I just heard a speaker at a recent conference share for the first time in history, that more salespeople missed quota than hit it in 2021. At first my gut says…Covid -19. That may have had some impact, but the reality is salespeople hitting quota has been sliding since 2016. Why are salespeople failing to achieve the sales plans of their organizations? How can we fix this common sales problem and grow our sales profitably? Should all accounts receive the same focus, or should we develop strategic account growth plans for our larger customers?
When top-performing salespeople develop and work strategic account growth plans, we know they outperform their peers without any plans.
A strategic account development plan offers your sales team many benefits.
- Revenue Growth
- Increased Profit
- Increased Net Profit by Customer
- Increased share of wallet by key account
- Improved relationships at key accounts
- More relationships with new stakeholders at key accounts
- New product placement
- Defensive Tactic from competitors stealing business
- Access to your key accounts’ leaders
Without an account development plan, your sales results are at the mercy of market highs and lows, buyer dispositions, and your competitions’ ability to execute. Without account development plans every day, your salespeople are basically “winging it.” If they don’t have a plan, they are not creating any momentum and not achieving sales velocity with your key customers.
The question becomes – do you want to develop a strategic account growth plan collaborating with your largest accounts and proactively grow the business? Or do you want to live day to day with customers demanding your time? There are not enough hours in the day to firefight all their demands. Do you want to live in a world of acting on the urgent and reacting, or writing your destiny?
We have all heard the quote:
“By failing to prepare, you are preparing to fail.”
― Benjamin Franklin
When I coach salespeople and ask to see their account development plans, I get that deer in the headlights look. They often share they don’t have the time to write a plan. I’m too busy to write growth plans for my large accounts. Or my favorite…I have a plan its just not written down.
Salespeople are like customers; their perception is their reality. However, once they develop strategic high-profile account development plans, work their plans and experience the sales growth…they are sold!
As sales leaders, we must create a new perception. We must move our sales teams from reactive to proactive revenue growth with strategic account development plans. Just as we want and need our salespeople to evolve from “reps” to “strategic trusted advisors,” we need to teach them how to develop strategic account development plans and coach them to execute those plans. When I teach and coach salespeople, anyone for that matter, I like to use analogies to help what I am sharing stick.
Developing strategic account growth plans is much like solving Rubik’s Cube.
Most salespeople do not know how to solve this three-dimensional problem.
What else do we know?
When you have a plan in place, you can ensure you’re growing key relationships, giving each customer the appropriate amount of time and attention that creates value for them.
If you’re ready to get started on creating your own strategic account management plans, please visit my blog.
Next month’s article will share the critical components of a strategic account development plan and how to pick the accounts that warrant one.
If you can’t wait until next month, give me a call, and I will be happy to help you.