Key Account Selling * * Based on the book Major Account Sales Strategy, Neil Rackham, Harper Business, 1991.

Key Account Selling Key Account Selling **

* Based on the book Major Account Sales Strategy, Neil Rackham, Harper Business, 1991

Key Account SellingKey Account Selling PurposePurpose

– To focus on developing new business.To focus on developing new business.– To focus on selling To focus on selling important,important, largelarge new new

accounts.accounts. GoalsGoals

– To teach you that key account selling To teach you that key account selling techniques are different from old-fashioned techniques are different from old-fashioned transactional selling.transactional selling.

– To teach you these new selling techniques.To teach you these new selling techniques.

Key Account SellingKey Account Selling BenefitsBenefits

– You will develop new business from large You will develop new business from large accounts.accounts.

– You will learn a skill in great demand in today’s You will learn a skill in great demand in today’s business climate (no more loyalty).business climate (no more loyalty).

– You will keep your job and get promoted.You will keep your job and get promoted.– List jockeys are out.List jockeys are out.

Key Account Selling SeminarKey Account Selling Seminar Take notesTake notes Ask questionsAsk questions Give examples, participateGive examples, participate

PurposePurpose What is the What is the purposepurpose of your business? of your business? To create a customerTo create a customer

– Customers come first; without them there is no Customers come first; without them there is no revenue, no profit.revenue, no profit.

– Customers’ needs come first.Customers’ needs come first.

ObjectivesObjectives What are your sales What are your sales objectives?objectives?

1 To get results for customersTo get results for customers2 To develop new businessTo develop new business3 To retain and To retain and increaseincrease current business current business

– PresellPresell– UpsellUpsell

4 To increase customer loyaltyTo increase customer loyalty

StrategiesStrategies What are your sales What are your sales strategiesstrategies??

To sell solutions to advertising and marketing To sell solutions to advertising and marketing problemsproblems

Complete customer focusComplete customer focus To reinforce the value of advertising and of To reinforce the value of advertising and of

your mediumyour medium

StrategiesStrategies To create value for your productTo create value for your product To become the preferred supplierTo become the preferred supplier

– To establish, maintain, and To establish, maintain, and improveimprove relationships at all levels of the client and relationships at all levels of the client and agency (keep agency informed)agency (keep agency informed)

– To provide the best research, information, To provide the best research, information, and adviceand advice

– To be customers’ marketing consultant by To be customers’ marketing consultant by providing solutionsproviding solutions

StrategiesStrategies

To innovateTo innovate– New packages, new products, new New packages, new products, new

promotionspromotions– New creative approachesNew creative approaches– New technologyNew technology– ““The only functions of an enterprise: The only functions of an enterprise:

marketing and innovation.” Peter Druckermarketing and innovation.” Peter Drucker

FunctionsFunctions

What are a salesperson’s key What are a salesperson’s key functionsfunctions??1 To position your product to have a differential To position your product to have a differential

competitive advantagecompetitive advantage2 To manage relationships and build trustTo manage relationships and build trust

– To create rapportTo create rapport– To empathizeTo empathize– To persuadeTo persuade– To cooperateTo cooperate– To build consensusTo build consensus

Key FunctionsKey Functions

3 To solve problemsTo solve problems– CreativityCreativity– Get resultsGet results

4 To create a sense of urgencyTo create a sense of urgency5 To communicate effectively up, down, To communicate effectively up, down,

and acrossand across– Keep your management and coordinator Keep your management and coordinator

informedinformed– From the street, bring back market and From the street, bring back market and

competitor knowledgecompetitor knowledge

Key Account SellingKey Account Selling People buy for their reasons, not yours.People buy for their reasons, not yours.

– Key account selling is different. Large Key account selling is different. Large accounts have different reasons to buying.accounts have different reasons to buying.

– Old selling techniques are based on small, Old selling techniques are based on small, single- transaction selling:single- transaction selling:

– ProspectingProspecting– QualifyingQualifying– PresentingPresenting

Understanding Buying Understanding Buying DecisionsDecisions

Phases of the buying process:Phases of the buying process:– Recognition of needs:Recognition of needs:

– Prospects are no longer satisfied.Prospects are no longer satisfied.

