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Chronicles of a Sales Leader: What's Your Greatest Asset?
November 19, 2008
You need an asset management plan for your customers
By Bill Golder
I've spent most of my career inside of larger companies. It's amazing how much is acquired or leased to support infrastructure. It is so significant, that many companies invest even more to make sure none of it walks out the door. Loss prevention specialists armed with sophisticated asset management systems work hard to keep the company’s costs at a minimum. No more office supply closets where workers just grab what they need. You need a ream of paper? I'll need your employee identification and department cost center number. Every asset accounted for. Find an instance of a missing asset and you will find loss prevention specialists huddled together like detectives from an episode of Law and Order. While none of this "stuff" ever increases in value or delivers sustainable returns to the top or bottom line, we certainly put a lot of energy in making sure it never gets lost.
First of all, if you are in loss prevention (which is highly unlikely if you are reading this), please don't take offense. In fact, I might suggest a lot can be learned from the rigor placed on tracking and managing basic assets. The sad reality is that most companies are placing more investment in keeping track of basic assets than arguably the most important assets of all—customers.
The other unpleasant truth is that most companies don't begin thinking about taking better inventory of their customer base until some dramatic event like either the loss of a major client or a significant downturn in the economy. Blind sided is the word we hear often when C-level executives share stories about the major client that walked away or surprised them with a dramatic decrease in volume.
The good news is that it is times like the one we are in when companies choose to invest wisely and establish greater process and rigor around managing key relationships. Here are what I consider to be core components of a solid asset management program for your key customers:
1. Define the assets.
Not all of your customers need or should be put into a rigorous asset management process. Take the time to choose those that are most strategic to supporting the health of your business. Best practice organizations are looking beyond just revenue contribution and including things like future growth potential, impact on operations, margin contribution, partnership orientation and contribution to strategic initiatives like new product development. No matter how you get there, just make sure you set a criteria for segmenting your most important accounts and a way to continually evaluate who comes in and who goes out.
2. Establish a protocol for tracking, managing and maintaining the assets.
Strategic or key accounts always involve multiple internal resources to support. It is critical that a standard process and common language is implemented to get everyone on the same page and understanding both the short and long term objectives for supporting the account.
3. Capture the data.
This isn't just about whether or not to have a sales force automation solution. While it is understood that adoption rates on SFA is alarmingly low, that shouldn't be the case related to your most important accounts. Have a solid data capture compliance plan for this segment that is unwavering.
4. Align the right people to manage and grow the assets.
Our annual research study reveals the best practices of top sales organizations and one key attribute is how they are utilizing assessment tools to better align talents to specific roles in the sales organization. No matter how you get there, know that strategic account management requires a unique set of skills that combine selling, business acumen, the ability to collaborate with key resources and C-level interaction skills.
5. Joint plan with your assets.
Traditional account management and planning has been one-sided. Most account plans are all about the selling actions regardless of what is happening on the buy side. Best practice selling organizations are conducting periodic joint reviews that involve the client side of the equation in strategic discussions that go beyond just satisfaction with service levels. We are seeing top organizations involve their strategic accounts in discussions related to new product initiatives and overall strategic planning. This forges relationships that go beyond vendor status.
Certainly tougher times call for a strong strategy to get closer to your top customers. However, a strong asset management plan for your most strategic clients is a sustainable best practice that you can leverage in good times and bad.
Bill Golder is a monthly online columnist for Sales & Marketing Management. As EVP of sales at Miller Heiman, Golder has a reputation for taking on tough assignments and successfully turning around difficult situations. He has extensive sales and operations experience, especially in leading business-to-business sales of professional services and multi-unit operations management. Available for keynote speaking opportunities, Bill can be reached at bgolder@millerheiman.com. In addition, Bill contributed to Miller Heiman's recently published Sales Management Guide, which provides career transition advice to new and seasoned sales managers. To request your free copy call 877-678-0397 or order online.
Sales & Marketing Management Magazine
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