Identifying and Prioritizing Stakeholder Needs in Key Customer Accounts

The importance of relationship management in maintaining key customer accounts is emphasized in the assignment content. Monitoring and control are essential components of this process, as it ensures that all requirements and procedures related to key customer accounts are being met effectively. The organization can adopt modern techniques such as Customer Relationship Management (CRM) for monitoring and controlling these activities. Feedback from both formal and informal sources is crucial in analyzing information obtained during monitoring and control. Techniques such as the Marketing Information System (MKIS) can be used to analyze this data. Identifying key strengths, weaknesses, and areas for improvement in the relationship between the company and its key accounts is also critical.

Running Head: Sales Management
Relationship Management for Account Managers

Sales Management
Table of Contents
Assessment criteria:...................................................................................................................2
1.1 Explain what information is needed about the account and competitors.........................2
1.2 Describe how to build trust with accounts.......................................................................5
1.3 Explain how to provide expertise to improve the productivity of the account................5
1.4 Explain how to reduce the account’s financial burden....................................................5
1.5 Explain how to improve the quality of service provision................................................6
1.6 Describe how to maintain account loyalty to own organisation......................................6
2.1 Evaluate methods for developing a personal network of contacts to meet current and
future needs for information, resources and...........................................................................7
sales opportunities..................................................................................................................7
2.2 Explain the importance of reciprocity and confidentiality in networking.......................8
2.3 Evaluate methods for maintaining communication with contacts in personal network...8
3.1 Evaluate methods for researching prospective customer organisations suitable for
consultative selling.................................................................................................................8
3.2 Evaluate methods for establishing rapport and own credentials with customer
organisation............................................................................................................................9
3.3 Evaluate strategic questions to identify issues in the customer organisation which........9
represent sales opportunities..................................................................................................9
3.4 Quantify in financial and strategic terms the effects of the most important issue or.......9
opportunity.............................................................................................................................9
3.5 Evaluate solutions for the customer organisation issue.................................................10
4.1 Describe the importance of and the need for stakeholder analysis................................10
4.2 Describe how to identify and analyse the needs and concerns of different stakeholders
..............................................................................................................................................11
5.1 Evaluate the concept of monitoring and control in maintaining relationship
management activities..........................................................................................................11
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5.2 Evaluate own organisation’s requirements relating to monitoring and control activities
..............................................................................................................................................11
5.3 Evaluate methods of formal and informal feedback for monitoring of key customer
activities...............................................................................................................................12
5.4 Identify and evaluate techniques to be used to analyse information obtained during
monitoring and control.........................................................................................................12
5.5 Identify key strengths and weaknesses of the relationship and areas for improvement 12
References................................................................................................................................13
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Assessment criteria:
1.1 Explain what information is needed about the account
and competitors
Account managers need to gather several information related to the existing key accounts or
key customers and the prospective ones from future. The account managers need to conduct
evaluation of the potential customers and also the existing ones through review of the
accounts from time to time for finding out the last few transactions with the customers. As for
example, the account managers in the sales or marketing department should first undertake
segmentation of the potential customers and also engage in the evaluation of the existing
customers and suppliers for identifying the strengths and weaknesses of the particular
customer account against the other competing customers and suppliers (Hüttinger, Schiele, &
Veldman, 2015). This enables the organisation with the ability to select the most potential
customers that will be the source of the maximum possible revenue and profitability for the
firm. The analysis of the different customers and suppliers is done with the help of a three-
stage model known as Account Identification and Selection Matrix (AISM). The three stages
of customer and supplier analysis are as follows:
 Customer Attractiveness Factors (CAF).
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 Relative Strength Factors (RSF).
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 Account Identification and Selection Matrix (AISM).
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1.2 Describe how to build trust with accounts
Building mutual trust with the key accounts is one of the recipes for success of the
organisation and the account manager also. Trust is a process that builds slowly over years of
receiving effective and committed services by the organisation. This can be achieved if the
business offers high quality of products and services to the customers on a regular basis and
is always dedicated to solve the issues and queries of the customers on time. This enhances
the customers’ confidence on the company and they become brand loyal customers or key
accounts for the company. In respect of the suppliers, the same trust factor should be
developed such that the suppliers are assured of the timely payments from the organization
during all times. They have the possibility to become the trusted suppliers of the key accounts
for the company also (Kapta, 2018).
