Why Customers Want a Strategic Account Manager Not a Strategic Account Salesperson

1. Raising Sales Effectiveness Why Customers Want a Strategic Account ManagerNot a Strategic Account Salesperson

2. Agenda • The Global Business Challenge • Beyond Sales Excellence to Account Management • Managing a true partnership between your company and the Customer • Customers’ Needs: • Suppliers’ needs: • Core competencies to develop: the Account Manager model • How to Prepare • A look into the future

3. Beating The Competition

4. The Difference Between Competitive Winners & Losers

5. Why The Winners Strategy Worked

6. Time For a Little Friendly Competition!

7. Competitive Sales in the 21st Century • How well do we really understand the world of Business to Business (B2B) Sales? • How much do we know about the typical B to B Salesperson ?

8. Competitive Sales in the 21st Century A quiz: From the Bureau of Labor Statistics Who Wants To Be “Better Than” A Millionaire

9. What profession has the highest average return for their investment in college education? A. Doctor B. Lawyer C. Athlete D. B-B Account Manager Competitive Sales in the 21st Century

10. What profession has the highest average return for their investment in education? A. Doctor B. Lawyer C. Athlete Competitive Sales in the 21st Century D. B-B Account Manager

11. What is the post graduate advantage of graduating from one of the 70+ Universities that offer a sales curriculum A. 90% already have jobs at graduation B. They are 30% less likely to fail in those jobs C. They “ramp up” 50% faster than other graduates D. They are offered higher starting salaries Competitive Sales in the 21st Century

12. What is the post graduate advantage of graduating from one of the 70+ Universities that offer a sales curriculum A. 90% already have jobs at graduation B. They are 30% less likely to fail in those jobs • C. They “ramp up” 50% faster • than other graduates D. They are offered higher starting salaries Competitive Sales in the 21st Century

13. Which profession has the highest suicide rate? A. Dentist B. Psychologist C. Business Executive D. Laborer Competitive Sales in the 21st Century

14. Which profession has the highest suicide rate? B. Psychologist C. Business Executive D. Laborer Competitive Sales in the 21st Century A. Dentist Sales is lowest

15. Which profession has the lowest rate of early heart or other stress related diseases? A. TV Personality B. Building Maint. C. Professional Sales People D. Politics Competitive Sales in the 21st Century

16. Which profession has the highest divorce rate? A. Surgeon B. Entrepreneur C. Writer D. Dentist Competitive Sales in the 21st Century

17. Which profession has the highest divorce rate? A. Surgeon B. Entrepreneur C. Writer D. Dentist Competitive Sales in the 21st Century Sales is 2nd lowest Who is lowest?

18. D. Dentist Catholic Priests Competitive Sales in the 21st Century Which profession has the highest divorce rate? A. Surgeon B. Entrepreneur C. Writer Sales is 2nd lowest Who is lowest?

19. Today’s View from 10,000 ft. Where Are We Today ?

20. The Global Business Challenge There is little to no competitive advantage based on: Product quality (all serious competitors have the same) Cost (Supply chain management and Global sourcing level the field) Innovation is short lived • no global protection of Intellectual capital, and • even where it exists reverse engineering debases

21. The Global Business Challenge The digital impact has switched the information advantage to the customer Sellers need recognize most the 4 most important things know about successful selling into today’s unconventional business world.: • Selling is now More Science Than Art • Professional Sales Roles Have Become Differentiated and Specialized • The Internet has Made Sales Professionals More Important 4. Universities and colleges now produce top sales professionals.

