Understanding Key Account Engagement Segments PPT
This PPT slide, part of the 47-slide Key Account Management 101 - Best Practices PowerPoint presentation, presents a framework for understanding the varying needs of key accounts based on their willingness to engage in value-based discussions. It categorizes accounts into 4 distinct segments: Learn, Partner, Commodity, and Teach, each reflecting different levels of engagement and focus.
The "Learn" segment targets accounts that are eager to collaborate with suppliers to develop innovative solutions. These accounts are still in the early stages of building their capabilities and prioritize Total Cost of Ownership (TCO) over mere pricing. This indicates a readiness to invest in long-term value creation rather than short-term savings.
In the "Partner" category, accounts are characterized by a strong belief in the supplier's capabilities. They are willing to co-develop solutions and share the risks associated with development. These accounts view the supplier as a strategic partner, emphasizing TCO as a critical factor in their decision-making process.
The "Commodity" segment represents accounts that primarily focus on price. They engage suppliers only after service needs are met and show a limited willingness to pay for added value. This suggests a transactional relationship where cost is the dominant factor.
Lastly, the "Teach" segment includes accounts that recognize the supplier’s domain expertise, but prefer to develop solutions internally. While these accounts acknowledge the potential for significant value creation, they are skeptical about the involvement of third parties, indicating a preference for self-reliance in solution development.
This framework provides insights into how to tailor approaches to different account types, emphasizing the importance of understanding each segment's unique motivations and engagement levels.
This slide is part of the Key Account Management 101 - Best Practices PowerPoint presentation.
EXPLORE MORE SLIDES FROM THIS PRESENTATION
EXPLORE MORE PRESENTATIONS ON
Sales Consulting Frameworks Account Management Value Creation Best Practices Key Account Management
Flevy is the world's largest knowledge base of best practices.
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
