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Category: SAMA training and certification

SAMA has certified hundreds of strategic account managers through its SAMA Academy training workshops, which we offer year-round in North America and Europe.

SAMA training and certification, Strategic account manager skills and competencies

A higher calling: Putting the work of the SAM into perspective

By Harvey Dunham, Managing Director of Business Development, SAMA

When the holidays approach, and my thoughts drift toward the special circumstance of having three generations of the Dunham family together in one place, I allow myself the occasional indulgence of waxing philosophical. Lately, I’ve been thinking about this question: What is the higher purpose of a strategic account manager?

Is it, as Milton Friedman would surely espouse, simply to create profit for your company’s shareholders? To make rich guys richer, in other words? As someone with a long career in sales — first as a fresh-out-of-the-Coast Guard salesman for Schneider Electric and then later as a district manager, strategic account manager and eventually country president — who is gracefully (I think) approaching retirement, my answer has aged and settled over time. And if you asked me now, “What is the higher purpose of the SAM?” I would say this:

The very best SAMs are entrepreneurs who not only create jobs but quite literally create the future.

Is it hokey? Maybe. But like I said, the holidays put me in a sentimental frame of mind. But I’m thinking about a conversation I had not too long ago with a strategic account manager whose name and company I won’t mention because it’s not nearly as important as the work he’s doing. The context of the conversation was this man’s final review before being conferred the official designation of SAMA Certified Strategic Account Manager (CSAM).

The purpose of the final review (and, indeed, of the CSAM program itself) is to demonstrate that the candidate has not only completed all of his or her coursework but is applying what they have learned to their actual strategic customers. (Lest this turn into a sly advertisement for SAMA certification, I won’t say more.) For his final review, the candidate, who works for a global pharmaceutical company, enumerated four initiatives he is currently working on for his customer, a large institutional customer.

We live in turbulent times, and there are all kinds of reasons – especially for those inclined to look for them – to be cynical. But here is a guy with a crystal clear vision of what he is doing and why he is doing it — to create a better existence for doctors and nurses, for the families of patients and, most importantly, for patients themselves. Here is a guy who is pouring his heart and soul into creating a better future for people who are suffering through the most painful and difficult human experiences.

As I was listening to this exemplary strategic account manager recount how his solution is directly helping patients suffering from cancer, I felt an incredible pride for the work that SAMA does training and educating strategic account managers — who are literally out there making the world a better place.

It got me thinking about my own proudest moments as a strategic account manager. In some ways, it was just another deal — the kind a SAM closes, pats himself on the back for, has a few beers with the team to celebrate and then forgets about because there’s always more work to be done. I’d been brought into reanimate a relationship that had been transactional before it had fallen off a cliff. Long story short, we went from selling a few random products into this giant manufacturer to being the single-source supplier in our category.

Overnight, we went from darkness into light. Like most sales guys with more than a few notches in my belt, I find bragging abhorrent. I only mention this career highlight because it represents the moment I realized that I wasn’t just selling products — I was creating jobs, sometimes hundreds of them, that helped sustain families. All those millions (or even billions) of dollars’ worth of products had to be  loaded into a truck, installed, tested and commissioned — you get the picture.

The SAM job is a difficult one. No doubt about it. If you’re doing it right, you aren’t sitting around waiting for someone to identify a need before springing into action. You’re starting with a blank piece of paper, developing initiatives that create real value for you AND your customer, and then you’re marshaling the resources — internal and external — to bring it all together.

So while being a SAM (or KAM or GAM) is undoubtedly one of the hardest jobs there is, I believe it’s also one of the most rewarding. And that’s why I try to inspire the SAMs I interact with to aspire to be not just good SAMs but great ones. Because great SAMs are actively creating a better tomorrow, one deal at a time!

