11. Win-winGoal: win-win-win Integrated Interdependent Strategic intent of seller Cooperative Basic Exploratory Strategic intent of buyer Firm Partners End- Users
12. The Buyers’ View of Sellers (78%) Unreliable Devious Opinionated Arrogant Poor Listeners Big Talkers The enemy Untrustworthy Pushy Aggressive Manipulative Only 18% saw the salesperson in positive terms Source: Negotiation Resource International ‘Buyer Behaviors’ 2001 (2000 purchasers over 2 years)
13. What is important to customers? 22% 39% 21% 18% Source: The Chally Group 2006
14. What do customers want? Substantiated value Total Solutions, not products and services Outsource everything except their own core competencies Source: The Chally Group 2006
15. Some KAM skills from the customers point of view 59% 24% 21% 19% 10% 9% 6% Source: The Chally Group 2006
16. Creating closer relationships with supply and demand chain partners (1) DIRECTORS DIRECTORS From Marketing Marketing Operations Operations Information Systems Information Systems Sales Purchasing Supplier Customer Adopted from Professor Malcolm McDonald, Cranfield School of Management
29. Can be stable state or trial stageFrom basic key account management
30. Key-Account Co-ordination Supplier Development Supplier Customer Creating closer relationships with supply and demand chain partners (2) Directors selling company Directors buying company To Marketing Marketing Operations Operations Information Systems Information Systems Adopted from Professor Malcolm McDonald, Cranfield School of Management
45. Opportunity to grow businessTo interdependent key account management
46. And from traditional key account categorization A Top 15 (in volume/revenue generated) B Next 30 C Next 55
47. to a more relevant key account categorization …. Degree of collaboration KAM relationship stage Needs of parties to KAM relationship High: collaborative Realisation of fullest potential of both organisations Integrated Confidence in relationship, stable & highly evaluated by both sides Interdependent Reduction of risk, ability to forecast Cooperative Operational, efficient transactions Basic Low: transactional
48. … and ultimately to a customer portfolio view Supplier’s business strength with customer High Low High Strategic: invest Future stars: selectively invest Customer attractiveness Volume: manage for cash Bread & butter: maintain Low Key customer
49. Key account strategies Interdependent KAM Integrated KAM Exploratory KAM Investin tailoring product Basic KAM Invest inbuilding relationships Cooperative KAM Invest inimproving processes Invest in Jointinformationsystems andfocus teams High Customer Attractiveness Invest indevolvedrelationships Maintenance &Consistency Basic KAM Co-operative KAM Vigilanceandmotivation Low Integrated KAM Co-operative KAM Stage of KAM relationship Adapted from: “Key Account Management”, Cranfield University School of Management, 1996
50. Developing strategic plans for strategic customers: the process Understand the customer’s external environment Understand the customer’s internal capabilities & resources Work out the customer’s strategies and its critical success factors for us Understand our internal capabilities & resources Work out our objectives & strategies, plus key actions Agree a process to produce a strategic customer plan
51. The contents of a KAM strategic plan (T+3) Purpose statement Financial summary KA overview Client’s CSF analysis summary Applications portfolio summary Assumptions Objectives and strategies Budget