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Casual Articles - National Accounts -- How Do You Create a Program That Really Works?
Regularly, I purchase about 18 ounces of a decent French Roast coffee at a specialty retailer for about $11.By comparison, 12 ounces of French Roast at Starbucks or Peet’s will set me back approximately the amount, so they’re 50% more costly, right?That’s how it appears, but I’ve been doing informal measurements and I can tell you they seem to cost exactly the same amount, given the actual quantity of drinkable brew that they yield.I can use one-third less of Starbucks or Peet’s coffees and get a rich taste, but I need at least a third, and sometimes double the amount of the specialty retailer’s stuff to get a strong brew.This shouldn’t be that much of a surprise, when you think about it.Go into an average restaurant and order a cup of Joe. Typically, it will be very watery and only thinly reminiscent of what you’ll make at home.How come?Most restaurants use: (1) Only a commercial grade of coffee; and (2) They use too little of that for each pot they brew.Coffee is one of the most profitable items on restaurant menus, and I suppose some think if they can skimp here, they can keep the rest of their food prices in line.If you prefer the taste of Starbucks or Peet’s there’s no reason to deny yourself.You’ll pay about the same for their products as you will for that which you’ll get at a specialty grocery store under its house label.I suggest you compare for yourself to see if the brand name wins!
2. Understanding - Research the business environment in which your company operates and the resulting defined objectives for a national accounts program.
3. Clarity - Identify the big picture of market and customer demand and direction. This should be a true understanding of what your corporation is trying to accomplish in total.
4. Commitment - Secure the commitment of your entire company.
Knowledge
It is essential to outline the objectives of your program, the process involved, and the direction to take in order to receive help and support when necessary. If you have no
There are two main types of communication that take place in selling situations: conflict and cooperation. Which type of communication you’re using will have a profound impact on whether or not you get the sale.Conflict takes place as the result of the vast majority of sales processes and especially as the result of those taught in traditional sales training, which usually goes as follows: The salesperson initiates the sales process through a cold call. Because the prospect does not expect or anticipate the call, sales resistance automatically exists and the salesperson is forced to overcome it. This is conflict. When the first appointment takes place, the prospect again has his defenses up in anticipation of a pushy sales pitch. As a result, frivolous objections are thrown out that the salesperson must overcome. More conflict. At the end of the appointment, the salesperson must secure a time for a second appointment in order to present a proposal. The prospect says to call next week for a time, but the salesperson wants to secure it now. Even more conflict. The second appointment takes place, the proposal is presented, the salesperson asks for the order, and now the prospect really has objections. Conflict. The salesperson works to overcome them and then uses a sleazy technique such as the infamous alternate close to again ask for the order. Conflict at its worst.Now let’s take a look at a sale where the state of mind is not conflict but cooperation:The prospect learns of the salesperson’s offering through the salesperson’s thoughtful, organized self-marketing plan. The prospect contacts the salesperson and asks for a meeting, to which the salesperson of course agrees. Cooperation. During the first appointment, the prospect willingly explains the need that exists and the salesperson listens and takes down all pertinent information. They mutually agree to a time to review a solution. Cooperation. The day for the proposal appointment arrives and the prospect is excited to finally learn of a way to solve his problem. The sa
Regain Power by Offering Competitive Advantage
National accounts, by definition, have significant size and buying power which provide leverage in demanding lower prices. In addition, because of their complexity and demographics, they are often more difficult and expensive to service. Consequently, most national accounts are the least profitable.
In response, you need to make a concentrated effort to effectively rebalance the shift of power by offering significant competitive advantages that make your products and services more critical to your national accounts. Without creating competitive advantage, you will be tied to the downward price spiral that eats margin and effectively negates any understanding by your customers that "price is not the same as cost." A structured national accounts program with definitive guidelines is the first step toward gaining competitive advantage. There are four basic broad categories of added value that create competitive advantage:
1. Processes that streamline your customers' productivity, improve quality, take transaction costs out of the supply chain and provide measurable savings (unrelated to price).
2. Administrative and technical support that can reduce your customers' internal costs enough to affect bottom line operating costs.