22. The Challenge: The Lack of Sales Science • Starting with Fredrick Tailor, business has progressively developed more systematic disciplines: • Moving from numerical process control, to total quality management (TQM), to ISO, to business analytics and finally leading to today’s actuarial applications and predicative business analytics. • Until recently TQM and six sigma haven't been applied to Sales: There has never been a “TQSalesM” • The lack of truly analytic processes have led to failure rates unacceptable in any other business function • 20-25% customer churn, • 30%+ Sales person turnover • 40% Sales manager turnover

23. Developing a Science of Sales With the right information we can assess and predict the future • Insurance companies whose actuarial science is the most accurate future prediction system, can predict things that go wrong • the likelihood of illness, accident, even death: but, • Even though they can’t even define health”…except as a lack of illness • The Gambling industry can control and predict their rate of winning • “Moneyball” brought actuarial science to sports • The same actuarial research, science and predictive statistics can be applied to sales

24. Texts That Cite Chally Sales Research

25. Companies investing in sales during previous downturns outperform peers when economy recovers SG&A (as % of sales) SG&A SG&A (as % of revenue) growth1 SG&A (as % of sales) SG&A EBITDA margin increase (%)1 SG&A (as % of sales) SG&A Revenue growth (CAGR)1 …and EBITDA margin improvements in the years following the recession Companies that invested in growth during the previous downturn… …outperformed their peers at both top line growth… Recession 1.5x +57% Leaders Laggards 1 SOURCE: McKinsey analysis Based on financials of 256 leading US companies across 7 sectors (discretionary, staples, energy, healthcare, industrials, technology and materials)

26. The Transition From Sales to Account Management • Leverage the company's enterprise resources and capabilities • Your services are hard to understand • I don’t trust the fine print (How can we simplify?) • It’s difficult to reach a real person…at my convenience (Can we build easily accessible expertise online/phone) Example: A Text Book Company • Are you cutting costs at my expense? “Phone option hell” • I believe you’re more interested in increasing profits than my problems (What part of satisfaction is based on customer longevity?) • Create and fulfill value-based solutions … to meet both the customer's and your objectives and expectations, as well as future potential • How far will you go to protect my interests? • AMEX (a personal story) • How forgiving are you of my mistakes and do you help me prevent them? • AT&T international assistance

27. Executive Summary (cont.) • The primary role of the salesperson has evolved • From day-to-day “transaction” manager or specialized technical support or customer service to “business consultant” • As “consultants,” salespeople must • understand their customer’s business, • elevate their point of contact, and • add value to the customer’s business • Unless cost reduction is a primary added value provided, price continues to diminish as the criteria for selecting a vendor

28. These New Roles Move Sales“Beyond a Career to a Profession” • Develop more competence “consulting” • Learn relationship management and develop “currency with the customer” • Build customer market and business “savvy” better than competitors • Partner internally, teamwork within your company to sell your benefits “downstream” • Cultural sensitivity, wearing a global hat • Salespeople delivering personal added value The role of the salesperson will change … Require position expertise … Manage a total service (“it ain’t about product any more”) … Penetrate existing customers … Expand share versus expand market John Muth Chairman AMSAN “… Manage the relationship with the customer, not execute various action steps … May require up to 18 months to develop … Process-oriented and strategic not just short-term” Nick Georgis, Senior VP, Schwab Institutional

29. The Bottom Line From the Customers' Point of View It’s all about the Account Management – Period! World Class status requires: Integrating your Organization’s needs with the Customer’s needs • For your customer • Accepting three basic responsibilities • Managing four commitments to customers • For your company • Developing and sustaining a long-term strategic customer relationship for mutual growth, profitability, trust, loyalty, and innovation • Developing the five, core SAM competencies

30. The New Professional Sales Imperative! Unlocking the Science of Sales To Source, Develop and MOTIVATE Top Salespeople Move Beyond Personal Experience to the Actuarial Business Processes of Other “C” Suite Functions Where Do We Go Next? A Change in Mind Set

31. The Best Practices of World Class Sales Forces: Achieving The Professional Sales Standards in Growing Business Adopting a “Customer-Driven Attitude” Identifying & selecting the right Account(s) Training & developing the Right Skills Implementing formal processes Utilizing enabling information technology for the salesperson Interacting with and integrating other functional professionals

