers to technology solutions or tools designed to support the key account management process, typically featuring tools for account segmentation, account planning, account reviews, relationship mapping, and opportunity management. Account Planning Templates Account planning templates are structured, pre-defined blueprint documents used to manage strategic & key accounts. They include key details about the client, such as strategic goals, relationship maps, opportunities and challenges, action plans, and success metrics. They help ensure a consistent and focused approach to account management. Account Review Meetings Regular meetings between a company and its key accounts to review progress, identify challenges, and set goals for future growth and collaboration. Account Segmentation The process of dividing a company’s customer base into groups or segments based on factors such as size, industry, and revenue potential. Account-Based Marketing (ABM) A marketing strategy that is aligned with account-based sales, focusing on targeting high-value accounts with personalized, targeted campaigns. Account-Based Sales / Account-Based Selling (ABS) ABS or Account-Based Sales / Selling is a sales strategy that focuses on targeting a specific set of high-value accounts and tailoring sales and marketing efforts to their unique needs and preferences. Champions Champions are Individuals within a key account who are advocates for a company’s products or services and are willing to help promote and support their adoption within the organization. Consultative Selling Consultative selling is a sales approach focused on building relationships with customers, understanding their unique needs, and providing customized solutions based on valuable insights and expertise. The goal is to establish trust, drive sales, and help customers achieve their business objectives. Contract Renewal Management The process of managing the renewal of contracts with key accounts involving negotiation, pricing, and value proposition analysis is known as Contract Renewal Management. Cross-selling The process of selling related products or services to existing customers, typically with the goal of increasing revenue and customer lifetime value is called Cross-selling. Customer Acquisition Cost (CAC) The total cost associated with acquiring a new customer, including marketing and sales expenses. Customer Advocacy The process of mobilizing key accounts to become advocates for a company by getting testimonials, case studies, and referrals. Customer Churn The rate at which customers stop doing business with a company over a given period of time. Customer Feedback Information and insights provided by customers about their experiences with a company’s products, services, and support. Customer Journey The path that a customer takes from initial awareness of a product or service to becoming a loyal advocate. Customer Journey Mapping The process of visualizing and analyzing the various touchpoints and interactions that a key account has with a company is Customer Journey Mapping. It is used to identify opportunities for improvement and optimization. Customer Lifetime Value (CLV) CLV is a metric that represents the total value a customer is expected to bring to a company over the course of their relationship. Customer Retention The process of maintaining ongoing relationships with existing customers, with the goal of reducing churn and increasing lifetime value. Customer Segmentation The process of dividing a company’s key accounts into groups based on their specific needs, preferences, and behaviors, often used to inform targeted sales and marketing strategies is Customer Segmentation. Customer Success A function within a company that is focused on ensuring customer satisfaction, retention, and long-term value. Detractors Individuals within a key account who are resistant to a company’s products or services and may actively work against their adoption or use within the organization are Detractors. Digital Key Account Management The use of digital tools and platforms to manage relationships with key accounts is Digital Key Account Management. It involves the use of a combination of connected applications like Key Account Management Software, CRM software, data analytics, and communication tools. Enterprise Deals Large, complex deals involving multiple decision-makers and stakeholders within a key account, often requiring a high degree of relationship-building and strategic planning. Executive Sponsorship A key account management strategy that involves engaging senior executives from both the company and the key account in the relationship-building and growth process. Global Account Management The process of managing relationships with key accounts across multiple regions and countries, often involving a complex network of decision-makers and stakeholders is called Global Account Management. Influencer An influencer is an individual or group within a customer’s organization who has the ability to affect or shape the decision-making process related to the purchase of a product or service. Influencers are not necessarily the final decision-makers, but they can play a crucial role in influencing the decision-making process by providing information, insights, or recommendations to decision-makers. Joint Business Planning A collaborative
Challenges in Digital Key Account Management Adoption and the need for Change Management
