Think of a Key Account Plan as a roadmap that will help you navigate your relationship with one of your most important clients. Ask yourself the following questions:
- Is this a client that generates a significant portion of my revenue? In other words, if I don’t have this client my business is in jeopardy?
- Is my relationship with this client ongoing, with multiple transactions over time?
- Do I need to periodically review and shift priorities and resource allocation to manage this client?
- Do I have the opportunity to sell more than one product or service to this client?
- Are there multiple stakeholders that participate in defining what, who, when, how, and where to buy?
- Are the sales cycles long and do they tend to be complex?
If you answered “yes” four or more times, a Key Account Plan might be very helpful. It will give you clarity about this client and your relationship with them. You will be able to focus on what matters most. The ultimate goal is to build and maintain a strong relationship, to build loyalty between both companies, and to foster an environment of sustainable growth.
What is in a Key Account Plan?
Not all plans are the same and not all plans need all components. The larger and more complex your accounts are, the more angles of analysis you may want to add to your plan. Keep in mind that you won’t do one for all accounts, but will for the one(s) that matter most.
Here are the building blocks of a Key Account Plan:
- Quick summary of the client’s business, reflecting their performance, achievements, goals, and strategic vision
- Stakeholder relationship matrix, indicating their key players that recommend, define, approve, influence, select, and own the initiatives where we can get involved. We also keep track of whether they are supporters, blockers, or indifferent to our company, and who in our organization is the key liaison to each stakeholder
- Long-range (3-5 years) of relationship strategy: what we want it to be and milestones to monitor our progress towards this visionary objective
- Snapshot of revenue trend with historical sales charts, projections, product selections, pipeline, and key initiative participation
- Current opportunities in the sales funnel where we are competing, identifying the value, timing, and requirements to win
- Competitive environment naming what other vendors are selling to this client, indicating their strengths and weaknesses
Isn’t this just “busy work” that takes time away from selling?
It is true that preparing the first version of your Key Account Plan will take some time, energy, and collaboration from your team, but remember that you are building the foundation for the relationship and attention that this account deserves. As a leader, you are well aware that putting a plan together is a crucial step to reaching your vision and gaining commitment from your team. Once the plan is in place, it merits review once or twice a year to update critical information. If you guide your team to carefully collect valuable information and build it into the plan, clear goals and priorities will naturally emerge from it.
Give it a try and if you need help to start one or improve the one you have, please reach out to me for quick starting tips.
