How to Win in Key Account Management: Experiences of a scarred KAM

By Jan Lind

There is a growing requirement for truly successful and effective Key Account Management (KAM) in the ever increasingly competitive global market. Increased digitalization requires improved personal communication to make a difference. Key account business is made between people. Stakes are high. The potential reward with a key account is tremendous while cost of people is considerable and the required time to get to success is getting shorter and shorter.

This is not a theoretical book. It is all about how to do it in real life. Regardless if you are a beginner or if you are already experienced in the business, there are ideas and inspiration to pick up.

The reader gets a lot of practical tips:
How to analyze, plan and influence.
How to work in teams, local and global.
How and when to look at partnership.
How to sell professionally and effectively.
How to set pricing, negotiate and follow up.
How to manage problems.
How to use the right attitude.
How to increase the probability to win in every step.

Everything explained in a down to earth language, with a lot of examples and a twinkle in the eye.

Whether you take the book from scratch and do everything in it, or use your current work methods and add or change what can be improved, it will help you in increasing the probability to win.

And that is what it is all about.

• Language: English
• Publisher: Books on Demand
• Release date: Jan 24, 2017
• ISBN: 9789175694597

Jan Lind

Jan Lind is holding a Master of Science degree from the Royal Institute of Technology in Sweden. Initially targeting a career as development engineer he soon realized that his true passion was in sales to key accounts, a passion that lead him to thousands of customer meetings. Customer meetings that in turn lead to negotiation and successful closing of many multi-million dollar contracts all over the world. Having more than 30 years of experience in marketing, sales, key account and global account management at multinational corporations as well as in smaller private companies the author has a lot to say about how to be successful in Key Account Management. Jan Lind has developed methods based on real life experience and is now sharing his knowledge through consultancy work and publications in sales and key account management.

Book preview

Contents

ACKNOWLEDGEMENTS

INTRODUCTION

THE STRUCTURE OF THIS BOOK

ANALYZE

INFORMATION ABOUT THE CUSTOMER FROM ALL DEPARTMENTS

INFORMATION ABOUT YOUR OWN BUSINESS FROM ALL DEPARTMENTS

MATCHING STRENGTHS AND WEAKNESSES

STRATEGIC IMPORTANCE OF YOUR PRODUCT IN YOUR CUSTOMERS STRATEGY

NEEDS ANALYSIS. WHAT ARE THE REAL NEEDS?

WHERE AND HOW TO FIND INFORMATION

FIND THE FACTS

ANALYZE ORGANIZATION

HIDDEN DECISION MAKERS

COMPETITION ANALYSIS

WORK WITH THE CUSTOMERS CUSTOMER AS WELL

NEEDS / OFFER — MATCHING

KNOWLEDGE IS POWER

WIN BY ANALYSIS - A SUMMARY OF THE CHAPTER

PLAN

PROJECT LIST WITH WHAT, WHEN AND WHO

KEY ACCOUNT PLAN

CONTENT IN A KEY ACCOUNT PLAN

FORECASTING

WIN BY PLANNING - A SUMMARY OF THE CHAPTER

INFLUENCE

THE FOCAL POINT

THE MEDIATOR ROLE

INFORMATION BETWEEN CUSTOMER DEPARTMENTS

RELATIONSHIPS AT ALL LEVELS

TOP MANAGEMENT MEETINGS?

TRUSTED ADVISOR

BUILD RELATIONSHIPS

BE HONEST

DON’ T SPEAK NEGATIVELY ABOUT THE COMPETITION

WHAT IF YOU CAN’T HELP THE CUSTOMER WITH YOUR OWN SOLUTIONS?

WIN BY INFLUENCE - A SUMMARY OF THE CHAPTER

KEY ACCOUNT SELLING IS PROJECT MANAGEMENT

PROJECT LIST WITH WHAT, WHEN AND WHO

CUSTOMER RELATIONSHIP MANAGEMENT, CRM

GIVE IT ALL AT THE FIRST PROJECT, AND CONTINUE THAT WAY

WIN BY MANAGING PROJECTS - A SUMMARY OF THE CHAPTER

TEAM WORK

DIRECT REPORTS

MOTIVATION

VIRTUAL SALES TEAM

COORDINATE A SALES TEAM

COMPENSATION

HOW TO GET OTHER PEOPLE ON YOUR TEAM

WIN BY TEAM WORK - A SUMMARY OF THE CHAPTER

LOCAL AND GLOBAL

CULTURAL CONSIDERATIONS

DIFFICULT TO GET IN AT THE HEADQUARTERS?

