Account Retention

In my last blog I talked about the importance of keeping Council members engaged between meetings – to Keep the Momentum Going after everyone has returned to their everyday business lives. In this blog I’ll discuss Sub-Committees and a few best practices for integrating them into your Advisory Council program.

The Sub-Committee: High Impact, Light Lifting

It is important to follow a process and approach when organizing these working groups. “High impact, light lifting” refers to the effort we put forth to make it as easy as possible for our customer and their council members to “continue the conversation” between meetings. See below for an outline the four-step process we follow for managing Sub-Committees.

1. Topics for Discussion

The Sub-Committee should focus on a specific topic or subject.  What is good “Sub-Committee” material? Here are a few examples:

• A next step identified by the host that requires further input/feedback from the Council members (or a subset of members).
• A “hot topic” that came up during the meeting that a number of members clearly could spend more time discussing.
• An innovative idea and/or suggestion that came up during the meeting that members expressed an interest in exploring.
• A specific topic/area of the business where a Subject Matter Expert is needed to continue the discussion.

2. Structure

It is very important to clearly define the purpose of the Sub-Committee and expectations of members. Develop a Sub-Committee “Charter” for all participants (customer and host) outlining:

• Mission
• Duties (for both customer and host)
• Participants (Leader, facilitator and customers)

In addition, it’s a good idea to share a “Timeline of Activities” with all members early in the process so they have an understanding of the frequency of meetings and can reserve time on their calendars in advance.

3. Format

To stay mindful of the time commitment of customers, we recommend Sub-Committee meetings are in the form of conference calls, and no more than one hour.  Based on the subject, several calls (as communicated via the Timeline) may be needed to accomplish the goals of the Sub-Committee. Agendas are sent in advance, as is any pre-work that may be required for the discussions, and progress is shared among the group at regular intervals.

4. Sharing Results

This is the best part! A “celebration” is included at the next face-to-face meeting to report accomplishments back to the group and recognize the efforts of all Sub-Committee members. It’s a great way to thank your customers for their contributions and it encourages others to join in future Sub-Committee groups.

By following these four steps, your Sub-Committee engagements will be focused, well-planned meetings, easy for members to participate in, with clear goals and purpose.  

"Our corporate headquarters, fondly nicknamed the Googleplex, is located in Mountain View, California. Today it's one of our many offices around the globe. While our offices are not identical, they tend to share some essential elements. Here are a few things you might see in a Google workspace:

• Local expressions of each location, from a mural in Buenos Aires to ski gondolas in Zurich, showcasing each office's region and personality.

• Bicycles or scooters for efficient travel between meetings; dogs; lava lamps; massage chairs; large inflatable balls.

• Googlers sharing cubes, yurts and huddle rooms – and very few solo offices.

• Laptops everywhere – standard issue for mobile coding, email on the go and note-taking.

• Foosball, pool tables, volleyball courts, assorted video games, pianos, ping pong tables, and gyms that offer yoga and dance classes.

• Grassroots employee groups for all interests, like meditation, film, wine tasting and salsa dancing.

• Healthy lunches and dinners for all staff at a variety of cafés.

• Break rooms packed with a variety of snacks and drinks to keep Googlers going."

A CMO told me the other day, "I know which customers are strategic to my company. My challenge is making my company strategic to those customers."

His comment demonstrates the shift in marketing that is currently occurring within high-tech and service companies. In these organizations the marketing function is no longer about awareness, brand or feel-good programs. It is a results-oriented entity enabling the relationships and market position necessary to increase customer value and drive revenue.

As a result of this shift, 2010 ITSMA research shows an increase in the following tactics as part of marketing strategies: 

• Thought leadership development
• References and testimonials
• Senior level relationship management programs, customer advisory boards, councils

• Collateral (brochures, datasheets, etc.)
• Hospitality
• Sponsorships of sports/Cultural events
• Print-based direct marketing
• Traditional print/media advertising
• Public trade shows

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2010 www.itsma.com/access/research.asp


Has your company made the shift? If not, what's holding you back?

