account management profiling tool
DESCRIPTION
A useful tool for profiling the strength of relationship and trust in a client accountTRANSCRIPT
![Page 1: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/1.jpg)
The business of doing the
businessbusiness
- April 2011
Devised by C Morris - www.evolve.ie
![Page 2: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/2.jpg)
Customer Perception LadderCustomer Perception Ladder
3
ValueValue
PartnerPartner
1
2
CostCost
Value AdderValue Adder
Commodity BrokerCommodity Broker
![Page 3: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/3.jpg)
The Big 8The Big 8 – P.A.R.T.N.E.R.P.A.R.T.N.E.R.
• Perception (supplier status)
1. Commodity broker
2. Value adder
3. Partner
PP• Awareness
(of their business)
1. Media / gossip
2. SWOT - entry level
3. SWOT/Chart/Director
AA
3. Partner
• Relationship(vertical)
1. Entry level
2. Middle management
3. Regular – Top brass
RR
3. SWOT/Chart/Director
• Them (our perspective)
1. Once off
2. Yearly commitment
3. Strategic partnership
TT
![Page 4: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/4.jpg)
The Big 8The Big 8 – P.A.R.T.N.E.R.S.P.A.R.T.N.E.R.S.
• Number of(products)
1. One
2. Two
3. Three plus
NN• Euro margin / profit
(of their business)
1. Low
2. Medium
3. High
EE
3. Three plus
• Relationship(horizontal)
1. Entry level
2. Order taker & manager
3. Level two &
Successor/Influencers
RR
3. High
• Spend(percentage of)
1. Ad hoc
2. Preferred supplier
3. Total
SS
![Page 5: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/5.jpg)
Account Management WheelAccount Management Wheel1. Perception -Supplier Status
2. Awareness
Of their biz.
3. Vertical
8. Spend
Percentage of
1
2
3
3. Vertical
Relationship
4. Them – our
perspective
5. Number of products
6. Horizontal Relationship
7. Euro margin
![Page 6: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/6.jpg)
Account Management WheelAccount Management Wheel1. Perception
Supplier Status
2. Awareness
Of their biz.
3. Vertical
8. Spend
Percentage of
3. Vertical
Relationship
4. Them – our
perspective
5. Number of products
6. Horizontal Relationship
7. Euro margin
![Page 7: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/7.jpg)
Account Management WheelAccount Management Wheel1. Perception
Supplier Status
2. Awareness
Of their biz.
3. Vertical
8. Spend
Percentage of
3. Vertical
Relationship
4. Them – our
perspective
5. Number of products
6. Horizontal Relationship
7. Euro margin
![Page 8: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/8.jpg)
Account Management WheelAccount Management Wheel1. Perception
Supplier Status
2. Awareness
Of their biz.
3. Vertical
8. Spend
Percentage of
3. Vertical
Relationship
4. Them – our
perspective
5. Number of products
6. Horizontal Relationship
7. Euro margin
![Page 9: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/9.jpg)
NEGOTIATIONNEGOTIATION
Concede in areas of lesser importance to
gain in areas of greater importance
![Page 10: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/10.jpg)
GREAT NEGOTIATORSGREAT NEGOTIATORS
KNOW TWO THINGSKNOW TWO THINGS
(1)THE VALUE OF THEIR PROPOSITION
�Belief in their product or service
�Ability to Communicate that Belief�Ability to Communicate that Belief
�Competitor Knowledge
�Industry Knowledge
�The benefit to the purchaser
![Page 11: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/11.jpg)
(2)(2)
![Page 12: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/12.jpg)
6 Principles Of Negotiation
�Distinguish the issue from the personality
of the negotiator
�Agree Objective Criteria
�Innovative Option Creation�Innovative Option Creation
�Be Specific
�Interests versus Positions
�Zonal Negotiation
![Page 13: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/13.jpg)
Preparation for NegotiationPreparation for Negotiation
![Page 14: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/14.jpg)
Preparation 1
• Prepare must have objectives and wish
lists
• Know what is out of bounds
• Get into their shoes – What are their • Get into their shoes – What are their
objectives
![Page 15: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/15.jpg)
Preparation 2
• Decide Fallback Position (theirs and yours)
![Page 16: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/16.jpg)
Preparation 3
• Prioritise Tradables
• Know what they are
– Price, Volume, Term, Payment, Delivery,
Warranties, Testimonials, RecommendationsWarranties, Testimonials, Recommendations
• Construct the Value of the Tradable to
both parties
![Page 17: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/17.jpg)
Preparation 4
• Construct best and worst trading limits
![Page 18: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/18.jpg)
Preparation 5
• Plan What If’s
![Page 19: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/19.jpg)
Top Tips for Negotiations
1) Give them what they want – On your terms
2) Avoid Dilution
3) Give nothing for nothing
4) Win-Win is better for long term business
5) Summarise very regularly5) Summarise very regularly
6) If you think you are far apart – propose first
7) Don’t just state grievance – propose a solution
