Impact of Presidential Elections on Key Account Management Strategy
Who do you think would be the next President of the United States?
Any change that happens in the US economy substantially affects the world economy. In the past, the US economy and markets have responded well to the elections when the results have been predictable. However, this time things have been very unpredictable.
The Times has called it “the most surreal Presidential campaign in modern times.” The very fact that Mr. Obama is not running again for President is a very crucial factor. If you are a senior executive running the P&L of an Enterprise IT (Information Technology) outsourcing company, I can imagine your nervousness.
Over the years, while successfully helping numerous enterprise companies enhance their sales effectiveness through DemandFarm, we have realized that Key Account Management is highly useful for Enterprise IT outsourcing companies.
This is because great relationships between the enterprise consumer and IT service provider are what get them more and repeatable business. These Key Accounts (or set of enterprise consumers) for these IT services companies correspond to key sectors such as Automotive, Healthcare, Pharmaceuticals, Infrastructure, Technology, etc. Each of these sectors might experience a boom or slack due to the government’s tax policies, economic reforms, etc. Let us take a few examples to explain this.
The Democrats and Hillary Clinton have been quite keen on health care reforms. If Ms. Clinton comes to power, analysts anticipate the further development of ‘Obamacare’. This can be a boon for life sciences companies and healthcare organizations such as managed care facilities, hospitals, insurance providers, and medical technology companies. If one or more of your Key Accounts happens to fall into these categories, you might want Ms. Clinton to win.
Now few sectors might not do as well under Democratic rule. Take pharmaceuticals for example. The Clintons have fought to lower pharmaceutical prices for a long time. During his time as President, Bill Clinton took a pledge to stop drug companies from price gouging and his administration took measures to stop that. Hillary Clinton’s campaign announced in September that they plan to “hold the pharmaceutical industry accountable and rein in drug costs.”
If we look at the other side of the picture now, if Republicans come to power oil and natural companies may benefit. Mr. Trump is quite serious about oil’s significance to the American economy and wants the country to be energy independent. Trump administration could increase new pipeline construction and drilling, which might result in increased supply and low oil costs. This could also result in more business for oil equipment manufacturers. There is a possibility that Trump may lift the current ban on U.S. oil exports. While things may seem good for oil and natural gas companies, clean energy companies could face setbacks because of the obvious reasons.
If you are a senior executive running the P&L of an Enterprise IT outsourcing company, thoughts about which other sectors not mentioned here might perform well or suffer would be crossing your mind. What will happen to my Key Account that falls into Pharmaceuticals or Renewable energy sectors? Should I be asking my CEO to lower the targets for my team for this FY in the next meeting? And finally, who is leading the election race right now?
To be honest, five days before the final election result, not even the best analysts can answer these questions with 100% confidence. Also, even after the results are announced you will have to wait for few months to see what policies the new president and government are following. However, one thing is clear – your Key Accounts need some pretty watertight planning and managing in these uncertain times.
Key Account Management Technology or KAM Tech can come to your rescue. KAM Tech is a Key Account Management software or a set of tools that helps the key account manager manage and grow Key Accounts. If you have complex B2B offerings, to get consistent chunk revenues from your Key Accounts you need to go much deeper, do a proper analysis, make an actionable plan, and govern those accounts strategically.
Just closing the first few deals is not enough, you need to farm and mine into those large accounts for deeper and wider engagements.
DemandFarm has been able to solve this problem for hundreds of enterprises. Just imagine a solution that integrates with your existing systems such as Salesforce and you get fantastic analytics without putting in any extra data. Armed with key account management tools such as White Space analysis, farming and mining effectiveness, financial analysis, communication patterns, etc. you can build a powerful and actionable account plan. In short, you can be prepared for any situation that might arise.
Still, thinking about whether KAM Tech can help you? The elections may be too close to call, but this one is a no-brainer. Experience it today, and sit back and enjoy the outcome of the elections, knowing you got at least one thing under control.
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About the Author
CEO & Co-Founder, DemandFarm
Milind is CEO & Co-Founder of DemandFarm. Having practiced and evolved the ‘account farming’ principle for over a decade he established DemandFarm and is passionate about delivering the best B2B key account management tool to serve the needs of key account managers. Milind also serves on the Board of LeadEnrich & is a Strategic Adviser.