Account Management: A Complete Guide to CSO Strategy | Gartner

by | Jan 11, 2024 | Gartner, News & Insights

ns, you can increase the chances of building deeper partnerships and larger deals.

  • Future opportunity growth. Consider growing product lines and sales potential vs. a gradual decline or potential loss of business in an account.

  • Account profitability scorecard

    A focused and profitable account management strategy is paramount to maximizing retained revenue and profitability. However, according to a recent survey of sales leaders, the account planning process isn’t adding tangible value to these activities.

    Sellers targeting dimensional account management can combat this trend by using an account profitability scorecard to help make data-driven decisions. This account-centric, profit-driven approach helps organizations establish and manage their key accounts.

    Key account profitability is determined by profit dollars, and hinges on average profitability scores that sales personnel assign to their accounts. But factors other than average profit dollars can also be used, such as product purchases, organizational values and add-ons (upsell, support subscriptions and renewal of subcomponents of a product purchased), to get a fuller view of account profitability.

    We advise sales organizations to invest in a single account management program that defines a successful sales process and sales force automation to help sellers target customers worth hunting for, and ultimately deliver outstanding performance across multiple new and existing customer interactions.

    A structured key account program delivers greater returns

    While account management is focused on customer satisfaction, key account programs focus on maximizing margins, growing share of wallet (SOW) and prioritizing sales investments in high-impact accounts. These are four steps of key account programs:

    • Enable your account teams. Provide your teams with the tools, training and knowledge they need to grow your accounts. Make sure to hire and fund account manager positions, if required.

    • Segment your key accounts. Focus your efforts and resources on the most valuable accounts. Set tiered goals, and determine appropriate initiatives and investment levels for each account based on key metrics such as account profile, strategic account goals, soft metrics, resources and relationship depth.

    • Use a systematic approach. The best account teams prepare carefully for each key account opportunity, establish an account planning process and turn account stock into trusted allies, with the sale of all stars in mind.

    • Differentiate yourself. One of the strongest dimensions of account management is turning satisfied key accounts into actively promoting key accounts. Account managers can actively seek out loyal customers to serve as your best foot soldiers, even turning them into brand ambassadors.

    “A structured key account program can drive 20-25% growth in key account sales.”

    Gartner, Achieving Greater Returns from Key Accounts, Aron Ohye, Patricia Adams, 27 July 20

    Source article: https://www.gartner.com/en/sales/topics/account-management-and-growth