How can you add value for your customers?

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By Peter Browne

Post-Election 2013 – are you match-fit for the opportunities ahead?

 "The key here is to understand that a value proposition is not merely a product or service; it includes the entire customer experience."

Fred Reichheld

Heading into the election, the economy was by far the most important issue for voters.

In the New Year we described 2013 as a year for “Focus, Persistence and Discipline”. It has certainly lived up to those expectations. Even before the election was announced, Australian business leaders had expected weaker business conditions in 2013. Pre-election uncertainty feed a reluctance to commit to longer-term business plans and a lack of investment worsened an already stagnant environment.

The vote over the weekend to install the Liberal Party signals the end of an intense period of politicking that has been an unwelcome distraction. Much of the uncertainty has plagued decision making across industries. The election outcome should help remove much of this uncertainty and allow companies to focus on the year ahead with greater confidence.

The new government needs to urgently get on with business to lead Australia through a raft of challenges: structural change across industries, a weak domestic outlook, declining global competitiveness and a patchy global economy.

For business leaders, this lull has forced companies to re-focus: to review their business models, their markets, customers and costs.  Now is the time to re-position for growth. We have adjusted to do less with less, now we must prepare to do more with less until sustained growth is certain, and ask two questions:

“How can we sell more of our current products and services to our current customers, with the same resources?”

“How can I grow my customer base without adding resources?”

One proven way to achieve these outcomes is to offer more value. Offering more value is seen in the following short video from John Fahey, CEO of National Geographic. John discusses the changing face of value and the need to understand customers more deeply than ever before.

 http://bit.ly/15oNHRP

We would love to hear your views so please add your comments below and subscribe to our blog at the top right of the page.

If you are struggling to identify ways to offer greater value to current and prospective customers please contact us to discuss how we can help on +61 (0)2 9450 1040 or email peter@gordianbusiness.com.au

Are your Account Plans strategic? – take our 5 question test

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By Peter Browne

Are your account plans as strategic as you think?

“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”

 Sun Tzu

Senior executives must juggle many balls. They must strike the right balance between focusing on long-term and short-term objectives. Fail on the short-term and you are out of a job; fail on the long-term and you might not have a business. Because key accounts drive both short and long-term revenue and profit, one litmus test of how well senior executives are directing the business to achieve the right balance is to see what is included in strategic account plans.

Including the word “strategic” implies a longer timeframe and matters of significance. To test if you are working at the strategic level with your key accounts take this quick 5 question test:

1. Does your account plan include actions to increase your understanding of your account’s strategic priorities?
2. Does your account plan include initiatives that go beyond this financial year?
3. Does your account plan include actions that will broaden and deepen relationships with your account?
4. Does your account plan include initiatives that are beyond your products and services?
5. Does your account plan identify your account’s strategic problems, and initiatives to help solve them?

If you are serious about creating strategic relationships with your key accounts; increasing barriers to entry against competitors; and barriers to exit for your key accounts, you should score 5 out of 5 for these questions. If you did not score 5 out of 5, then you need to identify the problem. Are you too focused on the short-term? Does the account team still require development to think and act strategically?

In our experience most “strategic” account plans are operational and short-term. Businesses too often focus on winning sales at the expense of building truly strategic relationships. Account teams find it hard to manage the internal pressure for short-term results.

So make sure the accounts plans for strategic accounts include short and long-term activities; and activities that create value for both you and your strategic account.

We would love to hear your views so please add your comments below and subscribe to our blog at the top right of the page.

If you are struggling to make the shift from traditional account management to strategic account management please contact us to discuss how we can help on +61 (02) 9450 1140 or email peter@gordianbusiness.com.au

Is your sales development investment targeting the right problem?

Google

By Peter Browne

Are you serious about creating an account team that can think and act strategically? Or are you doing the same things as your competitors each year, and making no meaningful progress?

Based on a recent survey by Executive Conversation it seems the latter is the case for most companies.

The June 2103 survey found “understanding customers’ business needs” was the most important issue for companies. It also found that training on financial acumen and selling to customer executives were also of high importance.