1.3 Explain how to provide expertise to improve the
productivity of the account
The productivity of the key accounts or key customers and the key suppliers can be ensured
by the company if it can provide the desired level of commitment and expertise to them
through staying true to their promises and commitment in terms of the quality, price and
timely delivery of the products to the customers. In respect of suppliers, expertise can be
offered through advises to them regarding improving quality of their products and services
and suggesting them ethical and good business practices. If the key accounts receive these
continued services and support from the company, they will remain productive by engaging
in continuous business deals with the company or else the key accounts might stop being
productive to the company (Ryals, 2012).
1.4 Explain how to reduce the account’s financial burden
The financial burden behind the key accounts should be optimised by the account manager
regularly to ensure that there is no wastage of costs behind the key accounts. The account
manager must be aware of such accounts that enhance the cost to the company in a way that
is unsolicited. The cost reduction can be achieved through effective monitoring and prudent
planning of the accounts. Monitoring facilitates identification of the areas of costs in respect
of such accounts. In order to achieve successful relationship building, the account manager
needs to be diligent and sincere in determining the areas where the services can be improved,
and the costs can be minimized. Financial burden from the accounts can be reduced through
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implementing modern technology, investing effectively in the process and ensuring accuracy
in the product and service offers that can be implemented through the following techniques:
 Arrangements for credit
 Adhering to the agreed terms and conditions such as payments and instalments.
 The multiple key accounts that are increasing the cost to the company can be
consolidated into a loan and this will facilitate the reduction in total costs.
 The key account manager should observe the established payment policies of the
organisation before making additional arrangements of reducing costs, as the
company might be following some other modes and methods of payment (Money
Watch, 2007).
1.5 Explain how to improve the quality of service provision
Enhancing the service quality perception of the customers is one of the key objectives for an
account manager. This can be achieved through the adoption of effective quality control and
management techniques within the firm for handling the key accounts. Continuous
improvement is one of the preferred methods for enhancing the quality of the services to the
key customers or key suppliers. The SERVQUAL model can be utilised for the purpose. It
measures the differences between the expected service quality and the perceived service
quality of the customers after receiving the services. The model implements questionnaires
based on seven-point Likert scale to determine the customer satisfaction level (Gounaris &
Tzempelikos, 2016).
1.6 Describe how to maintain account loyalty to own
organisation
The account manager needs to ensure that the key accounts remain loyal to the company for
long such that they can become the core business generators for the business from which the
company will get further references of prospective customers. Therefore, the account
manager’s responsibility is to maintain the quality of the services to the customers in such
ways that they remain loyal and trusted to the company. Thus, one of the most effective ways
of ensuring increased and sustained customer loyalty is the improvement and enhancement of
customer services. The account manager must be sensitive towards the needs, tastes and
preferences of the key accounts and should strategize the business plans on that basis for
ensuring that the customers remain friendly and dedicated towards the company (Chapman,
Lawson, & Scheitlin, 2017).
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2.1 Evaluate methods for developing a personal network of
contacts to meet current and future needs for information,
resources and
sales opportunities
Developing personal networks of contacts is one of the major functions of a key account
manager. It helps to ensure continuity of the business activities and enhancing the database of
the customers. Hence, the key account manager should implement an effective strategy to jot
down all the important points of references and contacts that he has from his entire
professional career that can be approached for future business opportunities. A business can
never grow and sustain without enhancing the networks or contacts. The key account
manager can develop a networking plan that consists of details of several types of contact that
can be considered for future business activities.
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2.2 Explain the importance of reciprocity and confidentiality
in networking
While networking is one of the major ways of ensuring growth and development of the
business through enhancing the customer base, it should have adequate reciprocity and
confidentiality from both the parties such as the company and the prospective customers. It
entails that the key account manager must deliver the best practices to the networks and at the
same time the contacts should reciprocate positively in order to be considered as future
prospects of the business. The confidentiality aspect explains that both the company and the
contacts or networks of future customers should respect each other’s confidentiality and
should not indulge in any act that is unethical (Richardson, 2018).
