{"id":3388,"date":"2022-11-02T16:11:13","date_gmt":"2022-11-02T20:11:13","guid":{"rendered":"https:\/\/distributionstrategy.com\/?p=3388"},"modified":"2026-09-07T16:13:31","modified_gmt":"2026-09-07T20:13:31","slug":"how-to-build-key-account-plans-that-get-results","status":"publish","type":"post","link":"https:\/\/distributionstrategy.com\/2022\/11\/how-to-build-key-account-plans-that-get-results\/","title":{"rendered":"How to Build Key Account Plans That Get Results"},"content":{"rendered":"

The following is a <\/span>high-level, paraphrased summary of a <\/span>very <\/span>common <\/span>client <\/span>conversation<\/span> I\u2019ve had<\/span> over the years when working in mature vertical industries (<\/span>such as<\/span> wholesale distribution).\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

<\/p>\n

Me:<\/strong> In your sales force today, what\u2019s the mix between new business acquisition \u2013 meaning acquiring \u201cnew logos\u201d or accounts \u2013 and the management and growth of current accounts?<\/p>\n

Client:<\/strong> Well, we should probably be doing more new business development, but we\u2019re largely focused on growing our current accounts. We know we have a lot of potential to grow the accounts we have.<\/p>\n

Me:<\/strong> It\u2019s good that you recognize the need for expanding account acquisition but it\u2019s certainly great to hear about the potential growth in your account base. What percentage of your accounts would you consider key growth accounts with significant potential?<\/p>\n

Client:<\/strong> Uh, well, we don\u2019t have that quantified exactly. I\u2019d guess it\u2019d be something like 20%.<\/p>\n

Me:<\/strong> Excellent. And how have you quantified the potential growth in each of those key accounts?<\/p>\n

Client:<\/strong> Well, uh, we just know that they\u2019re not buying everything that our similar top accounts do, and we have an opportunity to sell more to most of them.<\/p>\n

Me: <\/strong>OK. I see. And what documented plans do these account managers have in place right now that you could show me, with a specific tactical plan for identifying and realizing that potential?<\/p>\n

Client:<\/strong> [Insert a long pause with puzzled look and head tilt \u2026 ]<\/p>\n

I wish I could tell you that this scenario wasn\u2019t <\/span>real or <\/span>common.\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

\"\"<\/p>\n

This lack of key account management exists even though there\u2019s very little new business development activity and growth relies on maximizing current accounts.\u00a0<\/span>\u00a0<\/span><\/p>\n

You see the problem here, right?\u00a0<\/span>\u00a0<\/span><\/p>\n

Read the bullet point on \u201cMomentum Fuel\u201d from this post<\/a>.\u00a0<\/strong><\/p>\n

To a degree, I understand how this happens, or at least how it came to be. In wholesale distribution, a very mature vertical industry, our sales forces have historically been very self-directed versus management-led. We\u2019ve sold primarily on the strength of long-time relationships and a great service orientation, mostly face-to-face with in-person visits and \u201ccheck-ins.\u201d <\/span>\u00a0<\/span><\/p>\n

What this <\/span>isn\u2019t<\/span><\/i>, unfortunately, is an effective go-forward, data-driven, purposeful go-to-market strategy for maximizing growth in our well-established account bases.\u00a0<\/span>\u00a0<\/span><\/p>\n

For the rest of this post, I\u2019ll walk through a process that I\u2019ve honed over many years, and recently included in our <\/span>Modern Sales Foundations<\/span><\/a> sales methodology and training course. I\u2019ve seen this method make a significant difference when well implemented.\u00a0<\/span>\u00a0<\/span><\/p>\n

Determining Account Potential<\/span><\/b>\u00a0<\/span><\/h2>\n

It all starts with determining account potential. A data-driven approach is best, and multiple <\/span>business intelligence software platforms<\/span><\/a> are available today to support this work.\u00a0<\/span>\u00a0<\/span><\/p>\n

\"\"<\/p>\n

Gather your data and review and benchmark account performance against your best-performing similar accounts. Then identify growth potential, good-performing accounts without growth potential that you want to maintain, and accounts where performance has slipped that you\u2019d like to reactivate or return to previous levels.\u00a0<\/span>\u00a0<\/span><\/p>\n

Setting Logical Account Objectives<\/span><\/b>\u00a0<\/span><\/h2>\n

The starting point in this stage is to conduct a Situation Assessment using the above-sourced data.\u00a0<\/span>\u00a0<\/span><\/p>\n

Situation Assessment<\/span><\/span>\u00a0<\/span><\/strong><\/h3>\n

\"\"<\/p>\n

To conduct the Situation Assessment for each of your key accounts:<\/span>\u00a0<\/span><\/p>\n