My job designation is "Business Development". So I am bound to spend time reflecting on more efficient ways to develop business.
I understand that relationship is the key. But how do you get yourself out of the transactional selling space and move into that of a trusted solutions provider?
I learnt the answer by studying how a global leader in consulting operates. They don't have a function called "Business Development". Rather they pioneer the concept of "Strategic Account Managers (SAMs)"
So what does a SAM Do?
A SAM has, say, 10 key client accounts to handle. He develops a 15-page word document called Strategic Account Plan (SAP) for each of his key account. And once this SAP is approved by his boss, it becomes his Bible for the year ahead.
What goes inside a SAP?
It is always better to have annual renewable contracts than piecemeal work orders.
At the end of the year, If a SAM does not generate the revenue planned from a client, then the client account is reassigned. And a SAM is replaced if he loses more than 30% of accounts originally assigned. However, SAM has the liberty to get an account reassigned anytime and instead add a new account to his list IF the new account is not already someone else's within his company.
So far, this is the most efficient way to engage clients and develop business.
I understand that relationship is the key. But how do you get yourself out of the transactional selling space and move into that of a trusted solutions provider?
I learnt the answer by studying how a global leader in consulting operates. They don't have a function called "Business Development". Rather they pioneer the concept of "Strategic Account Managers (SAMs)"
So what does a SAM Do?
A SAM has, say, 10 key client accounts to handle. He develops a 15-page word document called Strategic Account Plan (SAP) for each of his key account. And once this SAP is approved by his boss, it becomes his Bible for the year ahead.
What goes inside a SAP?
- A SAP starts off with an client organogram where all the key stakeholders are mapped. When I say key stakeholders, I mean those who will decide and use the services that SAM has to offer in addition to the Contracts & Procurement guys.
- Budget and Trend Analysis - Answers the question on how much the client has spent on similar services in the past few years.
- Competitor Analysis - How many competitors have worked with this account last year? What was their share of the total budget pie?
- Penetration Strategy - Define Focus Areas of what services to sell to this account this year based on recent market maneuvers of the company.
- Communication Plan - Define number of meetings to be had every quarter and with who. Find out about the events for the year ahead which this account is most likely to participate and plan to be there.
- Revenue Target - Isn't this self-explanatory?
It is always better to have annual renewable contracts than piecemeal work orders.
At the end of the year, If a SAM does not generate the revenue planned from a client, then the client account is reassigned. And a SAM is replaced if he loses more than 30% of accounts originally assigned. However, SAM has the liberty to get an account reassigned anytime and instead add a new account to his list IF the new account is not already someone else's within his company.
So far, this is the most efficient way to engage clients and develop business.
