Those who supply strategic account management (SAM) services define it as a system for jointly coordinating resources and developing opportunities that incorporates the supplier into the client organization and their supply chain. This approach provides unlimited tangible benefits for the supplier; when you are immersed in the client organization, the client will inevitably be reluctant to replace you.
The ultimate goal of SAM, from the supplier's viewpoint, is to move farther upstream in the client organization's own strategy and decision making processes. Deciding exactly how far one wants to move, and can move, is a key question for the strategic account manager to answer with his or her team.
While there will always be pressure to maximize immediate sales, strategic account managers need to recognize that SAM is not the same as strategic selling. While selling may be strategic, it still occupies a place relatively far down in the decision making chain. SAM starts where strategic selling stops. One of the benefits to a supplier firm of moving farther upstream is that comprehensive analysis—of the decision makers, competitors, and benefits of your solutions— becomes progressively unnecessary. The farther upstream the strategic account manager goes the more he can form opportunities with the customer. The deal unsurprisingly flows out of your upstream position; you do not need to use all of your negotiation skills.
Having examined what SAM entails, let’s turn to consider the educational requirements necessary for this demanding field. A degree is not compulsory in this field because the majority of strategic account managers begin their career at the sales and marketing level and gradually rise, with the accumulation of experience and business insight, through the ranks. Having a degree though, especially with emphasis on math and economics is helpful because that kind numeracy is essential accurately predicting fluctuations in costs and other market markers. Adequate knowledge of one’s company and related operations is also essential, as it can greatly assist in elevating your position.
In addition to any formal education a candidate may have, focused training is significant to the success of a SAM program. Preferably done with an account team and its leader(s), effective SAM training focuses on five factors namely:
- Training for SAMs in communication, influence, leadership, business insight, and strategy skills, to help them shine in the management and leadership part of their role.
- A technique for diagnosing where you are on the SAM continuum with an account, and where you want to move and can move.
- A pattern for building an account plan that will help move you to the desired spot; moreover, a plan that can be shared and worked on with the client.
- Experiences to help account managers and teams not only analyze and plan, but also feel what it is like to achieve excellence in SAM.
- More flexible set of tips and tools to help account teams build and implement the account plan, with an emphasis on ease and the ability to choose what fits the situation.
SAM candidates are selected for their displayed potential in developing shared business goals, their ability for influencing critical business strategies, and and their short term revenue decisions. They also need to display the ability to integrate systems and resources to create considerable efficiencies for supplier and customer.
These abilities are critical to an account manager because SAM is a critical customer-facing role and operates at a state level in managing the habitual relationship with the company’s prime clients. It is the duty of SAM to ensure profit generation and client satisfaction – these two are sensitive acts akin to tight tope walking, especially due to the need of ensuring that products are competitively priced in order for them to earn your business adequate returns.
When it comes to remuneration, the average perks that SAMs received last year in UK firms were between £26,000 and £41,000. Estimated earnings could append another 30-32% while higher echelons in the sector attract significantly more.
Regardless of the path a company chooses, it is imperative that account teams are clear as to how the strategic accounts are chosen. The senior executive team must be involved and fully support the selection process. Without these ingredients, it is likely that account managers and teams will withdraw their support from SAM before it has even begun.
