In this article, leading Sales Expert Andy Preston talks about the death of Account Management… and in particular, how many Sales Leaders failure to recognise this vital point – and how this then causes problems in their sales process, their recruitment process and how it negatively impacts on the activity, behaviour and ultimately the sales figures of their sales team!…..
Account Management is dead. For most companies it died a while back. But people have been pretending not to notice. Trying to keep the body warm. Keeping it on life-support, desperate to try and pretend it’s still alive.
But it isn’t. And it hasn’t been for a while.
You see, things have moved on. I’m not saying that Account Management belongs back in the 1980’s with luminous socks, ‘Relax’ t-shirts, and the Chris Waddle Mullet. But it certainly belongs in the past.
Account Management comes from the days where we labelled salespeople ‘Hunters’ and ‘Farmers’. It comes from the days when we were making enough profit out of an account to let a salesperson ‘sit’ there and deal with them without any concerns over what they were doing. It comes from the days when customers were loyal and kept their business with a particular supplier for years.
Those days are gone. Long gone. In these economic times, customers want more from their suppliers, but are prepared to pay less for it. Buyers are more ‘promiscuous’ with potential suppliers and play them off against each other. Prospects in some cases verge on ‘bullying’ suppliers to get the best deal for themselves.
Account Management wasn’t designed for these times. Therefore, in order for you and your Sales Team to be as successful as you COULD be… and make sure you aren’t missing business opportunities…. you need to re-evaluate the roles within your sales team, and see if ‘Account Management’ still fits in. I think you’ll find it doesn’t.
So if Account Management is truly dead, what should be the roles in your Sales Team right now?….
It’s my belief that there are now 3 roles in your Sales Team. Of course, depending on the size of your team then one individual may have to wear more than one ‘hat’, but it’s important in the first place to define these roles, as that may affect what you do next.
1) The first one is ‘New Business’. This is where the individual brings in new, fresh business from prospects that don’t currently spend money with you. Using a variety of prospecting methods, the ‘warmest’ this role gets is trying to win back a lost (or lapsed) customer. Otherwise it’s all about bring it in from scratch!
2) The second role is ‘Account Development’. The main function of this role is about bringing in more business from existing accounts – i.e people who are ALREADY spending money with you. This role is about getting those clients to spend more – whether that’s increasing order value or order frequency, taking business off your competition that may be active in those accounts, or finding new ‘buying points’ in those accounts (and getting them to spend with you), that’s the focus of the Account Development role.
In other words, it’s like having a ‘New Business’ focus within your existing accounts, and therefore requires a different skillset to the ‘new business’ role, and most definitely a different skill-set to the old ‘Account Management’ role!
3) The third role is what I refer to as ‘Account Servicing’. If I was being harsh, I’d label this ‘Customer Service’ – in effect the focus of this role is to keep the customer spending with you, deal with any complains, problems or queries, and ‘service’ their account.
Okay, so now we’ve defined these roles, what else do you need to do?
So, now you know the roles involved, it’s about ensuring you separate these roles in your team to give yourself the best sales results!
The skillsets are different for new business, account development and account servicing. Yes there can be some ‘crossover’. Yes, in a smaller sales team, one person could undertake two roles (or even all 3). But you’ll be diluting their effectiveness, and more importantly losing business. Definitely not advisable in a sales team when it can be avoided!
I’ve seen this happen time and time again over the last few years in Sales Teams that I’ve been brought in to increase the sales of. You see, when you put a true ‘new business’ person in an ‘account development’ role, they quickly get bored of dealing with existing customers and want to bring business in from scratch.
Meaning they miss opportunities with existing customers and lose sales. Ultimately they then leave because they are unsatisfied, or you sack them because they’re not performing. Neither of those is a good outcome.
If you put an ‘account development’ person into a ‘new business’ role, often they have ‘call reluctance’ or ‘phone fear’. They don’t want to be calling people they don’t know. They hate the idea of being seen as a ‘cold caller’. Therefore their activity levels are lower than average (unless their immediate manager is stood over them, ‘forcing’ them to pick up the phone more often!), their ‘new business’ skills aren’t up to scratch – then ultimately they leave because they’re unhappy, or you sack them as they’re not capable of doing the job.
Another big problem is when either of the first two categories are pushed into ‘account servicing’ mode – even temporarily. The true ‘new business’ person hates this, and avoids it at all costs – leading to customer complaints, and lost contracts/business because the ‘new business’ person didn’t follow though or sort the issues quickly enough (which they don’t see as their job by the way).
This is where the distinction between the new role of ‘account development’ and the old role of ‘account management’ is even more critical. The true ‘account developer’ understands that customer service, complaints, queries etc are part of the ‘account servicing’ role. Whereas the old ‘account manager’ would get dragged into account servicing/customer service issues all the time.
Part of this would be because it’s their comfort zone – helping the customer is part of good account management, right? So they’d take that on board and spend all their time doing customer service or admin tasks, which is a great excuse for not picking up the phone and developing their existing accounts isn’t it? And partly because they often believed no-one else in the business would sort it out. The ‘account servicing’ role deals with that sort of nonsense immediately.
Spending too much time on customer service/admin tasks was a habit of the old ‘account managers’. They usually weren’t paid for that. Their managers didn’t want them doing that. But in some cases up to 75% of their could be spend in that area. That’s the role of ‘account servicing’, which is on a completely different pay-scale to what the old ‘account managers’ expected to be paid.
Here are 10 common signs that you or your team) are desperately trying to keep ‘Account Management’ alive in your company – and if you are guilty of one or more of these, we DEFINITELY need to talk!
1. You have/hire ‘Account Managers’ that seem reluctant to pick up the phone?
2. Your team spend too much time in ‘Account Servicing’ mode (admin/service tasks) rather than what you pay them to do?
3. Your salespeople don’t seem that interested in developing the existing accounts to spend more?
4. The team seem to focus on ‘developing relationships’ rather than closing sales?
5. Your sales team keep finding ways to justify why THEY should solve an existing customer problem?
6. You have existing accounts that are also spending money with your competitors?
7. An existing client’s spend doesn’t increase year-on-year – in fact in some cases it goes down?
8. One (or more) of your sales team start telling you why an existing customer can’t spend more?
9. You get the feeling your sales team are complacent, or stuck in comfort zones?
10. You have low activity levels for new business (or lower than you’d like?)
If you’re experiencing ANY of the above symptoms right now, we DEFINITELY should have a conversation. If you or any of your team are still in the old ‘Account Management’ mindset right now, I GUARANTEE it’s costing you sales…..
You can contact Andy on 0161 401 0142 (+44 161 401 0142 outside the UK) or through the web here