Tag: Strategic Account Mapping

Strategic Account Map: Account Mapping Process for Strategic Account Management

Buying decisions in companies are getting increasingly complicated. Recently, Gartner has reported that “the typical buying group for a complex B2B solution involves 6 to 10 decision makers.” What involved a one-person decision some years ago, now has multiple decision-makers or stakeholders.  In addition, there are different types of such decision-makers. Add to this the number of key accounts you have to manage and keep track of, and suddenly you’re overwhelmed!  Patricia Fripp, author and presentation skills authority says, “Technology doesn’t run an enterprise; relationships do!” So, while you may have CRM systems in place to track all your data, the biggest drawback is just that – a CRM system only tracks data! How do you record usable information on the key decision makers, their preferred communication styles, the key account’s major pain points, and all other intel you gather over time? Enter – Strategic Account Mapping!  What is Strategic Account Mapping? In its simplest form, a strategic account map is a visual representation of key contacts, decision makers and relationship dynamics within a key account’s organization. Looking for an easy way to identify key accounts? Use this cheat sheet!  Why go through the trouble of this exercise? Because relationships matter. And with business relationships, you want to maintain a relationship with the organization as much as you want to maintain a relationship with a key person or a strategic decision maker.  In the words of American billionaire entrepreneur Mark Cuban – “Business happens over years and years. Value is measured in the total upside of a business relationship, not by how much you squeezed out in any one deal.” The fact is that people leave, but your relationship with the key account doesn’t have to end there. This means it’s important to have several points of contact within the organization and keep track of all the key information you need to keep your most important customers happy. Thereby increasing sales and revenue! Within a key account’s organization, you may need different points of contact for different activities. There could be one point of contact that’s essential for maintaining the relationship, another may be essential on account of their decision-making authority, and you could need others to confirm important details or pitch ideas to. All these are important for different reasons.  Just identifying whom to reach out to isn’t enough. To optimize time and increase efficiency, it’s best to know who the decision-makers are. In this way, you can start developing those all-important business relationships. And cultivate them in a way that you can at some point go beyond the people and be strongly linked with the organization. With all this as background, you can see why this cannot be a one-time project. Strategic account mapping is, in fact, just the beginning of the business relationship. It is the starting point of the map that gets bigger, with more details and more layers. It should be a continuous building process to which details keep being added.  How do you add details?  When a new point of contact is established. This could be because the original point of contact is separating from the organization or has been transferred or promoted. It could also be on account of the contact being on long leave or taking a hiatus.  When another department in your organization has collected data through surveys or interviews.  By browsing the key account’s social profiles, periodically checking their websites for new appointments, new launches etc. and scanning the news for announcements about them.  Before or during any major projects undertaken, renewal of service contracts or similar activities where new information or details may be discussed.  Strategic account planning is just good business practice. When it is consciously and actively made a focus, it helps you build better and stronger connections with your key accounts. Since details are constantly tracked and updated, a strategic account map can be the source of reference for every new interaction. It helps to avoid contacting the same person over and over again, making others feel side-lined. Knowing exactly whom to reach out to begin a new conversation makes your communication more targeted and relevant. You, therefore, appear current and better-informed, earning major credit for your organization!  Importance of Strategic Account Mapping for Key Account Management Even today, the 80:20 rule applied to business holds true. That is, 80% of your revenue comes from 20% of your clients. Combining this principle with the knowledge that client retention is less expensive than client acquisition, key account management becomes vitally important. And it all starts with strategic account mapping.  Strategic account mapping is the first step of Key Account Management. It should begin with the first interaction with the key account and continue to be built and reviewed with every deal. Strategic account maps are relevant and important to every department that has a connection with your key account. Your sales teams are, of course, the biggest beneficiaries, but strategic account mapping can be equally invaluable to marketers and customer service representatives among others. Top 5 Benefits of Strategic Account Mapping Some of the major benefits of Strategic Account Mapping for Key Account Management are: 1. Client retention Despite all the data on customer retention v/s customer acquisition, only 18% of companies focus on customer retention. This offers an excellent opportunity! Since the major objective of a strategic account plan is to map the important and influential players of key accounts, this information can then be used to communicate and deal with them effectively. In-depth and current information about pain points, priorities and influencers can make a big difference in your dealings with key accounts. With this information, your teams are able to offer services and solutions that are pertinent and appropriate and that match the key accounts’ requirements, thus showcasing your knowledge and interest in them. 2. Long-term relationships Your relationship with a key account may begin with one point of contact or a friendly face that has helped you get a foothold. But to manage