1. Use the voice of the customer to create an outside-in plan
2. Ensure the plan is well understood by employees
3. Integrate the plan in your management system

You know how it feels when you get off a really fast ride and plant your feet back on solid ground? You feel like you’re still “moving.” I’ve experienced that same feeling after a Customer Advisory Council meeting. Things go so fast, there’s so much to talk about that when it’s over, you feel like you’re still going 100 miles an hour! 

And that’s probably a good thing. These ongoing engagement programs with top customer decision makers help the host team understand the market more clearly. The continuous customer feedback from these programs gives the executive team the ammunition they need to drive strategy, planning, marketing, innovation, acquisitions, sales and service. I emphasize continuous for a good reason. The dialog doesn’t stop when the meeting is over – you can learn even more by keeping the momentum going and engaging your customers between meetings. In her blog, "Is the End the End or Just the Beginning?" my colleague, Misty Strawser, articulates the importance of “getting to work” soon after the meeting and continuing to share the feedback received.

Keep the Momentum Going!

Council meetings are rich in member feedback with discussions that provide the host team with an intimate look into the “world of their customers.” Internally, the executive team has to very quickly “get to work” to evaluate what they heard and identify what they will do next – therein lies the opportunity to engage your customers between meetings. 

What’s the best way to do that? First and foremost, regular communications to members to keep them apprised of any updates, progress, company news, etc. are a must. But there are other options too, and in my next blog I’ll talk about Sub-committees and some best practices on how to make them successful.

The third and final Critical Success Factor for the Executive Sponsor Program (ESP) is Pace. The Executive Sponsor Program is a journey, not a destination. I realize this sounds cliché. However, you can’t image how many organizations are not in alignment with this very simple principle.

Why? It’s typically because the Executive Sponsor at a high level knows what they want to achieve. They want improved client loyalty at an executive level, retention, increased testimonials/referencability and increased wallet share with these accounts, which is all very obtainable.

However, what they don’t understand are all the factors to help them achieve this objective. The Executive Sponsor Program (ESP) should be an executive relationship that is outside of any sales transaction.  It should be about strategically collaborating with your most important customers to help them solve critical business challenges or innovate something together that neither company could have achieved on their own.

You won’t achieve that by saying "I want our top 50 customer matched with our top 15 executives in the next two weeks." This is where the Pace comes in.

The graph below shows the journey based on our experience and research. The red graph shows when a company tries to implement themselves. You’re probably saying to yourself, we’re better than most organizations our results will be in the blue.

Sometimes, you need to go slow to go fast. Meaning, if done right, 80% of a successful launch is about the plan and 20% is the execution. We recommend that organizations start with no more than 3-10 pilots. This also goes back to Executive Sponsor alignment (CEO/President) and clearly understanding and communicating the goals, objectives and where this falls in the company’s priorities.

I will discuss "Common Myths in Building an Executive Sponsor Program" in my next blog.

For any company concerned with year-end sales goals, the logical question is how can I accelerate prospects through the pipeline and convert them to sales? The answer is an Executive Summit. An Executive Summit provides a non-sales gathering between executive peers to learn and explore services and solutions offered by your B2B Company. A well planned, organized and executed Executive Summit accelerates a call to action from all prospects and can yield a 50% conversion rate. Can you say that about other Marketing Campaigns or Sales Tactics, or are you just throwing money at a target hoping you hit a bull’s eye?

The next natural question to ask is can your company justify the cost of an Executive Summit? Marketing teams are always challenged to provide ROI justifications in order obtain funding for campaigns. Because an Executive Summit’s costs and results are completely measureable (you know how much you spent, and you know how much in sales it directly generated), it provides a highly effective, easily funded program.  As a result, marketing groups are able to score an bull’s eye with all executives on their company’s leadership team, especially the financial leaders who hold your purse strings.