CONTACTS MOVE BETWEEN COUNTRIES

A LONG TRIP IS OFTEN WORTH IT

TRAVELING TOGETHER WITH THE CUSTOMER IS GOLD

WIN BY BALANCING LOCAL AND GLOBAL - A SUMMARY OF THE CHAPTER

PARTNERSHIP

SHARING FORECASTS AND ACTUAL PRODUCTION VOLUMES

SHARING MARKET AND SALES DATA

SHARING RESEARCH AND DEVELOPMENT ACTIVITIES AND PLANS

REGULAR HIGH LEVEL MEETINGS TO ENSURE THE PARTNERSHIP IS ON TRACK

DEFINED HIGH LEVEL CONTACTS IN EACH KEY AREA AT BOTH COMPANIES

A HIGH LEVEL SPONSOR AT BOTH COMPANIES

TASK FORCE CAPACITY TO SOLVE PROBLEMS FAST

A LONG TERM RELATIONSHIP

COMPLEMENTING CAPABILITIES

A LIST OF COOPERATION PROJECTS

SHARING PROFITS AND LOSSES

AGREEMENTS

WIN BY PARTNERSHIP - A SUMMARY OF THE CHAPTER

SELL

SELLING IS THE ART TO IMPROVE THE PROBABILITY TO WIN THE DEAL

HOW TO GET MEETINGS AND HOW TO GET IN TOUCH

GET OUT IN THE FIELD!

THE STRUCTURE OF THE CUSTOMER MEETING

THE SMALL ON-THE-SIDE PROJECT CAN BE A GREAT START

A NEW CONTACT CALLING IN IS A VERY GOOD SIGN

PERSON TO PERSON SELLING, ALL BUSINESS IS LOCAL IN A GLOBAL MARKET

GOOD LUCK!

LISTEN!

SMILE BEFORE YOU MAKE THE CALL, BUT DO NOT SMILE ALL THE TIME

THE CUSTOMER IS NOT ALWAYS RIGHT

PRESENT YOUR OPTIMAL OFFER

THE QUOTE

ASK FOR THE ORDER

WIN BY SELLING IN THE RIGHT WAY - A SUMMARY OF THE CHAPTER

PRICE IT

UNIT PRICE IS NOT EVERYTHING

DIFFERENTIATION

WATCH OUT FOR LOW PRICING

PAYMENT TERMS

WIN BY PRICING IT RIGHT - A SUMMARY OF THE CHAPTER

NEGOTIATE

NEEDS / OFFER NEGOTIATION - THE MEDIATOR ROLE

WHAT TO DO IN A NEGOTIATION - TALK ABOUT PRICE AND VALUE

HAVE MANY PARAMETERS IN THE NEGOTIATION IN ADDITION TO UNIT PRICE

ASK THE CUSTOMER FOR HELP TO NEGOTIATE INTERNALLY

DON’T GIVE WITHOUT TAKING

WHAT TO REQUEST IN RETURN

TRIAL CLOSURE

TAKE SMALLER STEPS WITH EVERY ROUND

USING SCENARIOS

ASK FOR A BREAK AND CALL SOMEONE

WHAT IS A WIN?

