Account Planning Worksheet by Tim Cutts (and Hiccup)

Abstract: Account planning is much more than just a task; it's a strategic imperative for businesses aiming to build, maintain, and grow relationships with key customer accounts. By leveraging the Danaher Business System (DBS) tools, sales professionals can adopt a disciplined, data-driven approach that aligns with customer needs, drives sustainable growth, and encourages long-term partnerships. This comprehensive guide walks you through a step-by-step process of account planning using DBS, addresses common challenges, and highlights critical metrics for success. By embracing these strategies, sales teams can create effective account plans that ensure mutual value creation and maintain a competitive edge.

Step 1: Voice of the Customer (VOC)- Gather Customer Insights?

Objective: Understand your customer's business goals, challenges, and key stakeholders.

• Action: Conduct VOC interviews to gather detailed feedback on the customer's priorities and pain points.
• Stakeholder Mapping: Identify key decision-makers and influencers within the account.
• Tool: Use structured questions and surveys to capture in-depth information about the customer's needs, challenges, and pain.

Examples of Questions to Ask:

1. What are your top business objectives this year?
2. What key challenges are you facing in achieving those objectives?
3. Who are the main decision-makers and influencers within your organization?
4. How does our product or service align with your goals?

Next Steps: Document the insights gathered and use them to shape the next phase of your account plan.

Step 2: Set Account Goals Using Hoshin Kanri for Alignment

Objective: Set clear, measurable goals for the account that align with both your organization's and the customer's strategic objectives.

• Action: Define SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) for the account.
• Use Hoshin Kanri: Align your sales, marketing, and product teams around these goals to ensure cross-functional collaboration.

Examples of Goals to Define:

1. Revenue Growth Target: Increase sales by n% within 12 months.
2. Product or Service Adoption Milestones: Implement a new product line across n regions.
3. Customer Satisfaction Improvement: Increase satisfaction scores by n% by year-end.

Next Steps: Share these goals with internal teams and ensure everyone understands and can articulate their role in achieving them.

Step 3: Conduct Strategic Analysis Using Root Cause Tools

Objective: Analyze the current state to identify growth opportunities or risks within the account.

• Action: Conduct a SWOT Analysis to identify strengths, weaknesses, opportunities, and threats.
• Use Root Cause Analysis: Apply tools like 5 Whys or Fishbone Diagrams to dissect challenges the customer is facing.
• A3 Process: Use the A3 tool to summarize problems, analyze root causes, and create an action plan.

Analysis Areas:

1. What strengths or opportunities can we leverage in this account?
2. What challenges or risks need to be addressed?
3. What are the root causes of the customer's key challenges?

Next Steps: Document your findings and prioritize the opportunities and risks to address in your action plan.

Step 4: Use the Problem-Solving Process (PSP) Tool to Develop Your Value Proposition

Objective: Craft a compelling value proposition that speaks directly to your customer's pain.

• Action: Use the Problem-Solving Process (PSP) tool to develop solutions that tackle the customer's challenges.
• Kaizen: Ensure your value proposition is flexible and capable of scaling with the customer's needs over time.

Key Elements:

1. Identify the Problem: What specific problem are you resolving for the customer?
2. Clarify the Solution: How does your solution specifically resolve their pain?
3. Highlight Measurable Benefits: What measurable benefits (e.g., cost savings, efficiency improvements) can you offer?

Example: "Our solution will reduces your downtime by 30% which will increase production efficiency and lower operational costs."

Next Steps: Present the value proposition to the customer and confirm alignment with their goals.

Step 5: Create Standard Work and Visual Management Elements Using the Action Plan Tool

Objective: Develop a clear, time bound action plan to execute on the account goals.

• Action: Use Standard Work to outline specific steps needed to achieve the goals. Ensure each step is repeatable, time based, and clearly documented.
• Use Visual Management: Create a dashboard or visual tool to track progress in real-time.

Action Plan Details:

1. Define Specific Steps: What actions are required to achieve the account goals?
2. Assign Responsibilities: Who is responsible for each action?
3. Set Deadlines and Milestones: What are the timelines for each step?

Example:

• Step 1: Introduce new product line Responsible: Sales Team Deadline: Q2
• Step 2: Provide customer training Responsible: Product Team Deadline: Q3

Next Steps: Regularly review the action plan with your team and adjust as needed to ensure alignment and progress.

Step 6: Build Relationships Using Gemba and Continuous Engagement

Objective: Strengthen the relationship with the customer through direct engagement.

• Action: Conduct Gemba Walks (visiting the customer's site) to observe operations firsthand and identify areas where your product can add value.
• Continuous Engagement: Schedule regular check-ins, progress reviews, and updates to maintain a strong relationship and continued alignment.

Engagement Checklist:

1. Are you visiting the customer's operations regularly?
2. Are you maintaining open lines of communication and providing value beyond the sale?
3. Are you addressing their concerns and adapting your strategy as needed?

Next Steps: Schedule quarterly visits and follow-up meetings to ensure continuous engagement with the customer.

Step 7: Monitor Performance Using Plan-Do-Check-Act (PDCA)

Objective: Track the performance of the account plan and make necessary adjustments.

• Action: Use the Plan-Do-Check-Act (PDCA) cycle to continuously evaluate performance against goals and KPI’s.
• KPI Tracking: Monitor key metrics such as revenue growth, product adoption, and customer satisfaction to ensure progress is on track.

