Customer Engagement
Insights and Best Practice
Learn how Key Account Managers are making positive impacts, solving real problems for their customers, and building best practices inside their organizations.
Customer Engagement
Interview Questions to Help You Identify The Best Account Management Talent
Poor hiring decisions can be quite expensive. The costs involved…
February 22, 2021/by Jennifer PinterWhy Your QBRs aren’t as Effective As They Could Be
Only 29% of B2B customers are fully engaged and the other 71%…
February 15, 2021/by Alex RaymondThree Books Every Strategic Account Manager Should Read in 2021
2021 began, for most of us, as a year that didn’t feel very…
February 8, 2021/by Jennifer PinterIntroducing KAMGenius – the Best Tool for Account Managers to Grow in Their Career
If you have been following me for some time, you know I always…
February 1, 2021/by Alex RaymondHow to Build a Kick-Ass Account Plan
Customers have never been harder to engage or easier to lose.…
January 25, 2021/by Alex RaymondSigns That It’s Time To Invest in Key Account Management Software
It’s true now and it was true pre-COVID-19: customers are easier…
January 18, 2021/by Melissa RogersHow and Why to Track Customer Outcomes
There’s been a lot of talk lately about getting to the next…
January 11, 2021/by Margot HowardWhat To Do When Your Client Executive Sponsor Leaves
If your stomach flipped just reading that headline, we get it.…
January 4, 2021/by Melissa RogersHow to Turn Customers into Advocates
Existing customers are more profitable and easier to sell to…
December 28, 2020/by Margot HowardOvercoming the 4 Major Risks of Account Based Engagement
As customer demands and dynamics shift, smart B2B companies are…
December 21, 2020/by Alex RaymondHow to Respond to Negative Customer Feedback
We all want positive feedback, but sometimes we don’t get it.…
December 14, 2020/by Margot HowardKey Account Managers: How To Set Yourself up for Success in 2021
2020 has been a wild ride, to put it mildly. And the only thing…
December 7, 2020/by Melissa RogersCategories
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Why Forward-Thinking Chief Revenue Officers are Investing in Key Account Management Software
/in Key Account Management /by Margot HowardAccording to the Pareto Principle, or 80/20 rule, 80% of your sales come from 20% of your existing customers. CSO Insights found that 70% of revenue comes from existing accounts. Plus, a classic study found acquiring a new customer is more expensive than retaining an existing one, and increasing customer retention by 5% increases profits by 25% or more. The same study revealed that existing customers buy more often and spend more than newer customers.
So, it makes sense to focus on retaining top customers while chasing new business to maximize revenue returns. That’s why it’s essential to implement an effective key account management program that builds deep relationships with the top 20% of your customers to deliver the value they expect, retain their business, and continue growing.
Chief Revenue Officers (CROs) are responsible for all company-generated revenue. That means focusing on the entire customer journey from lead to customer and beyond. That includes finding ways to improve customer experience for existing customers in the long-term.
Minimize churn to accelerate revenue growth
Churn kills companies by decreasing the number of existing long-term customers and increasing the need to acquire more new customers just to maintain revenue. Since it costs more to win new customers than it does to retain existing customers, churn makes revenue growth an uphill battle. Conversely, increased customer retention provides a stable base to build on. This enables you to leverage the positive revenue impact of increased account retention making it easier to attain greater growth targets.
Invest in key account management (KAM)
An effective key account management (KAM) program is essential to minimizing churn. Focused on developing relationships with the top 20 percent of existing accounts, these account managers work with these key customers to help them achieve their goals, providing them with the value they seek. The result is a better customer experience and retention. So, to minimize churn it’s necessary to invest in your key account management (KAM) organization and process.
KAMs need tools too
Investing in your KAM organization and process needs to go beyond training. Just like other business units such as marketing, sales, and finance, KAMs need a purpose-built set of tools too. They need software designed specifically to guide them and simplify processes so they’re operating at peak efficiency and effectiveness.
If you’re thinking that your CRM is a KAM tool, think again. Your CRM is not suitable for KAM and customer engagement tasks. You need to move beyond Excel spreadsheets and PowerPoint decks by giving account managers access to specialized software that integrates completed account plans into their daily workflows, so all key elements of the plan are implemented.
The KAM process involves many complex elements and CRM alone cannot support the development and implementation of plans. Although useful for tracking contacts and past account history, CRMs aren’t effective for tracking all the long-term strategic elements of key account plans.
