5-Step Framework to Convert Any Business into a Wealth Generation Machine.pdf
Managing the customers you can't afford to lose Part 2
1. Managing the
customers
you can’t
afford to lose
Part 2 : How to
• Monitor Health of the Relationships
• Grow Sales & Profits
This webinar will give you insights and a
tool to help you manage the customers that
generate most of your revenue or most of
your profit.
2. Gary Peacock
MBA, MSc, GAICD, Grad. Cert. Change Management & BEng
Head of Innovation and Research, Gordian Business
A specialist in improving and sustaining business performance. Gary works with senior managers on
strategic issues to change private and public organisations to produce better results.
Gary has over 20 years experience having worked in the UK and Australia in various capacities, including
sales, engineering, production and service. This enables him to understand the challenges of changing
the daily behaviours of staff. Gary’s latest book, Persuading for Results, published in 2011, is also
available as an ebook.
Gary has a Masters degree from Cranfield, a leading technology school in the UK and an MBA from
leading business school in Australia - The Australian Graduate School of Management. Gary teaches
Change Management online at The Australian Graduate School of Management. He is a member of the
Australian Institute of Company Directors. Gary presents the Macquarie Graduate School Of Management
Program, Strategic Account Management.
+61 2 9450 1040
www.gordianbusiness.com.au
3. Poll for Webinar
Please indicate % share of total
revenue from your Top 5 accounts:
0% - 20%
20% - 40%
40% - 60%
> 60%
Don’t know
+61 2 9450 1040
www.gordianbusiness.com.au
4. Agenda for Webinar
• Monitoring the health of key
relationships, both strategically
and operationally
• Linking account management to
the performance of sales revenue
and profits
+61 2 9450 1040
www.gordianbusiness.com.au
5. Agenda for Webinar
• Monitoring the health of key
relationships, both strategically
and operationally
• Linking account management to
the performance of sales revenue
and profits
+61 2 9450 1040
www.gordianbusiness.com.au
6. Whatever got you to where you are today
will not be sufficient to keep you there! +61 2 9450 1040
www.gordianbusiness.com.au
7. The secret of developing
stronger relationships is…
…building a better fit between the potential
value and current value your business offers
to a specific account (or prospect).
9. The Account Value Chain
A series of activities your business undertakes to serve their customers
(and use your products). Your business has the opportunity to ‘add
value’ at any links in that chain.
Financial Services
Source &
Create new Borrow Lend Operate
manage
products money money branches
customers
Manufacturing
Design Make Deliver Service
Sell
products products products products
10. What processes do you need to
ensure you have good relationships?
• A value proposition for each key
account; Yes, really!
+61 2 9450 1040
www.gordianbusiness.com.au
11. A Value Proposition: Some Tips
• The one or two points different from
competitors that deliver the greatest
value to this customer
• Concentrate on what you have already
delivered up to now; not what you
could deliver in the future
+61 2 9450 1040
www.gordianbusiness.com.au
12. Poll for Webinar
Do you have an account plan that
is reviewed:
Every 3 months or less
Every 6 months
Every 9 months
Every 12 months
Don’t have a plan or don’t
review
+61 2 9450 1040
www.gordianbusiness.com.au
13. Poll for Webinar
Is your account plan reviewed with
other departments:
Yes, reviewed with
other departments
No, not reviewed with
other departments
Don’t have a plan or
don’t review
+61 2 9450 1040
www.gordianbusiness.com.au
14. What processes do you need to
ensure you have good relationships?
• A value proposition for each key
account; Yes, really!
• An account plan
• A 90 day account review in your
organisation
– Not just sales
– Attended by senior managers
– Attended by department representatives
+61 2 9450 1040
www.gordianbusiness.com.au
15. Agree different meetings;
Don’t mix operational and strategic
Forum Your Customer
(Frequency) Organisation
Operational Name (1) Name (1) STRATEGIC:
(Weekly, 2 Weekly, Name (2) Name (2) For example, ideas,
every month, every 3 Name (3) Name (3)
information and
months, every 6 Name (4) Name (4)
months) contacts to…
Commercial Name (5) Name (5) Improve the customer’s
(Weekly, 2 Weekly, Name (6) Name (6) competitive advantage
every month, every 3 Name (7) Name (7)
Improve customer’s
months, every 6
customer satisfaction
months)
Strategic Name (8) Name (8) Improve customer’s
(Every month, every 3 Name (9) Name (9) employee satisfaction
months, every 6 Name (10) Name (10) Reduce the customers
months, every 12 costs
months)
16. Watch for any early warning signals of
deteriorating relationships.
• Look at the last quarter and the last year. How much
resource (time, money and people)
– are the customer committing to the relationship?
– are your organisation committing to the
relationship?
• Don’t listen to the words, watch the commitment of
resource (time, money and people)
• Watch out for one-sided relationships
+61 2 9450 1040
www.gordianbusiness.com.au
17. Agenda for Webinar
• Monitoring the health of key
relationships, both strategically
and operationally
• Linking account management to
the performance of sales revenue
and profits
+61 2 9450 1040
www.gordianbusiness.com.au
18. Insanity is doing the same thing, in the same way, and
expecting a different outcome.
Einstein
20. Manufacturing Company
$600 million Sales
65 Customers
6 59
Customers, 47 Customers, 53
% %
5 Customers growing at market rate
1 growing at 30% above market rate, In 5 years,
already 10% of sales
1=30% of sales?
21. Some questions about
growing sales
1. Do you know which
customers you would What processes
prefer to grow? do you have to
ensure the
answers to
2. Which customers do you
make special offers to? questions 2 and 3
3. Which customers do you are the same as
rely on for last minute the answers to
orders to meet your
budgets? question 1?
+61 2 9450 1040
www.gordianbusiness.com.au
22. A final question about
growing sales
Do we know if our
customers make more
money doing business
with us versus the
competitor?
Owen Cornings Question
+61 2 9450 1040
www.gordianbusiness.com.au
23. Client Activity: Value-Cost Matrix
Leverage
Great
High opportunity
How much Reduce Cost?
does the
customer
value the Fair Question
activity? Low
Why?
Low High
Cost to provide by you
+61 2 9450 1040
www.gordianbusiness.com.au
24. Let us not be
content to wait and
see what will
happen,
but give us the
determination to
make the right
things happen.
Peter Marshall
+61 2 9450 1040
www.gordianbusiness.com.au
