scaling emerging growth companies | Strategies to improve business profitability | advice for company growth
One imperative that companies trying to get past No Man’s Land, where they are too big to be small but too small to be considered big, have in common: they need to generate profitable revenue growth in order to achieve economies of scale. At that point, they have a chance to generate real wealth for their investors.
Newport Board Group exists to help companies get to this next level of growth where they can achieve their potential.
Account Management Is Key to Profitable Revenue Growth
In our experience, many companies’ first instinct about how to generate near-term top line growth is to think of developing new products and services for market niches, beyond those the company has targeted previously. While product and market expansion is often part of a growth program, we find that many companies tend to neglect a more efficient path to growth: targeting a relatively small number of customers you already sell to or can sell to; penetrating them deeply and realizing sharply increased sales with them.
Targeting high potential customers requires a key account strategy.
Key account strategy is more than simply identifying what you think are potentially high value customers and tasking a sales executive to target them (while giving her an imposing quota of sales you expect to achieve). Key account management rather is a longer term strategy requiring planning, calibration and then execution.
Effective key account management requires a commitment to understand the target company and its motivations—deeply and without pre-conceptions. You must set yourself the goal of enhancing the customer’s strategy and operations and defining the role your company can play in that process. You must be ready to build relationships and rapport with people at various levels of the company, even those who at first glance don’t seem likely to play a direct role in recommending or buying your product.
A successful key account strategy is much more than a plan for your sales rep to take people from the company out for lunch. It requires research, a team approach--and persistence. But the rewards you can achieve in increased revenue and profitability over the life of your company are immense. My next article in this series will provide a step-by-step overview of a successful key account program.
If you would like to learn more about how to increase your revenue and continue to grow your middle market company, download our free whitepaper below.
About the Author
Devesh Sharma has an impressive background in international corporate strategy, operations and M&A. His earlier background includes management positions in charge of IT, e-commerce and international operations. Learn more or contact Devesh directly here.
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