Digital Key Account Management is the process of managing and growing a company’s most important customers using digital tools and technologies. It is essential for Sales Enablement, as it enables businesses to manage their key accounts more efficiently and effectively. However, adopting Digital solutions for your Key Account Management process comes with its set of challenges. Challenges in adopting Digital Key Account Management for Sales Enablement 1. Integration with Existing Systems One of the main challenges of adopting Digital Key Account Management is integrating it with existing systems. Many businesses use a variety of digital tools and platforms to manage their key accounts, such as Customer Relationship Management (CRM) systems, Marketing Automation software, and Business Intelligence tools. Integrating a new Digital Key Account Management tool with these existing systems can be complex and time-consuming, requiring significant investment in IT infrastructure and resources. Finding a solution that can integrate well into your existing sales tech stack is thus essential. 2. Maturity Level and Discipline Before adopting Digital KAM tools, businesses need to assess their readiness to leverage these tools effectively. This requires having a clear understanding of the organization’s maturity level and discipline. Is the organization ready to adopt a digital approach to account planning, and does it have the discipline to use it effectively? Implementing Digital Key Account Management tools requires discipline, as it involves following a set of processes and procedures consistently. Therefore, businesses need to assess their level of discipline and maturity before adopting. 3. Account Complexity As accounts grow in complexity, businesses need a strategic view to manage them effectively. Digital Key Account Management tools can help businesses manage complex accounts effectively by providing a comprehensive view of the account and its activities. Therefore, businesses need to assess the complexity of their accounts before adopting Digital KAM tools. 4. Changing Client Needs Businesses are constantly evolving, and client needs are changing rapidly. Therefore, businesses need to keep a dynamic planning approach to stay aligned with their changing needs. There is a need to stay aligned with their clients’ changing needs by providing real-time data and analytics. Therefore, Digital Key Account Management tools need to be able to keep up with the evolving needs of their clients. 5. Resistance to Change One of the biggest challenges of adopting Digital Key Account Management is resistance to change. Many sales teams may be hesitant to adopt new digital tools and technologies, as they may be comfortable with their existing processes. Resistance to change can slow down the adoption process, and even derail it altogether. Sales Enablement leaders must work with sales teams to overcome resistance to change by showing them the benefits of the digital tool being adopted and providing training and support, and involve them in the decision-making process. Need for Change Management Sales teams and stakeholders need to both be on board with changes. Here are a few reasons why change management is necessary for successful implementation of digital account planning solutions: 1. Combating Resistance to Change As mentioned earlier, one of the biggest challenges to adopting digital key account management solutions is resistance to change. With the right change management processes, this resistance can be curbed. Enthusiastic early adopters and tech-savvy team members who are less resistant to change are vital to overcoming the inertia that usually follows any major changes that are implemented in a digital ecosystem. 2. Clear Communication Effective communication is critical in any change management initiative, including Digital Key Account Management. It is essential to communicate the changes, the reasons for the changes, and how the changes will affect the sales team overall and other stakeholders. Clear communication can help to ensure that everyone is on the same page and that there is a shared understanding of the goals. 3. User Adoption If the sales team and other stakeholders do not adopt the new digital tools and processes, the implementation will not be successful. Change management can help to ensure that the sales team and other stakeholders are prepared to adopt the new digital tools and processes by providing training and support and involving them in the decision-making process. 4. Managing Expectations It is essential to set realistic expectations about what a shift to digital account planning can achieve and the timeline for achieving those outcomes. Managing expectations can help to avoid disappointment and frustration, which can lead to resistance to change. Download: Change Management Guide for Sales Leaders to Implement Digital Account Management Software How does one go about championing a change to Digital Key Account Management? There are three main criteria that go into championing the change to Digital Key Account Management 1. Aligning with your organization: Did you know that the tools and language used in the organization’s daily life might not be the same as the standard? It’s important to make sure that the requirements are aligned before implementing anything. Plus, aligning with previously existing systems also reduced naysayers when it comes to the adoption of a new digital Key Account Management tool. 2. Getting a team of ‘Advocates’: Having a group of beta testers or advocates can make it much easier to introduce new tools to your organization. These advocates are essentially super users who have tried out the tool, which means any issues can be sorted out before they roll it out to the organization. Plus, they can help others get trained on the new system, acting as champions for the change. Having these ‘advocates’ on board can make a huge difference when it comes to shifting to a digital key account management practice. Ensuring that you have the right early adopters is essential for showing value. It takes time to embrace change, and the right early adopters can speed up the process to show the value of adopting a new digital ecosystem that might be something they are not used to. It is a challenge to set aside time to take up something new, but enthusiastic early adopters can accelerate this adoption. 3. Support from
