For a business enterprise, not all its customers are equal in terms of the volume of business or profitability they bring to the enterprise. Certain customers very important for the business enterprise and may come under the category of the enterprise’s largest customer, highest profit-earning customer or significant national or international customer.
If the entrepreneur of business enterprise does not practice relevent accounts management strategies, then he/she should seriously consider doing so. Account management strategies are a critical element in developing business sales and customer relationships. In the USA, Lewis Daidone helps you in the above with care. The Lewis Daidone CPA office is reputed for both small and large companies in the field of accounts management.
Account management focuses on those customer accounts that symbolize a significant percentage of the business enterprise’s turnover. This is in terms of the volume of sales, specific products sales, national and international account status and profitability. For instance, if particular customer buys eighteen percent to entrepreneur’s products or services, then that customer becomes a key account to the entrepreneur’s business.
However, if a customer only buys one percent or less of the entrepreneur’s overall sales volume, such a customer is important but the entrepreneur does not recognize him/her as a key account. Key accounts have considerable power in building relationships even with suppliers. It depends upon the entrepreneur to manage that power and build a relationship into a balanced partnership.
When an entrepreneur develops a sale plan, it is essential that he/she include significant account management strategies that also include managing the worst-case scenario of losing a key account and handling the loss. In such a situation, the survival of the entrepreneur’s business depend upon his/her willingness to respond and be proactive to the situation rather than react. It is important for the entrepreneur to develop an effective scenario plan and scrutiny that assists in addressing the survival outcome.
Account management builds a focus on the overall value the customer brings to the entrepreneur’s business. It is essential to consider and appreciate not only the sales volume but also the profit element. Even the geographical proximity, long-term volume and relationship growth possibility along with the complexity or simplicity of providing a product or service are equally essential.
The seven key accounts management tactics that an entrepreneur needs to incorporate to build an effective sales program are:
- Establish a single point of contact for the key account, i.e., key account manager and appoint internal staff to support the key account;
- Introduce volume discounts, rebates and other price incentives that every key customer expects;
- Build a priority ordering program for the enterprise’s products for the key account(s);
- The entrepreneur needs to customize his/her product or service for the key account;
- The entrepreneur needs to match his/her sale relationship with the key account;
- The entrepreneur should establish cross-business teams and initiatives to enhance services in the form of product development teams, quality development teams and branding efforts.
- Provide integrated delivery, order fulfillment, inventory and invoicing.
Most entrepreneurs adopt account management strategies in business-to-business sale environment rather than greater individual business-to-customer-selling environments. It is imperative for entrepreneurs to meet their key customers’ need as a driving force of their business. When you visit the Lewis Daidone CPA office, you will get personal guidance for your business success!