November 18, 2019Leave a comment
SAMA training and certification, Strategic account manager skills and competencies, Technology, Uncategorized

SAM2Win: An interview with the creator of the online game that teaches strategic and key account management

At SAMA we strive to be innovative in how we deliver value to our customers, and that means experimenting with different formats and media for learning, training and networking. That’s why we have partnered with Edmund Bradford, a former global account manager who is now an author, educator and game designer. He is the managing director of Market2Win and developer of SAM2Win, the world’s first online game that teaches strategic account management.

SAMA Assistant Director of Knowledge & Training Dave Schweizer recently sat down with Edmund to discuss the SAM2Win training/simulation, which SAMA will offer beginning in November. Their interview has been lightly edited and condensed. You can listen to the entire interview here:

Go here to register for the SAM2Win course.

Dave Schweizer: Thank you for joining us, Ed. So what exactly is the SAM2Win program? 

Edmund Bradford: As far as I know, it’s the only game in the world that actually teaches strategic account management, rather than selling. I think the best way to think about it is it’s kind of like a flight simulator for account managers and teams based on over 30 years of research and experience from myself and my colleagues, both practitioners and academics. In the simulation, we have five global companies all competing for the business of one complex global account. Each company typically has about one to five players, who act as the account manager or act as an account team if they’re playing as a team. And the participants or the teams play against each other — not against the computer — with all the fun and irrational behavior that generates from that. And simply, the winner is the company that makes the most profit at the end.

DS: In the simulation, participants can make certain decisions. What kind of decisions can they make, and how do they enter those? 

EB: We pose three big questions to the participants. The first big question is “Where should we compete in the account?” In other words, which sales opportunities are the best for the future?  We want them to be future-oriented in this. So, “Where should we compete in the account?” Sales opportunities, in other words. 

Second question is “How do we beat the competition?” Which, in other words, really means, “How do we craft superior value propositions that fit current and future needs of customers and that will also beat any other competitor offers out there?” 

And finally, the third question that they need to think about is, “When do we want to see the results?” So do we have lots of time in front of us, or do we need some results here in this particular period that will affect the kind of decisions the account makes? So it’s sales opportunities within this account, how to invest to generate the best customer value, share of wallet and profit (both for now and for the future) and how to invest to outsmart the competition. 

We also look at the decisions, and analyze those decisions and provide feedback on how they’re making those decisions. So we give course correction guidance as we go through the simulation.

DS: How are the outcomes of each decision calculated? 

EB: We typically run about five decision rounds in the simulation. When each decision round closes, our software engine compares all the decisions made by the different companies, and the companies that grow the fastest are those that invested most effectively in creating the best value propositions and the best sales opportunities. 

So it’s all about getting your strategy right, getting the tactics right for how you are generating value and making sure that your decisions and your thinking are better than the competition. It looks at all the decisions from all the teams and says, “Who’s making the best decisions from the customer point of view and, therefore, from a customer point of view, where would you place your business?”

DS: Sounds like a very complicated thing to develop. 

EB: I would say probably 10 years of real experience of creating and supporting account programs in companies went into it. Even before we put the software together, there was a lot of research and experience that went into it because we really wanted to get it right. 

DS: That’s very impressive. So what knowledge can the participants expect to gain from the simulation? 

EB: Well, there’s a huge amount, both in terms of knowledge and skills. First, they learn how to apply a good needs-based segmentation to the account. One of the first real wins is for them to go back to their account plans, get back to their strategic account analysis and say to themselves, “How should we divide up this account? Maybe there are cross-division, cross-country needs, which are similar. We just need to find that ‘golden vein’ of needs that run across the whole account.” 

Second, we teach some great tools about how to pick the best sales opportunities for the future. So “Where should we focus our spend effort to generate the best long-term relationship with the account for the future?”

Third, it’s about developing superior value propositions — understanding what value actually means, crafting value propositions that are superior to anything the competitors are providing and making sure that we communicate that to customers. 

Fourth, I think it’s about just getting better strategic customer analysis. For example, in the simulation, there’s a big procurement piece. With our good mutual friend David Atkinson, we’ve put a lot of good thoughts into the simulation around understanding procurement and how to align our account strategy with the procurement strategy — seeing how we’re positioned in the eyes of Procurement, both as a supplier and also in terms of our category of spend.