3. Sales and marketing support that can increase your customers' top line.
4. Technology that is core to your customers' business results, yet is beyond their internal capabilities. Your national accounts program should refocus your efforts on all of these issues.
Four Fundamentals
The ultimate success of a national accounts program depends on the hard work and team participation of all company employees involved in the process. There are four basic fundamentals of success in any national accounts program:
1. Knowledge - Study the internal processes of your company and/or the internal workings of your national accounts program if you already have one in place.
2. Understanding - Research the business environment in which your company operates and the resulting defined objectives for a national accounts program.
3. Clarity - Identify the big picture of market and customer demand and direction. This should be a true understanding of what your corporation is trying to accomplish in total.
4. Commitment - Secure the commitment of your entire company.
Knowledge
It is essential to outline the objectives of your program, the process involved, and the direction to take in order to receive help and support when necessary. If you have no
If you’re like most small business owners you are running a mile a minute and someone says ‘planning’ to you and you’re sure they don’t know what they’re talking about. Right? You don’t have time for all that fluff. You’re a busy person … and of course you are. But if you want your business to perform better then you better read on.As the owner of your own small business you are ‘it’. You want it to grow beyond you and eventually be self sufficient and give you the life you dream about. Then you better find ways to be more productive and here are a few.1. Write down clear goals: What do you want to accomplish … in your life and your business. They must be clear, specific and have a time limit. Be honest with yourself. Where are you right now; and where are you going? If you don’t know … who does?2. Write a clear plan of action to get you there: You know in one above where you are going, what specific steps will get you there? You’ll make adjustments along the way but outline the big steps then the little ones and do it daily.3. Now prioritize: Once you know where you’re going and the steps you’ll take you can then establish priorities of what needs to be done when. Simple to understand and difficult to do everyday.4. Focus: Once you’ve accomplished steps one through three above it’s up to you to have the courage and discipline to make it happen. The key to your better future is you. Make sure your habits match your dreams.5. Your work and skills should match: You have a set of skills and the business may require some you don’t have. Make sure you play to your strengths and hire for your weakness.6. Delegate: Now you’ve heard that before but trust your people, after hiring right and training and coaching – delegate and step back. Ask for and demand results but don’t dictate methods.7. Use a process: Use a planner, a to do list, a computer program, use something to keep track of your goals, make adjustments and jump back in again in the morning. I have found it doesn’t matter what tool or method you use, use what works for you. It’s that simple.8. Use
Regain Power by Offering Competitive Advantage
National accounts, by definition, have significant size and buying power which provide leverage in demanding lower prices. In addition, because of their complexity and demographics, they are often more difficult and expensive to service. Consequently, most national accounts are the least profitable.
In response, you need to make a concentrated effort to effectively rebalance the shift of power by offering significant competitive advantages that make your products and services more critical to your national accounts. Without creating competitive advantage, you will be tied to the downward price spiral that eats margin and effectively negates any understanding by your customers that "price is not the same as cost." A structured national accounts program with definitive guidelines is the first step toward gaining competitive advantage. There are four basic broad categories of added value that create competitive advantage:
1. Processes that streamline your customers' productivity, improve quality, take transaction costs out of the supply chain and provide measurable savings (unrelated to price).
2. Administrative and technical support that can reduce your customers' internal costs enough to affect bottom line operating costs.
3. Sales and marketing support that can increase your customers' top line.
4. Technology that is core to your customers' business results, yet is beyond their internal capabilities. Your national accounts program should refocus your efforts on all of these issues.
Four Fundamentals
The ultimate success of a national accounts program depends on the hard work and team participation of all company employees involved in the process. There are four basic fundamentals of success in any national accounts program:
1. Knowledge - Study the internal processes of your company and/or the internal workings of your national accounts program if you already have one in place.
2. Understanding - Research the business environment in which your company operates and the resulting defined objectives for a national accounts program.
3. Clarity - Identify the big picture of market and customer demand and direction. This should be a true understanding of what your corporation is trying to accomplish in total.
