Verbatim: What Clients Say
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Strategic Account Management: A Sales Model Whose Time Has Come
By Guest Writer Susan Post Munafo
We are reminded by a recent article in The Economist, "Thriving in Adversity," that great wealth can be created during these economic downturns. Market leaders can fall by the wayside while laggards launch ahead. "Recessions shake things up rather than slow them down. They reward strengths and expose weaknesses, create new opportunities and kill old habits, release pent-up energy and destroy old business models."
We are witnessing the demise of the traditional law firm business model. Firms have lost their pricing power; demand for their services (as we know them today), is in a downward spiral. However, we are also seeing a number of firms collaborating with clients to identify their business drivers, creating new service solutions and hence, finding new opportunities for growth.
Strategic Account Management is a growth engine
While perhaps new to the legal world, Strategic Account Management (SAM) is a time-tested sales model that is predicated on building long-term, strategic and collaborative relationships with key clients. The supplier and buyer of services are mutually committed to each other's success. SAM is the next logical and critical step in moving toward enduring and profitable relationships with clients.
According to a recent study done by the Strategic Account Management Association (SAMA), 70 percent of corporate executives said that their strategic accounts grew faster than non-strategic accounts, and the strategic accounts grew revenue by 18 percent versus 9 percent.
A critical role in the SAM business model is that of the Strategic Account manager, who is the guardian of the customer relationship and is responsible for:
- understanding the client's strategic business drivers and goals
- identifying comprehensive product, service and solutions
- driving revenue growth
- promoting communication and knowledge sharing
- orchestrating the deployment of firm-wide resources
- ensuring service excellence and client satisfaction
Understanding your client is key
According to Marketing Hope 2009, a recent survey of AmLaw 200 marketing leaders conducted by Greenfield/Belser LTD and The Brand Research Company, 92 percent of respondents reported that they are thinking of or definitely conducting client interviews in 2010. Firms are recognizing that there are no sacred cows when it comes to client relationships. A shrinking economy is forcing them to work harder to protect their most valuable business assets - satisfied and loyal clients.
Client interviews, if done well and in the context of engaging in meaningful and sustained discussions with key clients, is a powerful tool in initiating the SAM model. It can provide critical due diligence regarding satisfaction and performance levels and is an opportunity to hear first hand, what is most important to the client.
As we approach 2010, take advantage of the opportunities that exist in the current market turbulence. It is a profound opportunity to think creatively, act boldly and thrive. The firms that embrace the practice of Strategic Account Management will not only promote revenue growth in the short term, but will also create a competitive advantage for many years to come.
Susan Post Munafo is a 20-year sales veteran in Strategic Account Management roles for Hewlett Packard and LexisNexis. She has also worked with law firms in a variety of sales capacities, most recently as an in-house business development manager for a prominent Boston firm. To learn how your firm can implement SAM, contact Susan at spmunafo@verizon.net.
For more information on Strategic Client Interviews, contact Joyce K. Smiley at 561-775-9755, or jsmiley@jkscompany.com. On the web at jkscompany.com.
JKS & Company is a proud sponsor of The 17th Annual Law Firm Marketing Partner Forum, January 13-15, at The Breakers Palm Beach.
Verbatim: What Clients Say is published electronically by JKS & Company LLC/Strategic Client Interviews. Copyright 2009 JKS & Company LLC. All rights reserved.
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email: jsmiley@jkscompany.com
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