In July, CEO Sigma Healthcare Mark Hooper announced losing a contract worth $1.7 Billion and in the next financial year earnings would half to $50 Million. Sigma distribute products to 400 stores for My Chemist and Chemist Warehouse and could not negotiate a new contract with their biggest customer.
What does this mean for Sigma?
Read MoreBusiness to business (B2B) or Business to Consumer (B2C), it's just selling and marketing to one person, isn't it? With B2C it's selling and marketing to the person who picks the product off the shelf or clicks the link on a webpage. With B2B, its selling to the buyer who gives you a purchase order, isn't it? To be successful you must understand two critical differences between B2B and B2C.
Read MoreTypically, when deciding which accounts to manage strategically, companies use revenue as the main criteria. This makes some sense. Managing accounts strategically requires a large investment in time and resources, so receiving adequate revenue to justify this investment is valid.
However Strategic Account Management (SAM) is about managing the accounts in your business strategically. Managing to achieve your company's strategic objectives, there are many other factors that influence whether an account deserves you investing more time and resources.
Read MoreManaging accounts strategically is a proven way to systematically monitor changes in your customers and competitors and make strategic choices for the future. Companies across many industry sectors have successfully applied the Strategic Account Management (SAM) framework to drive relentless positive change in their business.
So, what are the benefits of working more strategically?
Read MoreMany companies discover their largest accounts are transactional. They generate high revenues; however, place minimal value on the relationship and minimal value on your company's products and services. They are not interested in developing a strategic relationship with your executive team and if they do it is only to discuss getting reduced prices.
So, how should you best handle these accounts?
Read MoreOften in conversations about sales and customers, people talk about hunters and farmers. For those of you not familiar with the idea, the idea is that sales people can be classified as either Hunters or farmers. Hunters are sales people who go out and make the kill: get the new order or get the new customer; farmers are those sales people who manage existing customers to gain more orders from them.
Read MoreIn business there is a constant tension between managing risk and capitalising on opportunities. SAM is a critical element for doing both...
Read MoreOne critical aspect of managing accounts more strategically is to retain them by increasing barriers to entry against competitors. However, what companies’ often overlook ...
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