4. Commitment - Secure the commitment of your entire company.
Knowledge
It is essential to outline the objectives of your program, the process involved, and the direction to take in order to receive help and support when necessary. If you have no
I called Domino’s Pizza the other night as I was watching the USC-Notre Dame game on the tube.Expecting to get exactly what I had purchased twice during the past three weeks, I quickly dialed the phone and recited my order:“I’ll have the three medium pizzas with unlimited ingredients. Here’s how I’d like them. Two with triple mushrooms, and one with double pepperoni, and a single serving of mushrooms, onion, and beef, please.”“We can’t do that,” the voice responded flatly.“Why, not?” I shot back. “What’s the problem?”“You can’t double one ingredient. They have to be different ingredients,” he claimed.“You must be in MANAGEMENT, am I right?” I challenged, knowing only a dumb bureaucrat could enforce such a senseless rule.He went on to inform me that my last two orders were placed with front line employee rule breakers who “Shouldn’t have done that.”I tried to reason with him, pointing out that if I put ten different ingredients on a pizza, which I understood he’d permit, this would cost his enterprise far more than a triple dollop of mushrooms or double pepperoni.He wouldn’t bite, even after I said I’d call Pizza Hut and award them my business.“Mistakes” that customer love, providing they don’t break the bank, are glorious entrepreneurial opportunities.I believe it was a customer who made the imaginative suggestion to the druggist who concocted Coca-Cola.He asked this revolutionary question: “Why don’t you bottle it?”If doubling the ingredients on a pizza can make people buy more of them, isn’t this a blessing?
1. Processes that streamline your customers' productivity, improve quality, take transaction costs out of the supply chain and provide measurable savings (unrelated to price).
2. Administrative and technical support that can reduce your customers' internal costs enough to affect bottom line operating costs.
3. Sales and marketing support that can increase your customers' top line.
4. Technology that is core to your customers' business results, yet is beyond their internal capabilities. Your national accounts program should refocus your efforts on all of these issues.
Four Fundamentals
The ultimate success of a national accounts program depends on the hard work and team participation of all company employees involved in the process. There are four basic fundamentals of success in any national accounts program:
1. Knowledge - Study the internal processes of your company and/or the internal workings of your national accounts program if you already have one in place.
2. Understanding - Research the business environment in which your company operates and the resulting defined objectives for a national accounts program.
3. Clarity - Identify the big picture of market and customer demand and direction. This should be a true understanding of what your corporation is trying to accomplish in total.
4. Commitment - Secure the commitment of your entire company.
Knowledge
It is essential to outline the objectives of your program, the process involved, and the direction to take in order to receive help and support when necessary. If you have no
Your marketing weak link could be undermining the rest of your marketing. It is vital that each link in your marketing system supports and builds upon the previous link. Each link must bring your customer closer to the next sale. Any link that takes the customer further away from the sale, makes your marketing program inefficient and causes you to lose money.There are many areas where the system can break down and cause expensive waste of potential. For example, I see many retailers who invest enormous amounts on advertising to bring customers into their store, only to lose potential sales through poorly trained sales people who don’t know how to help people buy what they want. There are many examples of businesses advertising discount prices to attract customers because they haven’t worked out how to be different from the competition. As a consequence, they only attract price sensitive shoppers who squeeze down prices and margins as low as possible. I frequently experience poor service in restaurants and cafes which puts me, and others, off returning to those establishments. All these weak links undermine the marketing effort and reduce sales and profits.These examples of weak links in marketing are not only evident in small businesses. As an example, I recently experienced the results of some weak link marketing at the hands of a large international telecommunications company. Late last year I had taken up an offer from this company to use them for toll calls at a capped rate of a maximum of one dollar per call anytime to anywhere in New Zealand. This offer was due to end on 28th February. At the time, the telemarketing person did not know what would happen then, but as I make quite a few toll calls I took advantage of the offer. What happened on 28th February? Did I hear from the telecommunications company? No, nothing. If I just left things my toll calls would be charged at the full rate. What did I do? I opted to change back to the national company where I could have capped calls and pay a fixed monthly fee for favourite place calls to Auckland. About two weeks later, I had
3. Sales and marketing support that can increase your customers' top line.
4. Technology that is core to your customers' business results, yet is beyond their internal capabilities. Your national accounts program should refocus your efforts on all of these issues.
