Nov 2, 2015 | Customers, Sales
Strategic Key Account Planning
SKAP, or Strategic Key Account Planning will enable general management, sales management and account executives to develop a comprehensive and measurable plan that will facilitate the development of relationships that identify, develop, win and keep business.
Clearly however, the first step is to identify just what characteristics are present in a “strategically important’ customer. Rarely will it be the top 10 customers, you need to look forward and determine who might be your top customers in 3-5 years, and work on them.
There is a fundamental assumption made that has held true of the 20 years I have been working with businesses developing ‘SKAP’, that there are only three ways you can effectively sell a product in B2B situations. You can work with your customer to:
- Increase their sales
- Reduce their costs
- Increase their productivity.
In one way or another, every consideration from IT implementations to OH&S come under one or more of these three headlines.
To sell in the competitive and digitised markets we now compete in, you need to be delivering on at least two of these fronts to be able to win a competitive situation, and three is geometrically better than just two.
The size and nature of the business does not matter much, any B2B oriented business can benefit by an intelligent SKAP process.
There are a number of elements that build on each other, all contributing to the picture of the manner in which you can approach the delivery of your value proposition to a potential and ongoing customer.
Of vital importance is to be able to see the customer’s problems and opportunities through their eyes. To do that you need detailed intelligence of the customers and their competitive environment
There are a number of areas of information; usually it takes an upfront effort followed by an incremental building of intelligence as the relationship develops. The more input the customer has to the process, the better. Developing a SKAP in collaboration with a customer is the ideal situation.
The information needs fall into a number of areas.
Corporate information.
- Ownership
- Key personnel
- Business processes such as purchasing, capital allocation and budgeting
- Organisation structure
- Informal communication and power structures
- Operating mechanisms, such as sites, internal communication systems.
Competitive information
- Primary competitors and relative strengths
- Key markets & profit pools
- Collaborators
- Relative strength of their value proposition
- Trends and regulations impacting the business
- Business model
Operational information
- Mechanics of their business model
- Personnel Capabilities in key areas
- Operational capabilities & processes
- Financial management
- Product development capabilities and processes
Market operations
- Sales and marketing processes
- Key customers
- Share of wallet
- key competitors
Customer SWOT
A SWOT analysis is usually very useful way of identifying and prioritising opportunities and threats faced by the potential customer. Looking at their market from their perspective is a vital ingredient in a successful sales effort.
Account plan
With all the above information in place, you can develop an account plan that details the activities
- Objectives
- Issues
- Actions to be taken, by whom, by when
- Expected outcomes of each action and follow up sequences
None of this is easy, or to be undertaken lightly, as there is an opportunity cost in the allocation of scarce resources. When you need a bit of help, call me.
Oct 30, 2015 | Communication, Social Media
“Self indulgent nonsense that passes as digital marketing strategy”.
That is what it often is, perhaps usually, but it can also be the road to success when leveraged by a truly expert marketer.
But everybody is a marketing expert, it is easy, just common sense, surely?
Why is it then that I see so much crap, so much waste of time and money, often lots of it.
Big businesses are the worst, the marketing people spend money like it is not their own.
Hang on, it isn’t.
By contrast, small business is intimidated by the jargon, the smoke and mirrors that has been so prevalent over the last 100 years, joined recently by the mystery of digital. They shy away and often do not take advantage if the greatest single marketing opportunity that has ever opened up for them .
The ability to not just send a personalised message to an individual, but to see what they do with that message, respond appropriately, and to enter into a ‘conversation’ with them.
I know there are lots of self styled gurus out there blathering on about people becoming engaged with brands, wanting to carry on a conversation with their favourite brand, and promising to deliver such an outcome, when common sense says it is crap.
Look at your own behaviour.
Do you crave the attention of a ‘brand’ do you actively seek a ‘brand experience’ crave digital interaction with your brand?
I thought not.
Most people are not thinking about interacting with their favourite brand of yogurt except when they are in the supermarket, or their head in in the ‘fridge looking for some brekkie, despite the protestations of digital marketing bag men whose job it is to flog a digital inventory of some sort.
Be careful, and ensure that you build the foundations of great marketing, get the fundamentals in place, then you can go ahead and win.
Oct 23, 2015 | Communication, Marketing, Small business, Social Media
Courtesy: “First dog on the moon”
I am getting pretty annoyed with the enthusiastic panting of the toothy self appointed social media guru brigade extolling the ‘awesomeness’ (my current second most hated word) of social media.
They give the serious advisors amongst us a bad name.