32. The Most Common Mistake Expecting a Hunter to Farm:Contest 5 The impact of “right person…into wrong specialty” How many “Hunters” successfully transitioned to Account Managers (A.M.s)? Score 6 points if you were correct

33. A Universal Approach That You Can Influence How is the customer seen by their customers? Selling to Sun Oil Objectives Strengths Weaknesses In their business environment Opportunities Can you help them match Strengths to Opportunities? Can you help them Overcome Weaknesses? Marriott Pepsi Threats Can you help them overcome threats? Can you help them to avoid their biggest risks? DuPont Exxon

34. A Look Into The Future • Traditional sales is diminishing. Replaced increasingly by Inside Sales • The rate of innovation drives a faster product life cycle from introduction to commodity • Strategic Account Managers will set the standard for all B-B relationships • With an in depth understanding of their market segment, • its technology and market strategy , PLUS • exceptional skills as “out-sourced managers” for their customers • The future will evolve to a professional level status with college preparation (providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.)

35. A Look Into The Future • With Professional Inside Sales, customer facing positions will bifurcate to: • High end “more sophisticated consultative” strategic sales teams, and • More highly educated telesales (with dedicated accounts) FUTURE PAST SAMs & Specialized teams SAMs & Specialized teams Road Warriors Telesales Road Warriors Telesales

36. These Sales People are Specialized

37. Which Will Be Our Major Focuses?

38. How To Manage That Sales Force Complexity? A Sales Force Talent Audit can: Inventory your entire Sales resources Identify who needs training • And what training they need Identify which people are in the wrong job Identify the best people for a new role Identify the best (and worst) candidates for promotion

39. Sales Force Talent Audit Can include as many people across as many skills or positions that are considered critical to manage Any Position can be expanded to analyze individual skills in depth

40. The Results Example: Applying Data Driven TQSalesM The Traditional Approach to Sales “Benchmarking” ABC Company: 200 Salespeople and $200M in Sales* $6 Million $150K/person $90 Million $750K/person $104 Million $2.6M/person = $200 Million Total Sales Consultant Speak: Study the techniques of the top 20% and train the middle 60% *Performance averages based on over 900 sales forces evaluated by Chally over 38 years

41. The Results ABC Company: 200 Salespeople and $200M in Sales* = $204.5 Million Total Sales = $200 Million Total Sales $6 Million $150K/person $104 Million $2.6M/person $94.5 Million $90 Million $750K/person Improving their performance by an exceptional 5% each… only produces a 2.25% improvement in sales

42. The Results Applying TQSalesM to Selection & Alignment Produces Dramatic Improvement ABC Company: 200 Salespeople and $200M in Sales* $6 Million $150K/person $104 Million = $223.7 Million Total Sales = $218 Million Total Sales $119.7 Million $114 Million $90 Million $104 Million $4M/person = $200 Million Total Sales If we now train the rest of the sales force and get a 5% gain, we get an additional $5.7 Million Reassigning or replacing the bottom 20% with just “average” competency levels Will increase production by a minimum of 9%

43. Summary Customers care less about salespeople (with “traditionally trained sales skills”) than Specialized Competencies: • With good management skills (“manage this outsourced part of my business”) • Who Understand their business (“how will you help me make money?”) • Are effective at customer advocacy (“Access and manage your company’s best resources to give me excellent service”) • Are able to diagnose and design solutions (Be Both Analyst & Implementer) • Are accessible: (“be available when I need you”), and • Are innovative problem solvers (“If I could fix it myself I would have”) *Achieve Sales Excellence, and The 2007 Customer Selected World Class Sales Research Report

44. Universities and Colleges Now Teach Sales • The Sales Education Foundation Supports over 70 Universities with sales programs • The Produce over 2000 graduates a year • A clip from an Emmy winning Television Special on Sales Education

45. To Learn More http://www.salesfoundation.org/

46. So That Everybody Wins!!!! All it takes is your business card!

47. Good Luck, And Thank You For Your Kind Attention