When is the right time to address meeting your year-end sales goals? From the perspective of a financial leader, Suzanne Smith, Chief Financial Officer of Geehan Group who has also managed several large IT outsourcing budgets states, "While it is a concern throughout the year, third quarter is the time most companies look to see if they are ahead or behind to meet year-end sales goals." An Executive Summit provides reliable and predictable sales results and truly is the Ultimate Weapon to reach your sales targets.

The Center of Excellence (COE) is the "infrastructure" you need to have a program that is a standard, repeatable process that is sustainable. Without it, the program will become another "event" that your organization tried again but failed.

Here are some common questions we get asked when discussing the Executive Sponsor Program:

• How do we set our Executive Sponsors up for success?
• How do we keep the Customer Executive engaged?
• What criteria do you use to match the Customer Executive with our Executive?
• What criteria should we use to select the accounts?
• How many accounts should be in the program?
• How do you handle Global Accounts?
• How do you capture the great insight gained and leverage within the organization?

These are all excellent questions and ones that I’m always excited to answer, because when built correctly leveraging proven methodology,  best practices and our experience it will ensure the program is set up for success.

I will discuss "Executive Sponsor Program CSF#3 - Pace" in my next blog.

When clients come to us asking how to take their customer relationship programs to the next level they are typically asking how they can increase the level of relationship within the account. In other words, how do they move from vendor-type relationships with procurement to C-suite trusted partner status?

 The answer: Customer Advisory Councils and Executive Sponsor Programs.

A Customer Advisory Council is the first step in our B2B playbook. This forum of 20-30 decision makers represents your best accounts. A typical program includes facilitated, face-to-face discussions twice per year with sustaining activities, such as subcommittees, between meetings to keep members engaged.

Unlike other marketing activities that are focused on lead generation or measurement, Customer Advisory Councils are solely focused on building relationships and generating the market insight necessary to keep your business ahead of the curve.

Clients who have implemented Councils have seen, on average:

• 6% increase in customer retention
• 22% increase in new sales
• 10 additional customer references

The second tool is an Executive Sponsor Program (ESP). This formal approach to one-on-one relationships is best implemented following a Customer Advisory Council.

An ESP aligns an executive within your company with an executive in the customer account. The program exists outside of the sales cycle and outside of any particular deal or transaction. The intention is, over time, to create interdependency.

In interdependency, you become co-creators with your customers. Together, you and your customer create something that neither of you could do on your own. You become part of your customer’s long-term strategy.

Used in tandem, Customer Advisory Councils and Executive Sponsor Programs strengthen customer relationships and create sustainable, predictable, profitable growth. In doing so, they require the commitment and resourcing of any major corporate initiative.

 So, if you truly want to take your customer relationships to the next level, start with a Customer Advisory Council. Integrate the insights gained from the Council into your organizational planning process. As your company becomes more market focused, move to programs like ESP. Along the way, use your referral process and NPS programs to gauge how well you are moving the needle.

When you're launching a program that is impacting the top 20% of your customers, representing 80% of your revenue, the program needs to be taken seriously.  I know that seems so intuitive that you can't believe I mentioned it.  However, the scary truth is, I have found very few organizations that have truly institutionalized this thinking and are laser-focused on driving results with the top 20% of customers through executive programs.

There are two components to a successful Executive Sponsor Program launch.  They are the Center of Excellence and the Engagement.

• Goals of the program
• Number of accounts
• Number of sponsors
• Types of relationships you have today and relationships you want in the future
• Executive Sponsor Expectations
• Capturing and Communicating Customer Insight

In my experience as an Account Manager, an Annual Customer Review can be vastly different from one organization to another. The review can be a look at past performance/utilization, provide a picture of the current state or even a more forward looking view of what is coming in the next 12 to 18 months for your customer. I would like to provide my insights into new ways of thinking about customer reviews.

Let’s begin with a common definition of an Annual Customer Review. Simply stated, an Annual Customer Review is an annual face to face meeting with you and your customer to discuss the state of the account. How someone chooses to interpret what the level of customer discussion should be and the content that is provided during the review can be accomplished in many different ways.

