Marketing and selling in tough economic conditions :

Managing key customers, clients

Prasanna Perera-Marketing and Management Consultant, Chartered Marketer, CIM U.K.

In many organizations the Pareto principle applies i.e. 20 percent of the customers provide 80 percent of the sales revenue and even profits. Hence, it makes sense to identify these key customers and manage them professionally. This article will show you how to achieve this task.

1. What is the definition of key customers or clients?

Very simply, any customer who contributes substantially towards an organization's revenue or profit, is a key customer. This is true in both B2C (Business to consumers) and B2B (Business to business) markets.

2. What is the difference between a customer and a client?

A customer maybe a one-off customer. But a client is a regular customer. In the world of business both words are used interchangeably.

3. To what extent should we delight key customers?

Since we are talking about key customers, delighting them by exceeding their requirements is in order. However, care must be taken not to create unnecessary expectations.

4. What information about key customers is required to manage them effectively?

Basically, a sound understanding of their business is required. In particular customers, competitors and business performance. Key decision makers and the decision making process should also be identified. Information about future business activities is valuable, since new opportunities can be forecasted. Soft aspects such as organizational culture, climate is also valuable.

5. How do you keep competitors away from customers?

Firstly, by providing excellent service consistently. This involves keeping promises, being honest and transparent in dealings. Secondly, by demonstrating to the customer that they are valuable and important to your business.

Thirdly, multiple contacts should be built so that relationships are secured at all levels.

Fourthly, regular review meetings should be held and operational issues dealt with.

Do not leave even small problems unresolved. Take action to rectify them immediately.

6. How loyal are key customers/clients?

There is no guarantee that key customers and clients will remain loyal.

There are many instances where key customers have defected for no apparent reason. Sometimes customers try out other suppliers just to experience what other options are available. Hence, focus on maintaining the dominant customer share and not exclusivity!!

7. Is it good to project yourself as a consultant to your key customers/clients?

It is a truth that business customers hate to buy from a salespersons. Instead, they are happy to buy from a sales consultant. (This is merely a mind shift). Hence, it is always good to project yourself as a sales consultant, not only by title, but also by actions. You will gain the respect of the customer in this manner.

8. What do key customers/clients expect from their suppliers?

Well the list is exhaustive. However, let me focus on a few key aspects. Above all, honesty and transparency in dealings is expected.

Competitive prices and favourable payment terms are increasingly becoming important, around the globe due to obvious reasons. Value additions such as free consultation, technical advise and also contacts to improve customer businesses is looked forward to.

Regular contact is important and relationship building is critical.

9. In what instances should you stop serving key customers/ clients?

If business ethics are violated, then continuity becomes a serious problem. Examples would be delays in payment, obtaining price quotes and forwarding them to competitors, unnecessary demands and arrogance. You cannot serve customers who do not want to be served! It is as simple as that.

10. What approach should be taken in the appointment of Key Account/Client Managers?

The people (chemistry) factor should always be considered.

The Key Account Manager appointed should blend with the client organization's culture. Secondly, the experience factor should be considered. If the client is strategically important, then an experienced Key Account Manager should be appointed. After all the Key Account Manager is a key link in the relationship.