2.3 Evaluate methods for maintaining communication with
contacts in personal network
The account manager should be in touch with his contacts in the network frequently in order
to ensure that there is no gap in the communication between them. The account manager
might call up some of the key customers from the previous employers and warm up with
them and re-establish the rapport once again. This can be done by calling up these previous
customers and asking about their health and life. The account manager can call them up
personally or even visit their offices or residences for a friendly session that will facilitate the
bridging of the gap that has occurred due to discontinuation of services from the previous
employer. It will facilitate in rejuvenating the relationship between the account manager and
the old contacts.
3.1 Evaluate methods for researching prospective customer
organisations suitable for consultative selling
The consultative selling process can be undertaken by implementing the approach of market
segmentation at first. The segmentation will lead to the determination of the customer
organisations with which business dealings can be conducted. The brand positioning is to be
undertaken thereafter in a way that will help the organisation in reaching out to the
prospective target customer organisations in the market. Having an effective Customer
Relationship Management (CRM) strategy will lead to analysing the current customer
organisations that are engaged in business activities with the company. This will provide
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valuable information regarding the major attributes of the company that are currently in
business and this will help to develop the future strategies.
3.2 Evaluate methods for establishing rapport and own
credentials with customer organisation
The customer organization will have to be convinced about the capabilities and skills of the
account manager and hence it is essential for the key account manager to establish his
credentials, knowledge and skills before the client organization such that the client
organization is impressed by the manager and his confidence and skills. Rapport can be built
if the account manager has the qualities of being empathetic, having efficient communication
skills, convincing power, knowledge of the product, service and industry and most
importantly a strong and charismatic personality that will immediately attract the
representative from the customer organization. The manager can also show evidence of his
previous performance and acknowledgements that he has received from the company due to
performance. The other important material is the performance review of the company since
the last 1 year in terms of its market share, revenues, profitability and customer testimonials.
3.3 Evaluate strategic questions to identify issues in the
customer organisation which
represent sales opportunities
The account manager should demonstrate effective managerial and marketing skills when he
is interacting with the representatives from the customer organization. He should prudently
and smartly put forward some questions that would reflect the business and sales
opportunities with the customer organization. These questions can be asked in the form of an
interview whereby the account manager first needs to undertake a friendly and warm
approach in order to develop the foundation for a fruitful conversation with the company
representatives that will help him to analyse the opportunities or lack thereof for carrying out
business relationships with that particular customer organization.
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3.4 Quantify in financial and strategic terms the effects of
the most important issue or
opportunity
The account manager needs to forecast the future opportunities and barriers that could impact
the flow of the business from the key account organization. The major areas of consideration
are the future cash inflows and outflows that will help the manager in understanding the
worth of the key account. If it is analysed that the cash inflows are not substantial to generate
the desired level of profitability, then the investments behind such key accounts should not be
continued or else it will create a financial burden on the business. The ROI analysis is another
key procedure to determine the worth of the key accounts and in the key account
management planning, it is essential to determine the long-term value of the account.
3.5 Evaluate solutions for the customer organisation issue
The account manager has the responsibility to evaluate the issues related to the several
customer organizations such that they are able to determine the issues with each of the
customer organizations that need to be considered for deciding the future of business
relationships with them. There is the need for assessing the cost and benefit in relation to
each of the solutions such that the best and the most economical solution can be formulated.
The account manager needs to consider the tangible outcomes such as financial issues and the
intangible outcomes such as the strategic issues that are associated with offering the plausible
solutions to the customer organisations.
4.1 Describe the importance of and the need for stakeholder
analysis
The account manager needs to conduct the stakeholder analysis for evaluating the interests,
preferences, expectations and power of all the stakeholders involved in the sale of the product
or service. There are several good reasons for conducting stakeholder analysis such as
follows:
 Determining the priorities of the stakeholders and undertaking necessary approaches
to take care of those.
 For ensuring success in business activities, there needs to be development of effective
communication strategies with all the stakeholders.
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 The changing attitudes of the stakeholders towards the business can be determined
with the help of a stakeholder analysis.