We need to step back and ask ourselves this question first, "What should a Customer Review really be for our customers?" The Customer Review can be a strategic discussion that is solely focused on your customer. Make the review your opportunity to speak to your customer about their business. The review meeting allows you to gain perspective and insight on what your customer’s top challenges and priorities are with each business owner in attendance.

An Annual Customer Review is the right thing to do for our customers, but many in sales really don’t understand the true value that performing an Annual Customer Review can bring. If you begin to think past the negative aspects of pulling off a successful review i.e. creating that PowerPoint presentation, pulling together meaningful information to share, e-mails to various internal team members to gather feedback; the review can be a positive experience for you and your customer.

In my next blog I will be discussing some commonly held myths about the Annual Customer Review process.

It is simple: Everyone gets excited when a new customer is secured. There’s a celebration, bells are ringing, lots of recognition and rewards are handed out. Song’s like the Black Eyed Peas“BOOM-BOOM POW” or “I Gotta Feeling” are blasting in the hallways and everyone feels as though the most popular person in school just asked them to prom.

Been there, done that: How much celebration is there when a long standing customer renews for the 6^th straight year? Forget that they haven’t bid out the work in 3 years (no competition=greater margin) and they are already in your system (low cost of support, faster payment = greater cash flow).

It still only generates the excitement of going to prom with the back-up date and dancing to an old Richard Marx song. Yes you are at the prom, but that spark just isn’t.

Now the reality: It costs 3-5 times more to acquire vs. retain a customer. Getting your current customers buying more of your stuff means it’s harder for them to leave you (increased switching cost) and current customers are much less likely to bid out your work (increasing profitability). Shouldn’t you evaluate how your how you are spending your marketing dollars? 

Opportunity: Evaluating your marketing mix today and making the proper adjustments from acquisition to account growth can make a huge difference in top and bottom line results. Now that’s something the entire leadership team will be thrilled to hear about. 

Just maybe then you’ll become the most popular person in school (or at least the leadership team) and the CEO throws you the keys to the company G5 and backstage passes to the Black Eyed Peas.

There’s probably nothing more difficult in an organizations’ sales and marketing approach than to establish a footprint and presence in a new market.  The complexities and challenges are numerous:  Lack of brand awareness, lack of cultural knowledge, solutions that are not “localized” and the list goes on and on.  Not even to mention the fact that executive relationships become even more challenging for a foreign company thousands of miles away from the target market.

But one company is well on its way to achieving great success with the challenges of developing executive relationships in a fairly new and now highly targeted region for account expansion and growth:  EMEA.  That company is Harris Broadcast Communications (“BCD”).

Most organizations struggle to gain access and to connect with a new group of executives in a new region – but Harris BCD was up for the challenge.  Because of its growing product portfolio and fast changing market – they realized they must be successful at the executive level in EMEA to continue to grow.  

Harris BCD’s recently delivered their first EMEA Executive Advisory Board.  It took a great deal of focus and a targeted approach to gain access and enough trust with a group of EMEA based executives – but Harris pulled it off.  The approach BCD used was to selectively choose a small group of influential executives from strategic customers in the EMEA region.  Richard Scott, SVP and GM of the EMEA region, and his sales team were the primary relationship owners. 

What is most unique about this situation is that Harris was able to attract a group of 14 executives to connect with them in a manner shared by relatively few technology companies – a customer advisory board.  Rather than focus on a single event to attract executives and spend money on a speaker, a golf excursion or other event – Harris BCD instead invested in a first rate customer advisory board.  There were no lengthy power point presentations – instead it was a dialogue driven approach that kept the customer executives engaged for a day and a half. 

The benefits were mutual.  Harris BCD gained insight in to this targeted growth market and the customers had an open forum to help BCD understand where and how to focus investments to win in EMEA.  The side and most important benefit – Harris BCD and the customers were able to establish executive level relationships together – something that would normally take years to accomplish.