Those are the big knowledge areas, but I would also say: learning the art of strategic focus. So many account plans have this idea that we’re going to compete everywhere, against all competitors, in all sales opportunities, equally all of the time. And every time there’s an RFP coming up, we’re going to leap on it with all our resources. And the trouble is there’s not enough time to understand what the genuine needs are, and so that leads to shallow value propositions, very poor co-development of value and then stressed, unhappy and dissatisfied customers. 

DS: Fantastic. How much time per week should participants expect to allocate for this program? 

EB: You’re talking really about two days of effort over 16 weeks, and that equates to roughly about one-and-a-half hours per week. So it’s not nothing, but neither is it going to take over your life. 

DS: How else do participants benefit from the simulation? 

EB: Well, I’m glad you asked, Dave. First, it’s about account leadership skills, particularly around strategic thinking and execution. Participants become good at sort of rising above the details to understand the future, to not get buried in all the data. They become basically good at sort of, you know, seeing the companies play, understanding their future, recognizing their company’s place in that future and learning how to get there. So they are proactively aiming their company at a good place in the future rather than being dragged into bad places by the customer or by the competition. 

Second, I think the benefit is that players are free to fail. The simulation allows an opportunity to experiment and take risks in a safe environment. And the nice thing is that no one gets sacked from playing the simulation. You learn from the mistakes and think about how you can apply the lessons learned to real life.

Third, players become very good at thinking about the issues and putting account plans together. 

An unexpected result that I’ve seen: When we get people from different functional backgrounds, we see better alignment because – whether they’re coming from Finance or Logistics or Marketing – playing the simulation, they get a better understanding of what account management is all about. People end up sharing a common language. Some of the best games I’ve seen have been from cross-functional teams from the same organization.

DS: Do you have any tips on how to win?

EB: Do you watch “The Great British Bake Off”? Well, if so, you know Paul Hollywood. He’s asked, “Any final tips before the competitors go out there and bake their cakes?” I’m a little like Paul: I don’t want to give too much away. But I’ll say two things. Number one: Do your homework. Number two: If you’re losing, it’s probably because you’ve misdiagnosed the real problem. I’ll just leave it at that.

Ready to play? Click here to register.

October 28, 2019October 31, 2019Account planning, Creating value propositions, Value analysis and opportunity insightLeave a comment
Industrial goods, SAMA training and certification, Strategic account management process

Once you’re in, you’re in: A SAM-tested process for expediting human interactions to acquire invaluable customer knowledge

By Saleh Al-Ben Saleh, Strategic Account Manager, Emerson

Expediting “inside” knowledge of your strategic account(s) is vital to realizing indisputable value for both you and your customer. Human interactions are invaluable to gaining this knowledge, but issues of location, time and logistics make accelerating these interactions a common challenge for SAMs.

Here I present a tactical approach that covers best practices showing human interactions success for one strategic account site, taking into consideration the following three key metrics likely to contribute to successfully accelerating human interactions (and, thus, inside knowledge) at a selected strategic account site:

  • Interaction time with individual strategic account client(s) during a single day visit
  • Relationships built/strengthened, quality of information gathered, initiatives/opportunities realized
  • The number of potential touches created for future visits 

Before getting started, let’s look at four facts we need to accept in order to understand the value of the approach I call “Once you’re in…you’re in.”

  • Strategic accounts often have multiple scattered facilities, yet you only have eight hours per day to spend on a customer visit. So you should spend that time wisely, and by wisely I mean on valuable client touches.
  • While most clients claim to have open arms to meet and explore business-related issues, the reality is that priority takes precedence, and planning for meetings is a time-consuming task for all parties.
  • Even with a solid agenda, it will be difficult to facilitate several formal meetings on the same day at the same location.
  • Unplanned, stand-up meetings can be just as important as well-prepared meetings — if they are executed in the right way, with the right talking points and objectives in hand.