– Evaluation of options:Evaluation of options:– Begins with confusing array of choices.Begins with confusing array of choices.

– As options narrow, choices become clearer.As options narrow, choices become clearer.– Clear preference emerges.Clear preference emerges.

Understanding Buying Understanding Buying DecisionsDecisions

– Resolution of concernsResolution of concerns– Most complex stage in major account sellingMost complex stage in major account selling– Made over a period of time rather than on a single Made over a period of time rather than on a single

call.call.– There are competing alternatives to choose from.There are competing alternatives to choose from.– There are penalties and risks if a bad decision is There are penalties and risks if a bad decision is

made.made.– Concerns are often hidden--expressed in terms of Concerns are often hidden--expressed in terms of

price.price.

– ImplementationImplementation

Account Entry Strategy - With Account Entry Strategy - With Defined Purchasing ChannelDefined Purchasing Channel

Meet gatekeepers:Meet gatekeepers:– Their job is to filter vendors.Their job is to filter vendors.– They influence access decisions, not purchase They influence access decisions, not purchase

decisions.decisions. Meet influencersMeet influencers

– Cannot make purchasing decisions.Cannot make purchasing decisions.– Have significant influence on decisions.Have significant influence on decisions.– Gatekeepers and influencers claim much more Gatekeepers and influencers claim much more

authority than they have.authority than they have.

Account Entry Strategy - With Account Entry Strategy - With Defined Purchasing ChannelDefined Purchasing Channel

Meet decision makersMeet decision makers– Those who have the power to give you an Those who have the power to give you an

order. order.

Account Entry Strategy - Account Entry Strategy - Without Defined ChannelWithout Defined Channel

Seek A sponsor within the organization in Seek A sponsor within the organization in one of three different areas of focus:one of three different areas of focus:– The focus of receptivityThe focus of receptivity– The focus of dissatisfactionThe focus of dissatisfaction– The focus of powerThe focus of power

Account Entry Strategy - Account Entry Strategy - Without Without Defined ChannelDefined Channel

Seek a sponsor within the organization:Seek a sponsor within the organization:– At the focus of receptivityAt the focus of receptivity– At the focus of dissatisfactionAt the focus of dissatisfaction– At the focus of powerAt the focus of power

Account Entry Strategy - Account Entry Strategy - Without Without Defined ChannelDefined Channel

The dangers of receptivityThe dangers of receptivity– DistractionDistraction– MisrepresentationMisrepresentation– No presentationNo presentation

– Goal is to gain access to decision makers.Goal is to gain access to decision makers.

The Focus Of DissatisfactionThe Focus Of Dissatisfaction Uncover and develop dissatisfaction.Uncover and develop dissatisfaction.

– Most important elements of key account selling Most important elements of key account selling (requires great listening skills).(requires great listening skills).

– Your best friend is the person who is the most Your best friend is the person who is the most dissatisfied (requires great empathy).dissatisfied (requires great empathy).

– Develop dissatisfaction to the point where Develop dissatisfaction to the point where action is an imperative (requires great action is an imperative (requires great questioning skills).questioning skills).

– Gain access to decision maker (requires Gain access to decision maker (requires patience).patience).

Effective ListeningEffective Listening Adopt the proper attitudeAdopt the proper attitude

– Optimistic, open, confident, trusting, Optimistic, open, confident, trusting, respecting and vulnerablerespecting and vulnerable

Shut up and listen. The best sellers are the Shut up and listen. The best sellers are the best listeners, not the best talkers.best listeners, not the best talkers.

Listen actively: nod, use gestures, smile Listen actively: nod, use gestures, smile (responsive feedback).(responsive feedback).

Concentrate on the speaker.Concentrate on the speaker.

