Dear Manager,
Over the past five years we have seen a very clear and obvious shift in the marketplace for most consumer products. Customers we once relied upon for growth and expansion may no longer exist, let alone be expanding. The question now becomes are we willing to accept the market for what it is and adjust our strategies to pursue product placement in channels we have not considered in the past? Or, are we convinced the former market will adjust itself, bringing back the good fortune of days gone by? At the very least, we must transition our products and marketing to meet the needs of these various markets, or accept all consequences.

In recent years, I have seen manufacturers begin to address new markets by developing a much higher priority for field management to expand into what I will define as Key Accounts. For various reasons, there has been a reluctance for the field sales personnel to implement this strategy.

What is a Key Account?

  • Any potential customer within your industry that has the capacity to make a major impact with your product or service in the marketplace. In consumer products multi-store chains including Drug, Department Store, Grocery and any other groups of stores that currently handle your products, or have the ability to do so.
  • Single locations with regional or national distribution. This would include: large free standing independent retailers, mail order, catalog, distributors, shopping networks, major fund-raising organizations and the like. Think in terms of selling pencils to a local office supply versus the local school district.
  • One of the best Key Account descriptions relates to the “special needs” of this type of account. This reflects on the type of very specific approach, maintenance, and immediate information this account relies on.

Why are these accounts not being fully developed?

  • There is certainly a level of intimidation relating to this type of appointment and type of account. This is not the type of presentation that many of us make on a daily basis. For this reason, many of us fail to gain the confidence or the understanding to effectively meet their needs.
  • The instant gratification that we take for granted with our independent accounts seldom applies in the development of Key Accounts. Rarely will we patiently accept an independent account that requires six to ten calls for a single placement or the development of a single purchase order.
  • From the perspective of time, it can be very difficult to invest in areas that can be highly demanding yet, at times, hold limited rewards. It initially seems hard to justify these efforts, feeling that it comes at the expense of seeing our “regular” accounts. A relentless approach is required to establish these accounts. Are we willing and prepared to make the commitment?
  • Many of us continue to fear the potential effect this type of customer will have on our independent business. As the marketplace has defined, we must accept and adapt to many of the dramatic changes, or have a very clear vision of exactly who and what we are trying to protect.

How do we develop this type of relationship?
I believe the biggest challenge is to first accept the obvious differences in selling this type of customer. Trying to fit the “Key Account” approach to business into our current sense of “Independent” reality will only promote frustration and disappointment.

These types of customers have a tendency to work with a much more limited number of factory representatives. Surprisingly, while relationships drive all aspects of sales, these relationships become increasingly important with the size and potential of the customer. Confidence and trust are essential; the stakes are simply too high!

Consider the buyer for a large organization whose first priority is to bring success to the organization and security to his or her position. The buyer’s options are to play it safe with the known potential of current vendors, or step outside with his or her neck on the line with a vendor who has yet to perform. There are clear benefits in either scenario, and all qualified buyers will proceed with an acceptable balance of the two. Simply remember, almost all of the down-side risk is with the new vendor.

This is the thought process we must understand and accept if we are ever going to overcome it. As a Key Account buyer, would you be willing to risk your job on taking a major new direction when its success is determined by not only the unknown potential of the product, but in the ability of your (new) sales contact to perform their responsibilities to your specifications? And you wonder why it can be so difficult to get that first appointment!

How do we begin to sell these customers?
Now that you have a greater understanding of their reality and what you are up against, with each step you must accept the need to overcome these obstacles by exceeding expectations. Begin by developing a target list of customers who either currently need or should need your products. When possible, visit more than one of their facilities to gain as broad of an understanding as possible relating to their operation. Often there will be an opportunity to speak with personnel who can share vital information relating to the priorities of the organization. Befriend those you can, asking for their assistance in developing your plan to proceed.

Commit to making ten or more calls on this buyer in the hopes of establishing a relationship. Often, an assistant to the buyer can be of great assistance in developing this contact. Remember, at this point you may only represent risk to the buyer. Your tenacious attitude will often demonstrate to them how genuinely sincere and serious you are. Buyers will routinely not return first calls, allowing the less serious to drop away. Send catalogs, drop off samples, do whatever it takes to get their attention. Eventually they will see you, it is their job.

How to prepare for this meeting
By now you will have a specific list of ideas and products for your presentation. Be realistic about the scope and potential of your initial presentation. Give them the ability to test you and your performance with limited risk. Your initial objective is a foot hold, not a full body take down!

Contact your factories, asking about similar relationships and success stories that may be effective in your presentation. Develop a full understanding of their competitive departments. In most instances, you will find that your buyer will have a very broad understanding of their business, yet because of their vast responsibilities, will have minimal ongoing knowledge of the specifics of the entire operation. Become an authority on their operation and its relationship to your product. Consider the value of strength in numbers. A qualified and “titled” factory representative can enhance your efforts.

Prepare both a formal and informal presentation. The formal presentation will reflect your knowledge of both their operation and your industry in a very professional manner. It will reflect on the ideas and proposals established from your knowledge of their business, and of similar operations that either you or your company have established. While this approach is effectively a shot in the dark, it will certainly establish you as a professional.

To get out of the dark, you must also prepare for an informal presentation. You can do so by asking questions and formulating, during your meeting, the answers to as many as possible. I tend to call this developing my lobby prepack. If your buyer suggests a current interest in a specific product or direction, immediately develop a program or prepack around it. Pay very close attention to their current priorities and dive head long into what would be perceived as an established program that, by coincidence, is tailor made to meet their needs. It’s amazing! From my experience, this is the most fun and creative aspect of sales.

Finally, address your understanding of the perceived risk in doing business with an unknown individual and product. Suggest examples of how you have assisted others in the past and how you will absolutely stand behind the commitments you have made in your presentation. While this may sound a bit overstated, causing the buyer to smile and downplay his concerns, you have just effectively lowered your single greatest hurdle to a mutually beneficial relationship.

As managers, we cannot be all things to all people in the marketplace. There is certainly the opportunity, however, to step outside our comfort zones to test, challenge and expand upon our current markets. While our best judgment will need to be used, our greatest opportunities should never be misunderstood.

Personal Regards,
Keenan

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