As salespeople, it’s easy to get caught up in the excitement of closing the initial deal and forget about customer retention – until it’s too late.
According to Harvard Business Review, acquiring a new customer can cost five to 25 times more than retaining an existing one. This is where strategic account management comes in.
We invited two seasoned sales experts to share their valuable insights with our Ethical Sales Academy. Jessica Roberts is a Senior Account Manager, Enterprise and Strategic at SaaS platform HighSpot, while Adam Huttly is the Founder and Managing Director of sustainable office supplies company Red-Inc.
If you want to learn about the foundations of strategic account management, and how to create a ‘platinum’ service that will position you as a trusted supplier, this is the blog for you!
The roles of sales beyond winning the business
It’s a common misconception that once the sale has been won, sales no longer play a role in delivering the partnership. This, however, is far from the reality.
“Sales never stops. It’s a perpetual cycle: you might get a client over the line, but it’s the sales you do with them – selling yourself and relationships – that are the key to long-term success.” – Adam Huttly
Sales play a big part in retaining and nurturing clients: both selling your product or service as well as selling the value your company is providing. Depending on your industry, there may also be plenty of opportunities to sell further products or services once a client is involved with you. In fact, it’s these post-sales deals that can often bring in the most revenue to your organisation.
A long-term client is worth so much to your business, from additional revenue to them becoming valuable ambassadors and referral partners. Having a plan to nurture these relationships is crucial – you’ll reap the rewards in terms of loyalty.
The foundations of strategic account management
Once the contract has been signed, it’s time to deliver the value you promised during the initial sales pitch. Value will mean something different for every client, so it’s up to you to understand their unique needs and how value can be demonstrated for them, to make sure they see a great return on their investment.
“Once you’ve won a customer, that’s where the work really starts. It’s not the end point, it’s the starting point: retaining them and delivering the best possible experience.” – Jessica Roberts
Strategic account management is multi-faceted, with strong partnerships at its heart. We’ve broken it down into four key stages:
Stage 1: Research
The first stage is getting to know your client deeply and the industry they operate in. Discovery sessions and online research can help here. Consider primary sources such as their website and LinkedIn profiles, as well as secondary sources, such as research papers and investor documents, to learn everything you can.
Stage 2: Understand your client’s business goals
The second stage involves learning about your client’s business goals, and how you can help them achieve these. Find out their strategic priorities and their challenges, and start to see how your business plays a part in these.
Stage 3: Build relationships
It’s also important to unearth personal motivations. Understand the reasons each of your key contacts has for being at the company and why they’re buying your product or service. Use this knowledge to gain a deeper understanding of the people you’re working with.
Stage 4: Create an account management plan
Once all this is in place, move the partnership forward by creating an account management plan to execute key strategic needs and priorities. Communication is key to this. Think about the cadence and frequency of how you’ll be in touch with clients, as well as the method. Some will prefer monthly written updates, some will want a weekly phone catch-up, while others will just need a quarterly check-in.
Top tip: Methodologies such as MEDDIC can help to ensure you’re following the right path and have all the information you need. A solid understanding of the client’s business and its position will help build trust in your company and this new relationship.
How to deliver a ‘platinum service’ to clients
To compete in today’s market and retain clients you must deliver an exceptional service. Making a client money or solving their problem or pain point is important, of course, but so too is how you make them feel.
Service is a massive differentiator, and is what will set you apart from competitors. A platinum service can range from little things, such as promising to respond to emails within a set time, to bigger things such as educating a client in new skills or sharing industry insights. Always keep looking for ways to give a client more than they asked for in the first place, and thinking up ways you can make them look brilliant.
Consistency is key in delivering a platinum service. A client needs to get the same amazing experience from whoever they deal with in your company. There’s no point in having a passionate and animated sales team but a lacklustre client success process. Every single touchpoint across the business needs to be consistently brilliant.
When you get strategic account management right, and offer a platinum service that delivers a great product or service along with exceptional value, you become a trusted supplier who clients know they can rely on. This then offers more opportunity to sell, potentially opens the door for more sales via referrals, and will be a key point in defending your price when the contract comes up for renewal.
“If you’re doing things right, people tend to move away from the price of things. They buy into your business and your mission.” – Adam Huttly
At the heart of strategic account management is knowing that you’re not just another vendor to your client: you’re a strategic partner. When you can truly say you’re a crucial and valued part of their business, that’s when you know you’ve got everything right.
Ready to transform your client relationships? Sign up for access to our Ethical Sales Academy masterclasses today!