8) Watch for signs of flexibility
9) Ring fence areas that you won’t budge in
10) Open realistically – move carefully
![Page 20: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/20.jpg)
Top Tips for Negotiations
11) Always remember to be strong on the relationship
12) When you make a proposal – Shut Up (Invite response)
13) When you ask a question – Shut Up (Invite response)
14) Value your tradable on their terms
15) Slice up your tradable15) Slice up your tradable
16) Give them your specific conditions before your offer
17) Put a price on unreasonable demands
18) Use Trial Closes
19) Use Add Ons and Take Aways
20) Structure expectations between meetings
21) Summarise Your Agreement
![Page 21: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/21.jpg)
The Stages of Negotiation
Stage 1 – Issues on the Table
• Get Issues on the Table (Broadly)
• Demonstrate Openness by starting the List
• Mix up your high priority and low priority
tradablestradables
![Page 22: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/22.jpg)
The Stages of NegotiationStage 2 – Get and Give Information
• Ask questions
• Seek first to understand – then to be understood
• Find out their Priorities – uncover their motives and interests
• Review Issues
• Structure Expectations• Structure Expectations
• Test Assumptions (Why do you have no flexibility on that)
• Probe Motives
• Explore Priorities
• Identify interests and inhibitions
• Be constructive – avoid point scoring and sarcasm
• After Making a proposal – Invite a Response
![Page 23: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/23.jpg)
Making Proposals
• Open realistically
• Credible – facts to support
• Address all key issues• Address all key issues
• At other party’s limit
Intro-Propose-Explain-Summarise-Invite Response
(Don’t just state a grievance propose a remedy)
![Page 24: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/24.jpg)
The Stages of NegotiationStage 3 – Get Clarity
• Understand their proposal
• Clarify – Paraphrase and Summarise
• Get and Give Information
• Get on the same page• Get on the same page
![Page 25: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/25.jpg)
The Stages of NegotiationStage 4 – Signal Flexibilities
• Signal – Watch and Listen
• Flag Flexibility (If it will make a difference)
• Indicate ‘out of bounds’
– `Just suppose’– `Just suppose’
![Page 26: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/26.jpg)
The Stages of NegotiationStage 5 – The Swapping of Concessing
• Trade Concessions
• Be clear / Be specific
• Be realistic – address their real concerns
• Don’t interrupt• Don’t interrupt
• Understand their concessions
• If you doG..then IGG(conditions before
offers)
![Page 27: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/27.jpg)
Receiving a Proposal
Option Yes/No
No – Leaves other party with initiative
Yes – Are you missing a chance of Wish List
� Instant Counter Proposal – Leads to Haggle
� Adjourn – Thinking and Consulting time� Adjourn – Thinking and Consulting time
� Detailed Response – Repackage to make more acceptable
� Considered Counter Proposal – The circumstances that you will agree to what they are proposing
(Give them what they wantGG.on your terms)
![Page 28: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/28.jpg)
The Stages of NegotiationStage 6 – Finalise the Deal
• Trail Closes – are you saying that if I G..
• Questions about minor details signal deal close
• If you agree to the proposal thenG.
• Don’t get greedy• Don’t get greedy
• Conclude and Summarise
• Ambiguity is cleared up more easily at this point
• Agree implementation process
• Write it down
![Page 29: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/29.jpg)
Questions
‘The wrong ones’
• Are you listening to me?
• Do you think I was born yesterday?
• Yeah, yeah, but what do you really want?
• Multiple• Multiple
![Page 30: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/30.jpg)
Questions
‘The right ones’
• Perhaps you could explain your reasons?
• Let me understand what your priorities are?
• Is there anything I can do for you?
• Why is that important?• Why is that important?
• If I do that for you – what will you do for me?
• Under what circumstances would you do what I
want?
• Is there anything else it would be useful for me to
know?
![Page 31: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/31.jpg)
Roadmap
• Prepare for Negotiation
• Introduction and Build Relationship
• Get a shared understanding of Issue
• Get and Give Information
• Summarise Understanding• Summarise Understanding
• Signal Flexibility
• Make Proposals
• Bargain ‘Swap Concessions’
• Agree and Confirm Deal
![Page 32: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/32.jpg)
NEVERNEVER
• SAY ‘IS THAT YOUR FINAL OFFER?’
![Page 33: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/33.jpg)
QUESTIONSQUESTIONS
![Page 34: Account management profiling tool](https://reader034.vdocuments.site/reader034/viewer/2022051816/545894a5b1af9fb66e8b5593/html5/thumbnails/34.jpg)
THANKSTHANKSConor Conor MorrisMorrisConor Conor MorrisMorris
www.evolve.iewww.evolve.ie