THE CURRENCY AND RAW MATERIAL PRICING GAME

WIN-WIN IN THE NEGOTIATION - A SUMMARY OF THE CHAPTER

FOLLOW UP

PROJECT FOLLOW UP

PERSONAL FOLLOW UP AND TIME MANAGEMENT

QUARTERLY REVIEW WITH THE CUSTOMER

YEARLY REVIEW WITH THE CUSTOMER

INTERNAL REVIEW

WIN BY FOLLOW UP - A SUMMARY OF THE CHAPTER

PROBLEM MANAGEMENT

A COMPLAINT IS A GIFT

ASK QUESTIONS

NEVER REPEAT THE SAME MISTAKE

TAKE THE INITIATIVE

WIN BY MANAGING PROBLEMS - A SUMMARY OF THE CHAPTER

ATTITUDE

BE POSITIVE

BE FLEXIBLE

BE ADAPTABLE

BE A LISTENER

BE ACTIVE

BE PROACTIVE

BE SOCIAL

BE A NETWORKER

BE ETHICAL

BE TRUSTWORTHY

BE WILLING TO TAKE THAT EXTRA STEP

BE PERSISTENT

WIN

Acknowledgements

First of all I would like to thank my lovely wife Agneta who has been very patient with me over the years and who is a great support to me in all aspects of life. Thank you to my wonderful children Beatrice and Martin, in addition to being the best of the best you have also contributed to this book by proof reading and with design support.

I would also like to thank Jermaine and Vijay for great advice and suggestions during the development of the book.

Last but not least, thank you to all customers and colleagues that I have met during my career. You have helped me sharpen my pencil many times and without you this book would never have happened.

Introduction

There is a growing requirement for truly successful and effective key account management in the ever increasingly competitive global market. Increased digitalization requires improved personal communication to make a difference. Key account business is made between people. Stakes are high. The potential reward with a key account is tremendous while cost of people is considerable and the required time to get to success is getting shorter and shorter.

Despite, and at the same time thanks to the challenges, I enjoy working with key account management. Up to now I have spent more than 30 years doing it in various marketing, sales and management roles, in large multinational public corporations as well as smaller private companies. Today, I am doing consultancy work in sales and key account management.

I see others doing the same journey as I have done, with the ups and downs, with days of sweet success and days of sweat inducing mistakes. Suddenly I woke up one morning thinking that I should write a book about my experiences as Key Account Manager. Why not share the methods and ideas I have developed hands on during the years? I would have loved to have such a guide in my hands in the early days as well as for the continuous improvement and reminders that are always needed. What book would be good to have, to turn to, to get new inspiration and ideas about how to continue? A table of contents started to develop in my mind.

This is not a theoretical book. It is all about how to do it in real life. Regardless if you are a beginner or if you are already experienced in the business, there are ideas and inspiration to pick up. It can be read piece-by-piece jumping between chapters, but a first time read from start to end is highly recommended.

Whether you take the book from scratch and do everything in it, or use your current work methods and add or change what can be improved, I am sure it will help you in increasing the probability to win.

And that’s what it is all about.

Happy hunting,

Jan Lind

The structure of this book

If you are like me, you have probably already glanced through the table of contents in the beginning of the book. My intention is that the table of contents should give you a good overview of what the book includes, the flow of topics and how they relate to each other. It could actually be read as a very short summary of the entire book. At least it will serve as a good list of reminders after reading the book, in addition to the obvious where to find what function.

The content is structured in a logic flow, with for example analysis preceding planning, and selling placed before winning. In real life, all topics are relevant at the same time, just with more or less emphasis.

All chapters have subheadings related to the chapter heading. Each chapter includes a number of examples to illustrate the more general descriptions preceding them. The examples could describe real situations that have happened in your business. As a minimum the analogies that can be drawn from the examples should be useful in almost every business. Dialogues between key account manager and customer are used in many cases to show very clearly how a certain strategy can be implemented in practice.

Each chapter is finished with a summary, and the book is finished with a summary of the complete contents. The idea is to make it easier to remember the contents and for quick reminders of the key messages.

It helps a lot to be positive, even in difficult times. It influences people you meet to be positive and a positive climate will enable more business. Not to mention how much better you will feel to work in a positive environment.

Look at two people, one optimist and one pessimist. They have the same jobs. The optimist will have a higher probability to succeed just because of the positivity. Even if the optimist fails, wouldn’t you agree that the optimist had had a better time?

- Attitude reminder #1: Be positive

Analyze

Are you new to your customer or do you not know enough detail to know where you are going? Go out and meet the people! Do not spend weeks analyzing what to do before you meet them.