Putting all the above points into the context of expediting “inside” knowledge of the client, we can agree that SAMs would be wise to leverage any planned customer meeting to generate additional valuable but unplanned meetings during a single customer site visit. Picture yourself jumping from one purposeful interaction to the next, all day long in the same place. This is the main reason I have chosen to call this this approach “Once you’re in…you’re in.”

It’s not that hard. On a typical customer visit, we probably have at least one scheduled meeting of between 30 minutes and two hours, out of a total of seven hours (the typical daily window for meetings). The challenge is to see how much of these seven hours we can use to create human interactions. I propose that the answer is “all of them” – if you prepare well, remain alert and act quickly. 

The following six-step methodology has worked for me in my career as a SAM.

#1. Start with the “T.”   The “T” stands for “them” in the “TUFA” concept, a process for building on your existing target customer profile or creating one if none exists. The “U” stands for us, “F” for fit and “A” for action. Your customer profile should include all information on your history with the customer, including past performance, ongoing initiatives, an organizational chart and a social chart. Make sure to compile a list of all gaps in your customer profile. All this intelligence should be written and organized in a way that will help you drive fruitful conversations with the targeted account clients.  Pro tip: Make sure to use open-ended questions to allow more talking space for your clients. 

#2. One planned meeting to get in. If you are calling on an established customer, start from the end and follow up on a hot topic(s) with your assigned focal point. If it is a new customer, you may need several exploratory meetings to identify the right people with whom to interface. In either case, once you have secured your meeting, you should be able to develop others for mutual benefit.

#3. Jump to the unplanned meeting. Through the profile you have developed in step one, and/or through your scheduled meeting(s) from step two, updates, initiatives and challenges will present themselves to you in one form or another. Whenever possible, seek to learn the champions of these items and ask to meet them while you are onsite. Most likely, you will be able to track them down for short, fruitful, stand-up meetings. Repeat this as many times as your schedule allows. After each interaction with a new champion, make sure always to exchange contact information, which you will need to schedule follow-up meetings. 

#4. Think client and “walk the talk.” Eventually, a picture will emerge, and the potential for the next meeting will follow accordingly. Clients will frequently use three evaluation tools to decide whether or not they want to continue developing a relationship or not:

  • How much you understand the business from the client perspective
  • How well you can build mutually agreed-upon action plans for both sides 
  • How fast you are able to “walk the talk,” deliver as promised and follow up on other commitments as well

#5. Enhance the “T.” Make sure the gathered information in steps two, three and four are reflected on the profile you created in step one. Having an updated profile will allow you to see the big picture clearly, plan your next visit and identify the people you want to interface with either through planned or “spontaneous” meetings. 

#6. Do the loop. Now start again from step one and move through the process again.

Once you capture the value from undertaking this process, you can draw imaginary lines between the steps, create additional steps and add “sub-steps” as needed. I think of this as a best-practice template, which I encourage you to adapt to best fit your circumstances.

Conclusion

When trying to expedite constructive human interactions within your strategic account clients, you must endeavor to find the “sweet spot” between formality and informality. If your process is overly formal, you risk missing out on potential customer touch points and slowing progress. If your process is overly informal, you may get more customer touches, but your conversations will be less constructive and new relationships much less “sticky.”

The goal is to have as many meetings as possible in a single day, continually leveraging the information gained from past interactions to garner new ones. When executed to perfection, you will move from unplanned meeting to unplanned meeting. Success is never guaranteed, but based on my experience, this approach will give you the best chance of expanding your customer footprint over the long haul.

September 25, 2019Account planning, customer co-discovery, Customer knowledgeLeave a comment
SAMA training and certification, Strategic account management process

Creating joint solutions: Drive execution and communicate value (Part 3)

By Phil Styrlund and James Robertson

In the first two posts of this series, we discussed how larger business forces are pushing companies to rethink how they work with their customers, and how the most advanced companies are responding by systematically plumbing their customers for insights they can use to jointly create new sources of business value. In this post, we move on to the fun part: creating joint solutions, driving execution and communicating the value.

