Whether your organization has a dedicated Account Management team, or your salespeople are in charge of managing their own accounts, it’s important to establish some performance measures focused on account management.
At the end of the day, strategic account management should be all about responsiveness, problem-solving, customer satisfaction, and building long-term relationships that lead to additional revenue. If these areas are well maintained, your team will be able to dig deeper into existing key accounts and maximize the revenue potential that’s there.
Let’s look at the best way to set up KPIs (Key Performance Indicators) for your account managers or sales professionals
Your organization’s account management efforts should be focused on:
- Retaining customers
- Strengthening relationships
- Growing revenue
Keeping these larger goals in mind, you should identify the specific, measurable objectives you want to achieve in each area. Those objectives will help you decide which metrics make the most sense for your team to track.
Setting up goals and metrics will help each team member know where to focus, and they’ll be prepared when it’s time for their performance appraisal.
The Strategic Account Management Training Program will help your salespeople master the art of organizing, managing, and growing their most profitable business accounts. Watch the video below to learn more about the program.
KPI Examples In the 3 Main Focus Areas
According to Gartner Group, 80% of your company’s future revenue will come from just 20% of your existing customers. It’s far more profitable to retain existing customers than to find new ones, so it’s key that your team keep customer satisfaction top of mind.
Performance Indicators for Retaining Customers:
- Retention Rate - Percentage of expiring contract renewals vs dropoffs (for subscription business models)
- Customer Churn Rate - Percentage of customers who cancel their contracts or fail to renew them
- Customer Satisfaction Score – How satisfied customers are with your product or service (you can use client surveys to track this metric)
- Support Requests - Number of calls or emails from customers reporting issues or requesting help
- Support Calls – Number of calls made in response to requests for support
- Support Emails - Number of emails sent in response to requests for support
- Time to Resolution - How long it took to resolve customer support tickets
- Product Engagement - How much customers are using products that can be monitored, such as SaaS software
In order to recognize new business opportunities—and be seen as strategic advisors when making recommendations—your account managers and sales staff must demonstrate their value to the client.
This requires staying on top of each key account and making sure the customer feels supported and confident working with your organization.
Performance Indicators for Strengthening Relationships:
- Strategic Calls – Number of calls made to offer best practices, strategic advice, consulting, etc.
- Strategic Emails – Number of emails sent to offer best practices, strategic advice, consulting, etc.
- Referrals - Number of new customers gained via referrals
- Outreach Engagement - The number of times a customer responds to account management outreach, such as calls and emails
In the end, the goal of your account management effort is to increase revenue. For that reason, it’s important to measure growth with key indicators or performance measures.
Performance Indicators for Growing Revenue:
- Customer Upsell Revenue - Revenue obtained via upselling
- Customer Cross Sell Revenue – Revenue obtained via cross-selling
- Contract Extension Revenue - Revenue gained from contract extensions
You can use the account management KPIs that make sense for your organization to measure how effective your team is at retaining, growing, and developing long-term relationships with your key clients.
Remember that establishing these measures is just one part of performance management. To set your team up for success, provide them with the training and tools needed to develop their own detailed account plans.
The Brooks Group’s Strategic Account Management training program teaches participants a highly-practical system for developing each of their key accounts in ways that will strengthen the client relationship—and drive additional sales revenue for your company. Learn More.
Published on March 13, 2018