Know How Well They Know You
Revenue per account should be accompanied by other quantitative and qualitative objectives
Customers’ experience and depth of relationship with your company are critical factors in determining sales strategy and marketing plans. Greenfield, new, and well-established accounts require different types of education, information, sales processes, and support. Good sales reps adjust their in-account activity based on their customers’ past spending. Support this approach with proactive programs that uphold and complement the reps’ individual efforts.
Start by segmenting accounts into revenue categories meaningful to your business. The following relationship categories provide useful qualitative descriptions.
Strategic Accounts have standardized on your offerings as the means to meet a specific need across their operations. They consistently make large investments, and C-level sponsors consider you the go-to vendor. Ideally, these accounts see you as a partner and your account manager as a domain expert.
Core Accounts use your offerings across multiple organizations, geographies, or business processes. They spend regularly, but your share of wallet here is lower than at strategic accounts. Your rep has good relationships with functional or department heads and senior managements, but doesn’t always hear about opportunities while needs are being formulated. Some departments or executives are loyal to competitors.
Beachhead Accounts have made one or several small purchases but are yet to make a major investment. Your sales rep has some relationships at the mid-management level but little or no access to senior decision makers. You hear about most opportunities after the requirements are well defined.
Greenfield Accounts have not bought from you in the last three years. The contacts you have in your database may be out-of-date or not your target buyers.
Figure 4: Sample Account Relationship Categories and Objectives
Determine your objectives for each group to capture its untapped revenue. Figure 4 illustrates a sample set of expansion strategies, targeting a shift to greater account penetration. For strategic accounts that see you as a best-of-breed vendor, a broader relationship as a trusted advisor is a good next-step objective. Core accounts may be ready for enterprise-wide agreements and deeper relationships with senior executives.
Complement revenue goals with other quantitative and qualitative objectives. Include goals for relationships, referenceability, average deal size, or breadth of presence. If you’ve been doing small deals in your beachhead accounts, consider setting an objective for higher average sales. If you’re present in only one geography or functional area among your core accounts, identify one or two other areas in each account to penetrate within the next year.
Make such planning universal and repeatable. Guide account managers through periodic and mandatory goal setting and development of account-specific plans. Support their efforts with both marketing and postsale services and support initiatives. Finally, measure progress toward account plans along with attainment of sales quotas.