Create joint solutions

In this crucial phase, the company and customer:

  • Agree on and apply an approach to creating joint solutions that leverage the enterprise resources, capabilities, enablers and strengths of each organization
  • Collaboratively engage in structured ideation and brainstorming to identify “beyond-the-product/-service” enablers and generate potential solutions
  • Screen solutions and enablers for inclusion, exclusion or further development considering their relevance, impact and feasibility
  • Align, engage, and commit relevant resources to develop the prioritized solution(s)
  • Value engineer to optimize the solution for impact and differentiation considering solution components and enablers that can be added, eliminated, elevated or reduced
  • Prototype and test the solution with emphasis on agile development — testing early and failing fast, at the lowest cost

At the outcome of this phase, both organizations have co-created a joint solution relevant to the prioritized opportunity and have agreed to move ahead to build and validate the business case, communicate compelling value and to pilot and then implement the solution, joint initiative or new business model.

Our proposed approach for creating joint solutions starts with a prioritized customer “CareAbout,” aligns relevant products and services, and integrates enterprise capabilities beyond the core product/service that impact what the customer and/or end-user cares about most.

A structured approach for creating joint solutions

Central to successfully creating joint solutions is the ability of each organization to leverage its enterprise-wide capabilities. Value enablers are defined as any asset, capability, company strength or resource beyond the core product or service offering. While the idea of drawing on relevant cross-business, enterprise resources to co-create solutions with strategic customers sounds logical, fundamental and simple, in our experience it’s not always easy — and not common practice.

For many co-creation initiatives, this is where the “rubber meets the road”: when the joint solutions team engages and requests relevant resources, beyond the product, from across the business. To facilitate access to solution enablers and support their integration into new, “beyond-the-product” offerings, we suggest the following:

  • Ensure executive-level support and communication of the “grander why,” i.e., why creating value with strategic. customers is central to your company’s strategy and success
  • Engage and align the “critical crowd,” i.e., relevant internal stakeholders — early in the process — well before you make a specific request to invest their time and resources.
  • Build a comprehensive list and categorize enabling capabilities around core value themes such as reducing cost, improving efficiencies, growing revenue and elevating the customer experience.
  • Identify customer and company gaps in capabilities, i.e., value enablers, that are missing yet critical to co-creating value. Determine if these are capabilities you can build, buy or source from elsewhere.
  • Identify and engage “owners” of key value enablers using the customer’s voice to articulate why these capabilities/resources are important, the impact on the customer’s business, the value to the company, the cost of inaction, the joint solutions roadmap and “what matters next.”
  • Leverage relevant enablers to co-create solutions using structured brainstorming and creative design thinking to generate concepts and potential solutions.
  • Move forward to prototype, test and refine your solution.

Communicate value and drive execution

In this phase, the company and customer:

  • Develop their business case and compelling customer value proposition
  • Establish and execute their plan to deploy the joint solution/initiative
  • Agree on a governance framework, project plan, scorecard and review cadence to drive joint initiatives forward, faster
  • Reflect to capture lessons learned, build on what’s working, and assess opportunities to adjust strategy and scale solutions

Quantifying and communicating compelling, differentiating value to key stakeholders within the customer’s organization, and to the customer’s customer, is fundamental and essential to the practice of co-creating value.

Ultimately, if the value of your solution is not recognized, believed in and accounted for, your company will not be able to capture and realize the value co-created in the joint solutions process.

Value propositions are a well-established, yet often poorly practiced, concept in sales and marketing. Through research we’ve established that fewer than 10 percent of customers see their suppliers “creating real value, and being worthy of a long-term strategic relationship.” As one customer commented on their supplier’s value proposition, “This sounds like brochure-speak.”