Effective ListeningEffective Listening Do not step on sentences.Do not step on sentences. Do not respond to negatives too quickly.Do not respond to negatives too quickly. Do not think of a rebuttal.Do not think of a rebuttal. Respect the other side’s statements.Respect the other side’s statements. Listen for themes.Listen for themes. Listen for emotions (non-verbal clues).Listen for emotions (non-verbal clues). Listen in synchronization--don’t mimic.Listen in synchronization--don’t mimic.

Selling At The Focus Of PowerSelling At The Focus Of Power Never waste access by making these Never waste access by making these

mistakes: mistakes: – Failure to do homeworkFailure to do homework

– Don’t ask stupid questionsDon’t ask stupid questions

– Failure to take controlFailure to take control– No chit-chat. “I know how busy you are, so I want to No chit-chat. “I know how busy you are, so I want to

use your time efficiently. If you agree, I’d like to use your time efficiently. If you agree, I’d like to propose three specific solutions in the next twenty propose three specific solutions in the next twenty minutes.”minutes.”

Mistakes (Cont’d)Mistakes (Cont’d)– Premature meetingsPremature meetings

– Have solutions first.Have solutions first.

– Inappropriate expectationsInappropriate expectations– Don’t get inflated expectations about a fast, Don’t get inflated expectations about a fast,

unilateral decision. unilateral decision.

SummarySummary What have we learned so far?What have we learned so far?

Phase One: Recognition Of Phase One: Recognition Of NeedsNeeds

Uncovering opportunitiesUncovering opportunities– Most important phase of major account selling. Most important phase of major account selling.

If done right, all else falls into place.If done right, all else falls into place.– At this stage, you’re identifying problems.At this stage, you’re identifying problems.

Ask the Discovery Questions.Ask the Discovery Questions.– See workbook.See workbook.

Phase One: Recognition Of Phase One: Recognition Of NeedsNeeds

Goals Of This Phase:Goals Of This Phase:– Uncover dissatisfaction - Without it, no sale.Uncover dissatisfaction - Without it, no sale.– Develop dissatisfaction - Increase Develop dissatisfaction - Increase

dissatisfaction until action is imperative.dissatisfaction until action is imperative.– Selectively channel dissatisfactionSelectively channel dissatisfaction - So that - So that

people at focus of dissatisfaction or power will people at focus of dissatisfaction or power will feel it in areas where you offer the best feel it in areas where you offer the best solutions.solutions.

Set call objectives: some action that Set call objectives: some action that moves the sale along.moves the sale along.– Not “to build relationships,” too vague.Not “to build relationships,” too vague.– Better: “Get introduction to the marketing Better: “Get introduction to the marketing

department.”department.”– Setting call objectives is critical.Setting call objectives is critical.– Must be specific and forward moving.Must be specific and forward moving.

GoalsGoals

Motivation

Goal DifficultyVery Easy Very Hard

Peak Motivation

Phase Two: Evaluations Of Phase Two: Evaluations Of OptionsOptions

Positioning for competitive advantagePositioning for competitive advantage– Make sure prospects have passed the Make sure prospects have passed the

Recognition Of Needs Phase.Recognition Of Needs Phase.– Start creating value for your product/service.Start creating value for your product/service.

– Create a killer presentation.Create a killer presentation.– See Checklist for Solutions-Based Presentations in See Checklist for Solutions-Based Presentations in

workbook.workbook.

– Prospects are dissatisfied enough to take Prospects are dissatisfied enough to take action and accept your solutions as good ones.action and accept your solutions as good ones.

– Now they ask “How do I make the best Now they ask “How do I make the best choice?”choice?”

– May be important influencers or an evaluation May be important influencers or an evaluation committee.committee.

– May be a published media strategy or plan.May be a published media strategy or plan.– May ask for several presentations. Knowing your May ask for several presentations. Knowing your

competition is essential.competition is essential.

Goals Of Evaluation Of Goals Of Evaluation Of Options PhaseOptions Phase

To uncover decision criteriaTo uncover decision criteria– Find out which criteria prospects intend to use Find out which criteria prospects intend to use

to make choices.to make choices. To influence decision criteriaTo influence decision criteria

– Introduce new criteria prospects may not have Introduce new criteria prospects may not have considered.considered.

