If you can’t measure it, you can’t manage it! If you can’t manage it you probably can’t improve it! A core principle of The Chapman Group’s SMARTS™ / Strategic Account Management methodology is the integration of metrics into the Strategic Account Management Process. As businesses move into another era of the global economy – one driven by proven supplier ROI – measurements that provide immediate direction and correction are required.
Metrics, performance measurements against prescribed and recognized standards, solicit response and dictate action. They enable an organization to institutionalize excellence, implement and utilize best practices across the organization, and deliver results. They are straightforward outputs from the execution of recognized best practices, i.e. a byproduct of the normal execution of sales and account management activities. This is important because, when employed properly, implementing Strategic Account Management metrics does not cause additional efforts – they save efforts by guiding you to focus on the “right” efforts!
All organizations can employ metrics. They already do. Sales history, inventory, customer satisfaction results, and seasonal trends are all examples of metrics used in today’s businesses. Metrics and measurements drive both strategic and tactical planning and should consist of both leading and lagging indicators:
- Leading Indicators – Also known as predictive analytics, leading indicators predict change / an event before it actually happens. An example of a leading indicator would be Voice of the Customer Survey Results, which enables an organization to know what a customer may do before they actually do it.
- Lagging Indicators– Indicates a change and/or event that has already taken place. Examples of lagging indicators are Revenue Results and Customer Satisfaction scores.
The Chapman Group works with you and your team to determine the appropriate Strategic Account Management metrics (leading and lagging) to implement, incorporate them into a Metric-based Strategic Account Plan and/or a Joint and Balanced Customer Scorecard, and ultimately empower your organization with more accurate and intimate account knowledge leading to improved relationships and increased revenues and margins.