We need to ask ourselves the question, “Why do value propositions seldom resonate?” Based on our research and work with clients, we’ve established that when compelling value propositions DO resonate, it is because they:

  • Focus on what matters most to the customer
  • Clearly articulate the differentiating value of your solution compared to the best alternative
  • Are quantified in the customer’s currency
  • Provide evidence of impact and proof of your company’s ability to deliver
A compelling value proposition will include these characteristics.

We suggest a simple value creation framework to collaboratively develop your compelling, relevant, quantified and differentiating value propositions. The framework provides a non-prescriptive structure for communicating thought and enables authentic articulation of your joint solution’s impact on the customer’s top “CareAbouts.” This framework, structured around four words — them, us, fit and proof — assures relevance and resonance by aligning what you bring (i.e., your solution) with the customer’s major needs and priorities.

Them: What do they care about? We need to truly understand what our customers care about. What keeps them up at night? What are their key issues and concerns? What is important to them? How are they measured, paid, and rewarded?

Us: What do we have? Here’s where you articulate relevant products, services, and value enablers. What pertinent capabilities and assets can you bring, beyond and/or wrapped around core products and services?

Fit: How does what you have impact what’s important to the customer and customer’s customer? Quantify and describe the impact of your solution on the key issues, concerns and value drivers of your customer and customer’s customer. Articulate your solution’s difference compared to the next best alternative.

Proof: Prove it! Provide the examples and evidence of the value you will bring and demonstrate proof that you can deliver and execute.

Applying this framework guides us to create, articulate and quantify customer-centric value propositions that resonate and enable the company and customer to realize value created through the joint solutions process.

Like what you’ve just read and want learn more? The Summit Group facilitates SAMA Academy’s CORE 2 workshop, “Co-creation and quantification of value.” Click here to learn more about SAMA Academy, to see a list of upcoming workshops and to register.

This is the final installment of a three-part series. Read parts one and two.

July 17, 2019October 9, 2019Account and enterprise alignment, customer co-discovery, Customer knowle, Value analysis and opportunity insight, value co-creationLeave a comment
SAMA training and certification, Strategic account manager skills and competencies

When selling innovation, the biggest challenge is mental

The academics Thomas Steenburgh and Michael Ahearne set out recently to uncover why companies are so much more successful at developing innovations than they are at commercializing them. To get answers, they undertook a thorough review of the academic literature, conducted one-on-one interviews and led several formal studies with B2B companies. You can read a summary of their results in Harvard Business Review here. The following interview took place earlier this year between Steenburgh, of the University of Virginia’s Darden School of Business, and SAMA’s editors.

SAMA: Why did you set out to investigate new product sales specifically? Why are they so important?

Steenburgh: My observation is that if you look at where companies spend their money, new products always take a lot of energy. If you look at the types of organizational structures they use, they’ll have market development boards, product boards. No money gets put into sales.  And yet the sales process for new products is totally different because you’re asking people to do a very different thing. We know most new product launches fail, so we wanted to find out: Why does it work that way?

There’s a McKinsey study that asked leadership teams about their confidence across a range of processes. Their confidence in developing beta testers is very high. But developing pilot users post-launch? No confidence. So as soon as you go to commercialize your new product, you have no idea what the customer wants? It’s craziness.

SAMA: Was there anything in your findings that surprised you?

Steenburgh: Probably the biggest challenge sales reps have when selling new products is emotional — managing your emotions, managing your perception of the product. My experience with salespeople is they have thick skins. But it turns out that with new products there are a lot of challenges that need to be addressed that you don’t have with existing products. 

SAMA: Like what?

Steenburgh: The only training that gets done these days is product training: features and benefits. One manager told us, “When I talk to my reps, they know the product well enough, and they know the market well enough. But when I ask them, ‘Why aren’t you going in and selling the product?’ It’s because they don’t want to appear stupid.” The market is moving quickly, and they have a psychological need to be the expert in the market, and they just didn’t feel confident in their own abilities.

SAMA: You’re asking the customer to be a guinea pig, especially if it’s a brand new product. The reps are asking themselves, “Do I really want to risk my reputation with this customer I’ve worked so hard to create a relationship with?”