Yet when you look where companies are investing their development dollar, there is little reason to be confident much progress will be made in any of these areas.

Currently almost 90% of companies include training on products and services in their sales development programs. And despite the fact that respondents rated their team’s product and service knowledge as excellent or above average, they plan to continue to dedicate the highest percentage of their sales development investment to more product training.

This illogical situation does not surprise us.

In our work across many companies and industries time and time again we see the same problems. The account team are so focused on selling products and hitting their targets that they spend no time trying to understand the customer’s business needs; they have poor financial acumen so lack confidence when conversing with senior executives. So, it is blatantly obvious why account managers struggle to sell to customers executives.

Today’s fast paced and resource constrained business environment has changed the game for account managers. Senior executives expect key suppliers to understand their business and they expect you to do your own homework. So when you are given the chance to meet with or present to them, they expect you to understand their business, your business and engage in language they understand – financial language. If you fail on any of these points good luck getting in to meet with them again.

Companies that are serious about changing the way they work with their key customers, and build more strategic relationships must get off the “product training drug”. They must equip their account team with the skills and processes to understand their accounts more deeply, and understand and convey value in business language.

So if you want to stop banging your head against the wall, do something different this year with your team to change the way you work with your key accounts. Based on the evidence you will be one of the few.

For help in changing the way you work with your key accounts call us on +61 2 9450 1040. Please share any thoughts you have on this below and subscribe to our blog using the RSS feed at the top right of the page.

How to avoid price discounting: the 2 keys to success.

Google

By Peter Browne.

Is your company facing increasing pressure to compete on price? Are your competitors cutting prices to secure volume, and are you being forced to respond? Are revenues and profits in steady decline? Do you feel helpless to stem the flow?

The long-term implications of price discounting are catastrophic; it creates a discounting mindset, it hurts your brand and credibility and reduces your capacity to reinvest and stay competitive.

There is no silver bullet; however there are two proven strategies you can employ to better manage a competitive pricing environment.

1. Manage your accounts strategically

Managing accounts strategically enables you to create a relationship where your full value is understood and regularly demonstrated. Customers understand where increased cost comes from, and the value it delivers. They see value beyond your products and services, because they value the relationship they have with your company. Relationships between executives, operational and technical teams create a strong connection that rises above product and price. Customers understand the value you have created for them in the past, and trust that you will deliver more value in the future.

If you have not created a strategic relationship with your major accounts you are not in a position to negotiate. Your account will not understand the value you offer. If you have not helped them understand your value prior to the negotiation process they will fall back on price.

2. Have a strong negotiation plan

Before entering into a negotiation, you should know you are the account’s preferred choice. You should be able to articulate the additional value your company has created for them so far, and understand what is important to your customer. Both the explicit things they state also the “below the waterline” considerations that you have uncovered.  Your demonstrated value and deep understanding of their business puts you in a strong negotiating position and a long way ahead of your competitors.

If you aren’t managing your accounts strategically and demonstrating your value, you are not in a position to negotiate. And there is no point having a great negotiating plan, when you have no value to leverage. One out of two won’t do; you need both.

We welcome your comments; or for help building your value with your clients, contact us on +61 2 9450 1040 or at mail@gordianbusiness.com.au

How to turn Strategic Accounts into a growth engine for your business

Google

By Peter Browne

How can you turn Strategic Account Managment into a growth engine for your business? Research has revealed that revenue from Strategic Accounts is growing at a rate nearly twice that of average accounts.

To find out how, we present a video interview with Bernard Quancard, President and CEO of the Strategic Account Managment Association (SAMA).  The organisation that 50 years ago created a new profession: the Strategic Account Manager.

In this new video you will get answers to questions such as:

• Customers can't all be strategic, so which ones should you consider?
• What are the key elements for operating an effective SAM program?
• What metrics should be used for managing a successful SAM program?

For help in developing and growing your SAM program contact us on +61 2 9450 1040 or at www.gordianbusiness.com.au.