This might be seen as a strange start to a chapter about analyzing. However, I just want to make sure that you do not fall in the trap of sitting too comfortably in the office making theories about what to do to win the business you are targeting to get. Having said that, obviously a good analysis is a key to manage your account in the best way. This will greatly help you to get where you and your customer want to get to. Just be sure that you mix theory and practice in your analysis work. Hopefully you have a few products running with the customer to get you started digging deeper to build a better understanding. Meet the people who already have a relationship with your company, introduce yourself and listen to their concerns, pick up the ball and follow up. If you have no business and have no developed relationships yet, book meetings where you think you can get the best information on how to get started. Get inspiration from the list of departments below.

Now, do not get stuck in only handling day-to-day issues. Make sure to set aside time to analyze your customer and your own company to find a longer-term direction. If you are only handling the day-to-day issues you are not managing the account effectively.

Information about the customer from all departments

Your customer is probably a large corporation with a complex organization. Or a medium sized company with an ever-changing organization. Or a smaller company with no organization. Or another mix of all above. Just be sure it will take time and effort to understand what you should know to do an effective job. And today's view will not be the same as tomorrow's as everything is constantly changing. You might think this sounds too much, and that it is better to move on with handling the day-to-day issues only. But let me assure you that a good understanding of your customer is key to be successful and to feel confident and proud of what you are doing.

Do you have a good contact with the logistics department manager of your customer? Good, that is an excellent start. But if it is the only contact, you are heading into problems. Suddenly he or she may tell you that they do not need more of the product you are delivering. As it could take at least a year to get a new product running with your customer you might find yourself in a rather difficult situation.

Instead, try to list all departments of your customer. They might be for example:

Shipping

Logistics and Planning

Purchasing

Product Management

Quality

Marketing

Sales

Design and Development

Research

Administration

Project Management

Executive Management

If you are not sure that you are aware of all departments that exist do not worry, list the ones you know and use upcoming meetings and other resources to find all departments.

Now, list names of people you know under each department. Do you have departments with no names listed under them? You probably have. At the upcoming meetings, take the opportunity to ask about contacts in your ’blank’ departments. Even if you are not sure at this stage, list what you think is important to each department. As soon as you get more information, update your list of key concerns of each department.

Example: Is it really so important to know people and the key concerns of all departments?

Yes, it is. Let us take an example. You are a supplier of nuts and bolts to the big company XCSOHSW. (The big company Extremely Complicated Systems Of Hardware and Software decided to use this catchy easy-to-use acronym.) Your company is quite successful in its market supplying high quality nuts and bolts, however, although you never show it, you feel quite small in size in relation to XCSOHSW. You have a good contact, John Flow, at the supply and incoming goods department of your customer. You are happy to see that volumes of the nuts and bolts supplied are growing and that John is expressing how pleased he is with your flexibility in deliveries. In fact, you have helped John several times with expedient deliveries when they faced supply shortages.

In short, you feel safe that you will continue as a trusted supplier to XCSOHSW. Just recently the demand suddenly increased by a factor of three. You managed to persuade your factory to work overtime and with several extraordinary efforts it looks like you can deliver the new demand just in time. John is extremely grateful that you can help him with this sudden demand increase.

Delivery of the bigger batch has just started and it looks like you will be the company hero when John suddenly calls you. He is embarrassed and apologize, but an idiot at planning has made a mistake, he wants to stop your deliveries and return the first lot he has already received. Inside your company it is a high risk that you will now be the idiot at sales, and how will you be able to persuade the factory to ramp up next time there is a high volume short-term opportunity? You foresee a difficult time with negotiations of returns and fees, as well as internal explanations. Now if you had contacts in other departments ahead of this crisis you might have saved yourself, your company and the customer a lot of headache. Let us examine how.

Product Management might have shared with you their plans of switching to a new product requiring fewer nuts and bolts and of a new material. They probably knew about this more than a year ago.

The people at the Quality department have seen issues with installation of the now old product as it has too many nuts and bolts.

Marketing has been enthusiastic about the new product for some time pushing information to its sales force.

Sales have been promoting the new product to their customers. Some of their customers want to stay with the old product, but a fair amount have realized the benefits of the new product and have, rather surprisingly, quickly moved over to the new product.

Design and Development have been working on