KAM software is a template-driven guide & roadmap for KAM success
Software designed to properly support successful KAMs incorporates templates and a roadmap to facilitate the account management process. This means your team isn’t reinventing the wheel or starting from scratch every time they prepare for an account review, create an account plan, or track progress toward account goals. It includes templates and automation such as:
Plus, KAM software helps account managers always know what to do next, thanks to the platform’s built-in guidance.
Don’t leave your KAM team stranded
Smart CROs are investing in dedicated tools like Kapta to optimize KAM effectiveness and efficiency. They are leveraging KAM technology solutions to streamline tasks like:
This frees up your account management team to do more thought-provoking tasks and spend more time with their customers.
Ready to increase the productivity of your KAM team by providing them with the tools they need to succeed? Schedule a demo today.
4 Dysfunctional Beliefs of Quarterly Business Reviews
/in Key Account Management /by Alex RaymondWhen it comes to Quarterly Business Reviews (QBRs) most teams are not taking full advantage of the opportunity these meetings present. The opportunity to work with, have a conversation with and build a joint vision of the future with their key customers. Most people are not putting their best foot forward to engage the customer or get what they really want out of these quarterly reviews. As a result, they’re leaving themselves open to risk.
Kapta did some research by speaking with senior executives in various industries. We asked them what they think about the QBR meetings their vendors are doing with them, how it’s going, and what they’d change about these reviews. We found that only 28% of your customers think QBRs are a valuable use of their time. The other 72% told us it’s a waste of time, these meetings are too long, too much information is presented, and the meetings are too tactical. Based on our conversations with these customer executives, they said that vendors talk a lot but don’t listen, don’t do their homework, and don’t ask the right questions. They also questioned the structure, frequency, and format of these meetings.
So, to really excel as account managers and be the trusted advisors or strategic partners you want to be with your customers, you’ve got to bridge this gap. You need to understand why there is a disconnect causing you not to be aligned with your customers. To do so you must change your mind by not using the wrong mental models within your QBRs. You have a set of false assumptions or dysfunctional beliefs about QBRs. They’re outdated and need to be updated so they’re aligned with current customer expectations of how you engage with them, work with them, and build partnerships with them. Let’s look at four dysfunctional beliefs around QBRs, how we can reframe them, and what actions we can take to change them.
Dysfunctional Belief #1: A QBR is a presentation
If you believe this you think you’ve got to show up with X number of PowerPoint slides, walk through all the slides one by one with the customer, and present all the information. You may also think you need to include things in your presentation like a photo of your office building, a product roadmap, or org charts. This only serves to crowd out the message you’re trying to deliver while causing you to simply show up and throw up during the QBR.
Reframe this belief so you think of a QBR as a fantastic opportunity to connect with your customers for a conversation about what matters most to them. So, you’re not showing up, just presenting, going through slides, and overwhelming your customers with data. You need to think of quarterly reviews as a huge opportunity where teams from both sides get together. A chance to talk, share ideas about what could be happening in the future, how things are going, and all the things that matter to the customer in a detailed conversation.
Actions to take to move away from this dysfunctional belief include rethinking how you spend your time with the customer. Whether you have 30, 60, or 90 minutes for the meeting, you want to make sure you’re making the best of that time. Start by having an agenda. Then share your agenda and slide decks with your customer 48 hours ahead of the meeting. This helps the customer prepare for a meaningful conversation. Then you and your team need to write down your questions as well. You can use the time to do a Voice of Customer (VOC) interview and learn more about your customer’s goals, needs, and initiatives so you can align behind them effectively. This is using the time in a more effective and strategic way.
Dysfunctional Belief #2: I have to do all the work myself
You may believe that as the account manager or CSM you need to do all the work yourself since it’s your account. You feel that you need to work with the customer, build the presentation, put on a show during the review, do all the talking, and run the meeting all by yourself.
Reframe this belief by thinking about the QBR as an opportunity to co-create or partner with your customer to create a meaningful conversation.
Actions to take to move away from this dysfunctional belief include getting your client more involved in preparing for the meeting. Ask for their input on the agenda. Have them contribute data and insights. Ask them to co-run the meeting with you to encourage a balanced conversation with both sides speaking equal amounts of time. The result is deeper engagement during a meeting that’s more productive and meaningful for all involved.
Dysfunctional Belief #3: QBRs are about playing defense
Believing this means you think you need to justify your existence to your customer because you’re a lowly vendor compared to your huge key account customer. And you feel you have to show up and do the QBRs to remind your customers of who you are, so you remain relevant to them, and so they don’t drop you. This means you don’t have a proactive offensive plan and wind up feeling reactive, leading to less effective results.