Four Fundamentals
The ultimate success of a national accounts program depends on the hard work and team participation of all company employees involved in the process. There are four basic fundamentals of success in any national accounts program:
1. Knowledge - Study the internal processes of your company and/or the internal workings of your national accounts program if you already have one in place.
2. Understanding - Research the business environment in which your company operates and the resulting defined objectives for a national accounts program.
3. Clarity - Identify the big picture of market and customer demand and direction. This should be a true understanding of what your corporation is trying to accomplish in total.
4. Commitment - Secure the commitment of your entire company.
Knowledge
It is essential to outline the objectives of your program, the process involved, and the direction to take in order to receive help and support when necessary. If you have no
Traditional marketing strategies encourage business owners to continually grow their businesses by adding new customers. In today's competitive world of business, it is more important than ever to aim for more transactions with existing customers by using the power of customer follow-up and attention to good service.These second ten tips will help you in turning your existing customers into walking billboards for your business and loyal customers for a lifetime. While we aren't advocating that you do all ten, choosing your favorite five and making sure they become a part of your marketing efforts will pay off handsomely.11. Conduct surveys one time per month in order to find out what your clients want and need. Your ability to deliver solutions to current problems will position you as a coach who is solution oriented and who is willing to be flexible to deliver what it is that the client most wants and needs. An online survey tool such as www.zoomerang.com is a fantastic tool for providing online surveys to your current customers and clients.12. Support your clients by attending their events and by sending them referrals. Are your clients leading a workshop or a teleclass? Are they holding a special "grand opening" or announcing a new product or service? Will your client be playing the piano for a special event or helping with a charity auction? Find out what special events are in the future for your client and attend those events with enthusiasm. This one perk will let your clients know that you are committed to them through and through. In addition, become a walking billboard for your clients, telling others about their products or services, and send them referrals on a regular basis. The building of a strong relationship and strategic alliance begins with you, so let your support be known by "showing up" and "talking your client up to others." If you cannot attend the event, contact the client on the day of their big event, wishing them well and letting them know how much you wish you could attend.13. Set aside
2. Understanding - Research the business environment in which your company operates and the resulting defined objectives for a national accounts program.
3. Clarity - Identify the big picture of market and customer demand and direction. This should be a true understanding of what your corporation is trying to accomplish in total.
4. Commitment - Secure the commitment of your entire company.
Knowledge
It is essential to outline the objectives of your program, the process involved, and the direction to take in order to receive help and support when necessary. If you have no program in effect, it is critical to develop this process.
Second, activity measurement and open communication (both up and down the chain of command) are absolutely critical for success. Accountability is an absolute necessity and it must be clearly defined. Support from your company's information management system can provide the fundamental elements of success for the national accounts program. A weak information system could leave dangerous voids or even misrepresent the true picture of the national accounts program.
Understanding
Understanding brings the field view (external view) closer to corporate headquarters. An internal company survey may provide the necessary clarity as to how a national accounts program is perceived. Input from local account representatives and branch managers is very important. Your company needs to explore how things are being done and how an existing program is perceived. Most importantly, input from the field with recommendations is essential. If you currently have no program, the survey is even more critical to the initial development stage of a new program. Understanding actual needs of the national account is also critical to the success of your program. To get a better understanding, ask the following questions:
• What do national account types really value?
• What motivates our suppliers to negotiate special terms for these accounts?
• Do these accounts view our company as partners?
• What do we know about their business?
• Are we truly the primary source of supply?
• Can we create a win-win situation?
Clarity
Everyone must have a clear understanding of exactly what you are trying to accomplish. Recognizing the volatility of the environment is a valuable piece of the puzzle. Your company needs to catch up to the pace of change within the distribution industry to maintain competitive advantage. Remember, "Perceived value drives expectations" and "Performance value drives customer satisfaction."
Raise your customers' perceived value high enough and you create "competitive advantage" which is the first step towards rebalancing the shift of power inherent in any national accounts program.
While the knowledge aspect of the national accounts program is heavily weighted toward internal perspective, clarity needs to be weighted toward your external environment. You must be clearly aware of market dynamics, including technology and other external forces shaping your particular industry and driving behavior of the national accounts customers. You must evaluate events and trends using an a
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