Strategic account management, sometimes referred to as key account management, is an initiative that spans an entire MSP company to form robust and mutually beneficial relationships with top clients. These relationships are vitally important. Consider the fact that as little as 20% of all customers often account for upwards of more than three-quarters of the typical business’s revenue. If one of these important accounts is lost, it could have negative ramifications that last for months or years. Losing such an important client could even doom a small business. Here is a look at some of the top reasons why businesses should hop on board with strategic account management:
Boost Customer Satisfaction
Strategic account managers make use of resources as necessary to guarantee important customers are content with all aspects of the service. The strategic account management team requires commitment from senior-level executives as well as others who interact with the decision makers on these accounts. Once all resources are coordinated and the customers are fully satisfied, the most valuable revenue-drivers will be in your back pocket for some time to come.
Enhanced Use of Resources for Sales
This strategic account management approach will allow for sales resources to be used in the most prudent manner possible. These resources will be reserved to retain clients who are most inclined to create high levels of revenue. This is why sales teams often implement a consultative sales strategy. A thorough understanding of client requirements is obtained to minimize risk and ultimately boost business performance.
Strategic Account Management Provides More Opportunities to Grow
Give strategic account management a chance and there is a good chance your organization will grow quite rapidly. Furthermore, your customers will prove loyal and drive your profits across posterity. So, do not underestimate the importance of maintaining strong relationships with important accounts across time. These key clients will prove essential to maintaining healthy revenue streams as time progresses.
The typical MSP company’s key accounts tend to stick around for the long haul, yet it is important to note some such customers are not actually profitable for the business. So be sure to invest the time and effort necessary to assess the profitability of key accounts. Pinpoint those that are profitable, analyze the cause(s) of profitability (or lack thereof), and proceed accordingly.
Enhanced Account Control
Strategic account managers will strive to form robust relationships across the customer organization with an especially strong focus on the senior level. Handling important accounts at the highest possible level empowers the business to better understand the customer’s decision-making process. It also allows for a greater understanding of other important considerations like the manner in which suppliers are evaluated. Those who show they provide strategic advantages to the revenue-driving accounts will ultimately bolster relationships, boost account control and beat out the competition.
Start Planning Today for the Implementation of Strategic Account Management
Share this article with your staff and discuss strategic account management in-depth. It will not take long to implement this approach and you will be able to enjoy the results sooner rather than later. Give strategic account management a chance and you will find it solidifies the foundation of your business in that the core clients are emphasized. This is the strategic use of resources necessary to make the most of every dollar and retain those key customers. Get your MSP company team on board with strategic account management today so they can start planning for its implementation. You will likely find your team is excited to shine the spotlight on those beloved highly-valued customers.