Reframe this belief by remembering that you’re a strategic partner for your clients, you’ve earned a seat at the table. They’re working with you and your company for your insights, expertise, and the value you provide. You help them meet their goals and focus on bigger picture items. So, don’t be defensive when it comes to QBRs. Be proactive about how you work with customers. Don’t play not to lose—play to win.
Actions to take to move away from this dysfunctional belief include going into the QBR ready to share points of view, big ideas, insights, benchmarks, and comparisons—all the things your customers hired you for. And remember the sales adage that ‘you get sent to who you sound like.’ So, in these meetings with executives on the customer’s side, talk like an executive. Be strategic by talking about big ideas. Lead the brainstorm, really showing up as a strategic partner or trusted advisor to your customer. When you do this, you’ll no longer feel the need to play defense.
Dysfunctional Belief #4: QBRs are backward-looking
You may believe that QBRs are called reviews because they are designed to look back at what has happened during the last 90 days, but they are so much more than that.
Reframe this belief by remembering that QBRs are an opportunity for a conversation co-created with your customer from a strategic place. So, these meetings can be future-focused as well and what transpired during the past quarter can be the starting point for that conversation about what’s next or where we go from here.
Actions to take to move away from this dysfunctional belief include preparing forward-looking, open-ended strategic questions to prompt great discussion while preparing for these meetings. These questions should be about working and partnering on mutual goals, ideas, and milestones. And getting a commitment from both sides as to who’s doing which activities to work toward these shared targets.
Conclusion
Reframing these dysfunctional beliefs will lead to better QBRs and the following results:
Kapta has all the tools to help facilitate the QBR preparation process. Interested in making QBR preparation easier? Learn more in our KAMGenius online training course.
Tips for Getting Off to a Good Start with Your New Strategic Accounts
/in Account Management, Customer Engagement, Key Account Management, Strategic Account Management /by Alex ThrasherFor better or worse accounts get shaken up at the beginning of the new year. You might be left to build new relationships at important companies that you don’t have a relationship with or even worse, customers that didn’t have a strong relationship with their previous account manager. How can you get off on the right foot with your POC and build engagement with your new accounts?
Meeting Existing Customers for the First Time
Many key account managers will jump on the phone for the first time with a new account and put the ownness on their customers to update them on the account status and history. While open-ended questions are an important part of the sales process, doing this with a transitioning contact or account can make you look unprepared and unknowledgeable. Not a great place to start. In a perfect world, the previous account manager would have left detailed notes in salesforce, formally transitioned the account to you, and been on great terms with the customer. However, as any account manager knows – this isn’t always the case.
Whether your account is disengaged, unhappy, or excited to meet you, properly preparing for your first meeting with thoughtful questions can make all the difference in starting out on the right foot or even be the first step to turning around an account headed towards churn.
When the Account Notes are Bare Bones…
Meeting an account for the first time without solid account notes is a difficult situation to be in. Unfortunately, most account managers will find themselves here on more than one occasion. That doesn’t mean that your first meeting can’t be productive or thoughtful. Account managers in this predicament should do their homework to show their customers they are committed to their success.
Suggestions for Research
Talk Track with Customers
Start, Stop, Continue
Have a frank start, stop, continue conversation with your customer. This is a quick, sometimes delicate, 15-minute conversation – no need to belabor anything or talk bad about a past account manager who worked with your account last year. These conversations can be great discovery calls that can drive engagement and help you figure out where things might be falling off track, or where conversations should pivot down the road.
Start:
What topics were missing from meetings that the customer wants to include? What actions were missing that they want you to do for them? This conversation should have a value-driven lens and can help you understand where the customer’s priorities are and how they like to work with their account manager.
Stop:
What did they dislike about the partnership that they wanted to stop? Make sure to ask discovery questions to get to the real root of the problem with these. For instance, let’s say your customer tells you they want to stop having weekly check-in calls and only meet once a month because they are busy, and the calls aren’t helpful. Dig into that further! Are the topics covered not relevant? What would make those calls more valuable to them?
Continue:
What did they like about working with their last account manager that they would like you to continue to do? You can dig into these suggestions further by asking goal-oriented questions. For example, if a customer said that quarterly product roadmap meetings are something, they want to continue you can ask them how roadmap meetings help them accomplish their goal of X?
These questions are a great way to spark account management discovery and give you some thoughtful fodder to drive account plans and your communication strategy.
Conclusion:
Customers are easier to lose and harder to engage than ever. Starting off on the right foot with your accounts and demonstrating you are a thoughtful, trusted advisor can make all the difference in keeping your customers happy and successful.
Want to learn more account management best practices? Take our online account management training course.