It happened again during the week. At a casual SME meetup, there was one of these types there flogging the line that all you had to do was give him some money, and you would make it back 10X (actual claim) because he was able to focus his specialist and exclusive Social Media expertise on your objective and ‘Abra Cadabra’ money would appear.
The loaves & fish story have nothing on this lot.
Social media is just a fragment of the challenge of Social Marketing enabled by the technology that not just encourages, but demands that your ‘targets’ (will have to think of another word) have the opportunity and means to communicate with the marketer.
As I have heard it said, ‘it is not communication until the intended message is received, understood and has elicited a response’.
Seems to me there are a few questions you should ask yourself about your message:
- To what extent does it assist the prospect move along the journey to a transaction?. We do not engage in social marketing for our health, it is for a commercial outcome. Therefore measure it against the progress towards that outcome, recognising there are probably many other things in your message mix, from deliberate marketing communication aimed at the prospect, to random stuff like how clean was the company delivery truck was when it passed your prospect at the lights last week.
- How does the communication add value to the prospect?. If you cannot add value in some way, why should the message assist the journey to a transaction?
- What do they do next as a result of seeing your message?. If they do nothing, it is just another of the 95 gazillion messages they might see today, if they do something as a result of seeing it, whole new ball-game? It is great to have someone take action as a result of your message, greater if that action not just moves them down the transaction path, but if they also share it with their networks. In effect they are not only acknowledging the value of your message, they are endorsing it to their networks. This is the gold at the end of the social marketing rainbow.
Social marketing is pretty easy to write and talk about in a superficial way, but very hard to put into meaningful practice. It takes careful and creative analysis of your prospects and your own value proposition, as well as the construction, content and nature of the messages sent. This is not an exercise conducted with a fairy wand and pixie dust, it takes serious marketing thinking and experience.
If it sounds almost too good to be true, grab your wallet and get out, because it almost certainly is.
Oct 21, 2015 | Branding, Governance, Marketing, Social Media
Fundamental things apply
Great line for a song?
We all know the words, written by Herman Hupfeld from the song ‘As time goes by’, made famous in the movie Casablanca.
It also applies to marketing, particularly the explosion of techniques and tricks that have emerged with digital technology.
Despite all the rumors and offers of instant success, there is no algorithm for great marketing, no sure fire way of short-cutting the risks and uncertainty.
Great marketing takes time, effort, resources, curiosity and a willingness to be different, to see things others have not seen, to create the uncreatable.
You do not do that in front of a screen, the best you can do there is look at the results of stuff you have tried, get a superficial look at what others have tried, and manage digital development and deployment.
Instead of relying on digital bits to do the work, you have to get out and talk to customers, potential customers and others who may have an influence on the way a product is produced, delivered and valued by customers, whether they be a consumer of a simple product or a major corporation making a significant investment.
The fundamental things apply, the same things that have always applied, they have not been replaced by digital tricks.
We can now deliver a message to a tightly defined audience, as small as one, but if the message is poor, wrongly targeted, the product fails to deliver value, you may as well whistle in a hurricane for all the good it will do you.
Make sure the basics are covered, ensure the fundamental things that make a marketing program work are in place. There is no substitute.
Oct 19, 2015 | Customers, Marketing, Sales, Small business
Strategic Key Account Planning
Almost every organisation I have dealt with uses some variation of the accepted sales funnel model.
Start by gathering as many leads as possible, then progressively whittle them down through the funnel until you have a customer. The practice is always way more chaotic than the nicely drawn funnel, as leads enter and exit the funnel at various times for various reasons. Chaotic is usually an appropriate expression.
When you think about it, there is a huge amount of waste in the process.
You start with many, and expend considerable resources to turn leads, of which a large majority are unlikely ever to be customers, into prospects, into hot prospects, (or whatever creative name you call them) then create a transaction, then hopefully to build a relationship.
In most B2B situations, this simply does not make sense.
Would it not be far better to spend a fraction of the resources identifying your ideal customer based on your value proposition, then identifying the decision makers and their procurement processes in those ideal customers, then setting out to engage them with personalised marketing?
This is in effect turning the funnel upside down, but recognising that prospect behaviour is unpredictable if not chaotic, it may be that the pyramid, in what ever orientation is the wrong metaphor.
Why not use a cycle of some sort, with the central objective of creating a relationship with the key customers and prospects in your industry.
Digital technology is making this easier by the day to execute, but the foundations of good marketing have not changed. Digital technology cannot change those foundations, the things you simply have to get right to earn the confidence of a prospect to give you their money.
