Key account
management is always “ground under repair” when the executive sponsorship, strategy,
patience, perseverance, skills and KPIs necessary for nurturing these assets are
missing from the program. Instead, Account Based Marketing [ABM], a sustainable
strategy for managing and developing customer assets, will elevate your
customer portfolio to a new level of ROI when you manage it in a way that is
similar to how you optimize other company assets.
A customer
asset management team including members from sales, marketing, finance, support,
engineering and R&D maintains a pulse on the health of the ABM
program. They align customer facing
resources and build peer level relationships with each account. They assign customers to multi-faceted account
managers with the technical, financial and professional competencies required
to develop and execute account plans. They
set goals for the number of Most Valuable Customers (MVCs) and Most Growable Customers
(MGCs) in the customer
asset portfolio over a rolling time horizon.
They wisely ration resources based on account ratings.
Account
Ratings Justify Resources and Standardize Terminology
The
ABM Program Treats Each Account Differently Based on Its Rating
- MVCs
have a high lifetime
value [LTV]. Along with a frequent,
repetitive pattern of profitable multi-line/service engagements they provide referrals
and collaborative assistance in designing new products and processes. A strong association with their brand enhances
your brand. Your company is
well-positioned within their organization both technically and politically.
They tell you what you need to do. There is no guesswork.
- MGCs
have high potential to
become MVPs. Your company is building a partnership
that complements its technical position.
- STCs
[second tier
customers] fit one or more of your targeted personas and meet minimum profitability
requirements. They always consider your
company when they have a need for your category of services, but they do not
present an opportunity to become MGCs. You
retain them through marketing and contact center programs and processes. Sales reps may become engaged with sales ready
leads [SRLs].
- Below
Zero Customers (BZs)
are price shoppers with a low credit rating and have no desire to build a
relationship with your company. They do
not justify the expense involved in serving them. The goal is to encourage them to become
someone else’s customers.