– Influence relative importance of existing Influence relative importance of existing criteria.criteria.

To maximize your perceived fit with To maximize your perceived fit with criteriacriteria

DifferentiationDifferentiation Customers are not all the same (less Customers are not all the same (less

successful salespeople think they are)successful salespeople think they are)– Business needs, problems (rational)Business needs, problems (rational)– Personal needs (emotional)Personal needs (emotional)

Price is not always the #1 issue (less Price is not always the #1 issue (less successful salespeople think it is)successful salespeople think it is)

DifferentiationDifferentiation Differentiate according to prospects’ Differentiate according to prospects’

reasons for buying.reasons for buying.– Hard differentiators - Measurable, such as rate, Hard differentiators - Measurable, such as rate,

ratings, promotions, demos. Easy to sell; ratings, promotions, demos. Easy to sell; tendency to underprice.tendency to underprice.

– Soft differentiators - Not quantifiable, such as Soft differentiators - Not quantifiable, such as service, trust, reliability, reputation, service, trust, reliability, reputation, relationships, personal concern by seller about relationships, personal concern by seller about problems and results. Harder to sell, take problems and results. Harder to sell, take longer to establish.longer to establish.

Go to Exercise #1 in the workbook.Go to Exercise #1 in the workbook.

When prospects take time to think and When prospects take time to think and evaluate, soft differentiators become more evaluate, soft differentiators become more important.important.– Do not rush prospects, emphasize soft Do not rush prospects, emphasize soft

differentiators, don’t try to close.differentiators, don’t try to close.– Everyone wants a quality product. Help Everyone wants a quality product. Help

customers develop a definition of quality: No customers develop a definition of quality: No preemptions, precise targeting, less clutter, preemptions, precise targeting, less clutter, more product separation, product exclusivity, more product separation, product exclusivity, responsive service.responsive service.

Phase Three: Resolution Of Phase Three: Resolution Of ConcernsConcerns

As the size of the decision grows:As the size of the decision grows:– So does the concern and fear about the So does the concern and fear about the risk of risk of

making an expensive mistakemaking an expensive mistake..– More people become involved, and political More people become involved, and political

concerns increase.concerns increase.– The number and strength of competitors The number and strength of competitors

increase.increase.– Concerns about credibility, competence, and Concerns about credibility, competence, and

reputation become greater.reputation become greater.

– Because of the number of concerns, the longer Because of the number of concerns, the longer it takes to decide. You cannot speed up the it takes to decide. You cannot speed up the process with a clever close.process with a clever close.

– Concerns about implementation grow. Concerns about implementation grow. Relationships, service, and support become the Relationships, service, and support become the key.key.

Goals Of The Resolution Of Goals Of The Resolution Of Concerns PhaseConcerns Phase

To discover if consequence issues exist.To discover if consequence issues exist.– Consequences are deep-seated fears that are Consequences are deep-seated fears that are

more dangerous than concerns.more dangerous than concerns.– ““Do I really want to do business with that company?”Do I really want to do business with that company?”– What will happen to my career if this goes wrong?’What will happen to my career if this goes wrong?’– Prospects often express concerns, but consequences Prospects often express concerns, but consequences

are hidden.are hidden.

To uncover and clarify any consequences To uncover and clarify any consequences issues.issues.– Get them out in in the open if possible. Get them out in in the open if possible.

Difficult. Dig deep.Difficult. Dig deep. To help prospects resolve consequences To help prospects resolve consequences

issues.issues.– You can only help to resolve issues. Since they You can only help to resolve issues. Since they

only exist in prospects’ minds, only exist in prospects’ minds, youyou cannot cannot resolve these issues, only help.resolve these issues, only help.

Price Often A Mask For Price Often A Mask For Consequences IssuesConsequences Issues

A prospect’s first concern is often price.A prospect’s first concern is often price.– Then it diminishes as selling progress and Then it diminishes as selling progress and

value is created.value is created. Last issue is often price.Last issue is often price.