Steenburgh: We looked at differences in behavior between reps who were successful with new product sales versus ones who weren’t. One of the things the successful ones do is they anticipated that the challenges in the buying process would occur later in the sale, and they developed a plan to manage customer expectations at that time. Also, the reps who are really good at selling new products are much better at figuring out which customers to target and which to avoid.

SAMA: In your HBR article, you write that the best companies customize their training to meet individual needs and tie assessments to performance. Can you talk about why this is so critical?

Steenburgh: We did a couple of studies with companies where they did competency mapping, and it’s interesting. It depends on company sophistication. Some companies don’t do anything. Some will develop competency maps but never tie anything back to behavior. The better companies create job descriptions from the competency maps, and then they measure their reps through competency assessments and use this to drive continual improvement. They may try to look at quantitative performance metrics like revenue, profitability and customer satisfaction, and tie it to the competency assessments to give them a better sense of how to write job descriptions. 

A step further would be to create company-wide training based on those findings. For example: I see reps need to have a growth mindset, so can I institute some training that speaks to this? Now, the very best companies go one step further and say, “I’m going to put this into my daily coaching process.” They measure reps individual by individual and then develop a coaching process that helps people in the dimensions that matter — and I know what dimensions matter because I tie the competencies back to performance.

We studied five companies and mapped competencies back to what actually worked in the market, i.e., what created the most revenue from new products, and if I were to advise companies on how to use this, I would tell them this: Use some kind of competency assessment, and introduce individual coaching to help reps become more open minded, to cultivate a growth mindset, to develop more long-term thinking and to become more adaptable. But it has to be a constant coaching process.

SAMA: In my own career, I found that solutions needed to be sold at a much higher level at the customer.

Steenburgh: Selling new products is very analogous to making the switch from selling products to selling solutions. It’s change management. A lot of companies think they can solve this primarily through incentives, but incentives alone won’t fix it. The behavior change is too big. Salespeople get excited at the beginning [when selling new products], but they don’t have the structure or support to make it work in the long run.

SAMA: And these are smart companies! Yet I see company after company that invests 5 or 6 percent in R&D every year – an enormous amount of money – but when it comes time to roll something into the marketplace, especially in B2B, the product just kind of “escapes.”

Steenburgh: I think the main difference with B2C is you don’t have as complex a decision-making unit. If you buy a car, that’s a complex decision, but it’s typically just two people. In B2B, you have a lot of players and that just makes it much more complex.

SAMA: Where do soft skills fit in?

Steenburgh: It’s definitely the emotional side, the psychological side, that doesn’t get addressed in these sales. The easy thing for me to do is product training because that’s what I know. It’s easier to talk about “speeds and feeds,” but it’s much harder to go out to the customer and talk about how a new product will change the game because there will be way more “window shopping.”

What I mean by that is that customers have an incentive to engage with you to learn about what’s going on in the marketplace. That’s not your incentive as a seller. If I call on 100 customers, five will be interested. It feels good, but 95% of them are going to be wasting my time. It’s seductive when you’re selling new products to be getting good feedback, but it evaporates in the long run. So it’s the soft side you need in order to read people, to figure out which customers will be genuinely interested and to handle rejection.

One thing that jumped out at me in our research is that businesses feel strongly about having great processes on capital approvals and project approvals for developing new products. But when it comes to having the right organizational structure in place to support bringing new products to market…having the right H.R. support network in place, for instance…they don’t feel so confident.

SAMA: 3M has always fascinated me because they are one of the few traditional B2B manufacturing companies, and they say that every year they aspire for 30 percent of their next year’s revenue to come from new product sales. Have they figured out something no one else has?

Steenburgh: There are companies that do it better than others, but I think it’s mostly a management challenge. If 3M makes that their mantra, then by putting that number out there it attracts a certain type of talent and it reinforces that there’s no escape, so to speak. It absolutely has to be part of the culture.