 The management can understand the relative importance of the stakeholders in terms
of whether the importance of certain stakeholders are increasing or decreasing.
4.2 Describe how to identify and analyse the needs and
concerns of different stakeholders
Different stakeholders have diversified needs within a business concern and the account
manager needs to understand the needs of the key stakeholders associated with each of the
key customer accounts. The power of the different stakeholders varies, and the company
prioritizes on the needs of the ones that are the most powerful. The diversified stakeholder
needs and concerns can be identified and analysed with the help of effective stakeholder
mapping.
5.1 Evaluate the concept of monitoring and control in
maintaining relationship management activities
The relationship building with the customers is one of the major objectives for an
organisation and its key account managers. The organization can adopt the modern
techniques of Customer Relationship Management (CRM) for the purpose of achieving
monitoring and control over the key accounts of the customers or the customer organisations.
Monitoring refers to evaluating whether all the requirements and procedures related to all the
key customer accounts are being conducted effectively. Controlling consists of the strategies
that are undertaken by the key account manager for the purpose of making sure that all the
actions related to each of key accounts are being performed as per the norms and if not then
the corrective actions must be undertaken fast such that the key accounts are not
compromised.
5.2 Evaluate own organisation’s requirements relating to
monitoring and control activities
The norms in the organisation related to monitoring and control of the key accounts instruct
the key account managers to systematically keep track of the individual requirements of the
key customers and the customer organisations. The account manager will have to regularly
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keep track of the status of the key accounts and maintain records. The management might
want to review such recordings at any time and the account manager will have to furnish his
details. It helps the management to determine the efficiency of the key account managers in
terms of their effectiveness in handling key customer accounts.
5.3 Evaluate methods of formal and informal feedback for
monitoring of key customer activities
The formal methods of gathering feedbacks from the key customers can be the frequent
meetings with them, interviews or surveys with the key customers and various methods of
formal complaints. Informal feedbacks are often offered by the key account customers to an
employee dealing with the account of the customer and not the key account manager itself.
5.4 Identify and evaluate techniques to be used to analyse
information obtained during monitoring and control
The key account manager can use some of the modern techniques such as the implementation
of the Marketing Information System (MKIS) that is a highly innovative electronic system. It
is a computerised method that connects and maintains an information database for all the data
related to the customers, key accounts and the stakeholders that can be accessed and retrieved
whenever necessary by the account manager. Apart from this, regular review meetings with
the persons in charge of the key accounts is another policy for obtaining information on
monitoring and control of key accounts.
5.5 Identify key strengths and weaknesses of the
relationship and areas for improvement
The major strengths and weaknesses of the relationship between the company and the key
accounts can be identified with the help of gathering feedbacks and information monitoring.
Apart from this, SWOT analysis can also be conducted for identifying the various factors
related to the key accounts depending on which the future strategies will be undertaken
regarding the key accounts of the business.
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References
Chapman, B., Lawson, R., & Scheitlin, M. (2017). Five Challenges to Building a Successful
key Account Management Team- and How to Overcome Them. Sales & Marketing
Insights, 1-10.
Gounaris, S., & Tzempelikos, N. (2016). Relational key account management: Building key
account management effectiveness through structural reformations and relationship
management skills. Industrial Marketing Management; Volume 43, Issue 7,, 1110-
1123.
Hüttinger, L., Schiele, H., & Veldman, J. (2015). The drivers of customer attractiveness,
supplier satisfaction and preferred customer status: A literature review. Industrial
Marketing Management; 41(8), 1194-1205.
Kapta. (2018). How to Build Deeper Customer Relationships with Key Account Management
. Retrieved from https://kapta.com/key-account-management/build-deeper-customer-
relationships-key-account-management/
Money Watch. (2007). Improving Relationships with Key Accounts. Retrieved from
https://www.cbsnews.com/news/improving-relationships-with-key-accounts/
Richardson. (2018). Account Management & Sales Strategy. Retrieved from
https://www.richardson.com/sales-resources/strategic-sales-key-account-
management-strategy/
Ryals, L. (2012). How to Succeed at Key Account Management. Retrieved from
https://hbr.org/2012/07/how-to-succeed-at-key-account
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