– Typically a mask for consequences issues.Typically a mask for consequences issues. Price is not just CPM or CPP it includes real Price is not just CPM or CPP it includes real

and perceived political, implementation, and perceived political, implementation, and other risks.and other risks.

Return On Investment AnalysisReturn On Investment Analysis ROI analysis helps overcome concerns and ROI analysis helps overcome concerns and

resolve consequences issues.resolve consequences issues. See ROI analysis in workbook.See ROI analysis in workbook.

No PressureNo Pressure The larger the potential sale, the less The larger the potential sale, the less

effective closing techniques are.effective closing techniques are. Putting pressure on a person who is Putting pressure on a person who is

worried about making a decision increases worried about making a decision increases worries and fears.worries and fears.

Phase Four: ImplementationPhase Four: Implementation Immediately after a sale you must put in Immediately after a sale you must put in

more effort, not less.more effort, not less. The implementation phase begins as soon The implementation phase begins as soon

as you get an order.as you get an order.– Buyer’s remorse always sets in – fears are Buyer’s remorse always sets in – fears are

greatest at the beginning of implementation.greatest at the beginning of implementation.– Anticipate how the buyer feels.Anticipate how the buyer feels.– Continual communication and immediate Continual communication and immediate

responsiveness are absolutely vital.responsiveness are absolutely vital.

Phase Four: ImplementationPhase Four: Implementation Service so as to make customers raving Service so as to make customers raving

fans.fans. The best order is always the second one – The best order is always the second one –

that’s when prospects become a customer.that’s when prospects become a customer.– Sell for the second order the moment you get Sell for the second order the moment you get

the first one.the first one. See workbook for a sales service survey.See workbook for a sales service survey.

ImplementationImplementation Develop, don’t just service accounts.Develop, don’t just service accounts.

– Without a goal for increased business, service Without a goal for increased business, service gets soft.gets soft.

– When the goal is to protect existing business, When the goal is to protect existing business, competitors will hunt and accounts will look for competitors will hunt and accounts will look for improvements.improvements.

– Make every service call one that tries to Make every service call one that tries to expand the business – this effort gets expand the business – this effort gets renewals.renewals.

ImplementationImplementation Document good news.Document good news.

– Never give accounts a reason to ask “What Never give accounts a reason to ask “What have you done for me lately?”have you done for me lately?”

– Make stewardship reports.Make stewardship reports.– Conduct new audits to reassess marketing Conduct new audits to reassess marketing

goals.goals.– Influence future decision criteria.Influence future decision criteria.

ImplementationImplementation Your relationship is either getting better or Your relationship is either getting better or

it’s getting worse.it’s getting worse.– What you did yesterday is history.What you did yesterday is history.– Complacency is the worst sales sin. Complacency is the worst sales sin. – ““Only the paranoid survive.” Andrew Grove.Only the paranoid survive.” Andrew Grove.

Types Of SalespeopleTypes Of Salespeople

Farmers Hunters

Type of Current customer ProspectAccount

Evaluation Ratings, weight, reach, Results, solutions,Process frequency, price, clicks goal achievement

Evaluation Easily measured Difficult to measureFocus

Key Selling Negotiating, servicing, Problem-solving,Skills maintaining relationships presenting, closing

Key character- Short-term focus, impatient, Long-term focus,istics complacent, play not to lose competitive, disci-

plined, play to win

New Types Of SalespeopleNew Types Of Salespeople

Levels of Single level Multi levelclient contact

Focus Product, customer’s Customer, personal needs business

needs, solutions

Primary Self Customerinterest

Farmers Hunters

Types of SalespeopleTypes of Salespeople

Hunters do better with larger, key Hunters do better with larger, key accounts.accounts.

Salespeople: “Know thyself.”Salespeople: “Know thyself.” Sales management: “Know thy Sales management: “Know thy

salespeople.”salespeople.”

SummarySummary What have your learned?What have your learned?