SAMA: We get asked a lot about the Challenger sales model and whether it can co-exist with SAMA’s more co-creative approach to creating value. What we’ve learned is that the Challenger is good — if you’re on the outside looking in. But if you’re the incumbent, you’re almost playing on the customer’s desire to stay with the status quo, where it’s better to not use that confrontational/challenging approach. It speaks to this whole not to sell the new product, less risky not to disrupt the customer.

Steenburgh: What you’re asking the reps to do is be a change agent externally in a situation where they have no control. They’re all leading without authority. So if you think change management is difficult internally, just imagine the external challenge.

One of the things we say in the article is that SAM can be a great place for establishing the right learning processes on the sales side. We know that co-creation of value is important, but mostly on the product development side. What we’ve seen is that if you can use some of those SAMs to help learn about the internal sales processes that they can be very helpful in designing a process for new product selling. It’s like a coach for the mainline rep. Management is much more likely to take a long-term view of strategic accounts than for mainline accounts. With new product selling, it’s going to take me a long time to sell. I need consistency, need to know how the buyer buys, and I need to know I’m not going to be jerked around. I can give the product the time it needs. Those relationships matter. The long-term focus mattes. It’s the right part of the organization to establish a beachhead.

SAMA: And based on the relationships they have, the customers are more willing to take that risk as well.

Steenburgh: That’s right. There’s that trust. It should be an easier leap for the customer to make on a new product if I’m a strategic customer, because what it means is that — if the vendor is really sophisticated — we’re having high-level quarterly meetings. The SAM might even have the CEO’s ear, or someone on the executive board. So if something goes wrong, I know I can raise the alarm and something is going to happen. Whereas, if I’m not a strategic account, if this thing breaks what am I going to do?

But it can cut both ways. If you have a great relationship, you don’t want to put it at risk. You need to have the culture of, “This is what we do. We’re going to work with you to get this right, and we’ll both be on the cutting edge together.” Those are the types of relationships you want to develop for new product sales.

SAMA: At SAMA we very much believe in competency assessments and their necessity for turning good SAMs into great SAMs. And we’ve seen research showing that the best SAMs can outperform their peers by a factor of three or more.

Steenburgh: I don’t have public data around individual performance, but I recall a study or a book showing the effectiveness of Net Promoter Scores across a wide variety of industries, and the results showed that the difference between average and below average is a 2x bump in revenue and profitability. And then the difference between average and superior was a 6x jump. In other words, the difference between poor performers and the very best performers was a factor of about 12. People that are really effective in this, they’re off the charts.

Want to learn how SAMA’s tailored, competency-driven training can transform your good strategic account managers into great ones? Click here to learn about our training philosophy, our Certified Strategic Account Manager (CSAM) program, and to see a schedule of upcoming training academies.

July 8, 2019August 15, 2019Emotional intelligence, InnovationLeave a comment
SAMA training and certification, Strategic account manager skills and competencies, Technology

The four pillars of work a SAM must execute on to be successful

By Jerry Alderman

The world of strategic or key account management (SAM/KAM) is the growth area of sales, which makes sense given how technology is overtaking so much of the transactional sales space. With customers no longer in need of someone to educate them on products or services, they need salespeople who can step beyond the information available online by delivering real insights that help them solve real problems. Welcome to SAM.

SAM is new to many companies. In others, it is transforming from relationship management to becoming a true problem-solving resource. During this time of transformation there is no better resource than SAMA (Strategic Account Management Association). They have been at the center of the universe for all things related to SAM research, learning and networking for more than 50 years….before SAM was cool!

Over that time, SAMA has benchmarked hundreds of B2B companies to identify what the best SAMs do differently. Keep in mind: I’m not talking about all the critical SAM program elements like executive sponsorship, account selection, compensation and the like. I am talking about the actual nuts-and-bolts work that a SAM must do with his or her internal and customer teams to be successful.

Continue reading “The four pillars of work a SAM must execute on to be successful” →
April 1, 2019July 3, 2019Strategic account planningLeave a comment
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