1. RSM International Conference, Singapore 2007 Robert Coles Director at Optima Human Resources Consultants Key Accounts Creating and sustaining key account relationships

2. RSM International Conference, Singapore 2007 What is a key account? “These are the customers in a business-to-business market identified by the selling companies as being of strategic importance.” Tony Millman “Relational Aspects of Key Account Management

3. RSM International Conference, Singapore 2007 Looking at it another way: ‘If we lost the account it would have a significant impact on our business at the end of the year.’ However, remember that just because an account is key to you, it does not mean you are key to it!

4. RSM International Conference, Singapore 2007 The key account development model Complex Level of involvement with customers Simple Transactional Nature of Customer Relationship Collaborative Mid Key Account Partnership Key Account Strategic Alliance Pre Key Account Early Key Account

5. RSM International Conference, Singapore 2007 The stages of relationship development

6. RSM International Conference, Singapore 2007 The transaction stage Sales person/ account manager Buyer/ technical purchaser

7. RSM International Conference, Singapore 2007 The early account – the bow tie BoardAdmin Ops/ Functions Key Account Manager BoardAdmin Ops/ Functions Main Contact Selling CompanyBuying Company Adapted from A. Millman and K.J. Wilson from “Key Account Selling to Key Account Management”

8. RSM International Conference, Singapore 2007 The mid key account stage - integrating Selling CompanyBuying Company Other Supervisors Operations/ Functions Directors Key Account Manager & Purchasing Manager Managers Other Supervisors Operations/ Functions Directors Managers

9. RSM International Conference, Singapore 2007 The partnership stage Board Administration Operations Key Account Manager Board Administration Operations Main Contact Selling Company Buying Company Managers Adapted from A. Millman and K.J. Wilson from “Key Account Selling to Key Account Management”

10. RSM International Conference, Singapore 2007 The strategic alliance Selling CompanyBuying Company Key Account Manager Main Contact Operations Focus Team Distribution Focus Team R & D Focus Team Market Research Focus Team Finance Focus Team Joint Management / Board Meetings Environment Focus Team Adapted from A. Millman and K.J. Wilson from “Key Account Selling to Key Account Management”

11. RSM International Conference, Singapore 2007 So, some basic premises 1.Majority of your revenue and profit comes from a small percentage of your accounts 2.Key Accounts are your major assets: Therefore they should be managed like assets to achieve the best possible results 3.Without key accounts you would be much less profitable and your cost of sale would increase dramatically

12. RSM International Conference, Singapore 2007 Which fish to chase

13. RSM International Conference, Singapore 2007 Attractiveness and Position Attractiveness = a client that complies to a certain set of principles or ways of working that make that client an attractive key account target Position = the amount of the available spend that we attract from that customer Define the principles and stick to them!!!

14. RSM International Conference, Singapore 2007 So, there are 4 types of fish! Low position high Low attractiveness high Low attractiveness Low position Dead fish! High attractiveness Low position Target fish! High attractiveness High position Key fish! Low attractiveness High position Difficult fish! Hunt hereFarm here

15. RSM International Conference, Singapore 2007 The purpose of account planning 1.To analyse your competitive position with your key customers 2.To develop a team based strategy to maximise your potential As much as possible of both these steps should be done with the account contacts!

16. RSM International Conference, Singapore 2007 The sales staircase Selling a Product / Service Making a contribution to success Deliver Products/ Services that meet specifications Provide additional services and support Contribute to business issues Contribute to corporate issues Deliver Products / Services above specifications Decreases Increases Price Sensitivity Competition Importance of Features Increases Decreases

17. RSM International Conference, Singapore 2007 The three questions 1.Where are we now? 2.Where do we want to be? 3.How do we get there?

18. RSM International Conference, Singapore 2007 Building relationships in key accounts

19. RSM International Conference, Singapore 2007 Who has the power? Formal or informal?

20. RSM International Conference, Singapore 2007 MATE Money Allies Technical expert End users

21. RSM International Conference, Singapore 2007 Use your time in the right places Senior Middle Technical Senior Middle Technical WrongRight

22. RSM International Conference, Singapore 2007 Talk the right language Senior Middle Technical Strategy Tactics Implementation

23. RSM International Conference, Singapore 2007 5 Key things to remember Relationships Reward for effort Position & attractiveness Scope of contacts and network EXECUTE YOUR PLAN, DON’T PLAN AND THEN DO SOMETHING ELSE!