PDCA Cycle:

1. Plan: Define the actions needed to meet account goals.
2. Do: Implement the plan.
3. Check: Inspect and measure results against KPI’s.
4. Act: Adjust and counter measure the plan based on performance.

Next Steps: Conduct regular performance reviews and adjust your strategy where necessary to stay aligned with customer needs and business goals.

Common Challenges in Account Planning

Even with a structured approach like DBS, sales teams may encounter challenges that can derail account planning. Understanding these obstacles is crucial counter measuring.

1. Lack of Clear Customer Insights

• Problem: Inadequate understanding of customer goals and challenges.
• Counter measure: Conduct a thorough Voice of the Customer (VOC) process to gather real-time feedback and insights.

2. Insufficient Internal Alignment

• Problem: Teams may not be aligned around the same goals.
• Counter measure: Use Hoshin Kanri to align goals across departments and ensure collaboration.

3. Unrealistic or Vague Goals

• Problem: Vague or overly ambitious goals make tracking progress difficult.
• Counter measure: Set SMART goals that are realistic and time bound.

4. Failure to Identify Risks

• Problem: Ignoring risks can lead to missed opportunities or lost account.
• Counter measure: Utilize regular SWOT analyses and Root Cause Analysis to identify and mitigate risks.

5. Inconsistent Execution

• Problem: Lack of accountability leads to failure in execution.
• Counter measure: Implement Standard Work and Visual Management tools for consistent execution.

Critical Metrics for Successful Account Planning

Tracking the right metrics ensures your account planning aligns with both business goals and customer needs.

1. Revenue Growth

• Why It’s Important: Indicates success in capturing value from the account.
• What to Track: Year-over-year (YoY) growth, revenue targets, contribution to overall sales.

2. Profitability / Gross Margin

• Why It’s Important: Ensures the account is financially sustainable.
• What to Track: Gross profit margin, Cost of Goods Sold (COGS), profitability trends over time.

3. Customer Lifetime Value (CLTV)

• Why It’s Important: Helps prioritize accounts for long-term growth.
• What to Track: Total projected revenue, account retention rate.

4. Customer Retention / Renewal Rate

• Why It’s Important: Retaining customers is cost-effective and signifies strong relationships.
• What to Track: Percentage of accounts renewed, retention trends, churn rate.

5. Account Penetration

• Why It’s Important: Measures how well you're maximizing opportunities within the account.
• What to Track: Number of products/services sold, share of customer spend.

6. Customer Satisfaction / NPS

• Why It’s Important: Illustrates health of the customer relationship.
• What to Track: Customer Satisfaction (CSAT) scores, Net Promoter Score (NPS), customer feedback.

7. Sales Cycle Length

• Why It’s Important: A shorter cycle is cost-efficient and accelerates revenue.
• What to Track: Time to close sales, bottlenecks in the process, velocity through the opportunity funnel.

8. Pipeline Health / Sales Opportunities

• Why It’s Important: Indicates future revenue potential and the health of ongoing opportunities.
• What to Track: Number of active sales opportunities, total value of deals in the pipeline, win rate, quote rate.

9. Cost to Serve

• Why It’s Important: High service costs can erode profitability.
• What to Track: Direct service costs, operational expenses, profit margins after service costs.

10. Engagement with Key Decision-Makers

• Why It’s Important: Regular contact with key stakeholders ensures solutions align with evolving needs.
• What to Track: Number of engagements with decision-makers, communication frequency, relationship depth across departments.

Optimizing Account Retention and Reducing Customer Churn

Account retention is pivotal for building long-term, profitable relationships. Retaining existing customers is often more cost-effective than acquiring new ones, and loyal customers tend to spend more overtime. Here's how to optimize retention and reduce churn:

1. Develop Deep Customer Insights

• Why It Matters: Understanding your customer's business goals and pain points positions you to offer relevant solutions.
• Action: Use VOC tools to gather feedback on customer experiences and evolving needs.
• Tactics: Conduct regular account reviews. Use surveys and interviews to identify challenges. Map out key decision-makers to ensure robust relationships.

2. Set Clear, Measurable, and Time Bound Goals (Hoshin Kanri)

• Why It Matters: Alignment prevents missed opportunities to broaden and deepen relationships.
• Action: Use Hoshin Kanri for strategic alignment between internal teams and customer objectives.
• Tactics: Set SMART goals focused on retention. Align all teams and create customer transparency internally. Collaborate with the customer on milestones and KPI’s.

3. Provide Proactive and Personalized Customer Support

• Why It Matters: Proactive service prevents issues from escalating.
• Action: Implement a system of proactive communication and problem-solving.
• Tactics: Schedule regular check-ins. Use data insights to anticipate needs. Assign dedicated account managers for personalized support.

4. Enhance Product/Service Adoption

• Why It Matters: Full adoption leads to greater customer satisfaction and retention.
• Action: Ensure customers are trained and supported to maximize product use.
• Tactics: Offer training and onboarding programs. Share updates and best practices. Provide case studies illustrating success.

5. Leverage Data and Analytics

• Why It Matters: Monitoring usage helps identify and address disengagement.
• Action: Implement customer health scores tracking engagement and risk factors.
• Tactics: Use CRM analytics to monitor behavior. Identify at-risk accounts and develop retention strategies. Set up alerts for signs of disengagement.

6. Offer Value-Added Services

• Why It Matters: Continuous value beyond the sale encourages loyalty.
• Action: Provide additional insights, support, or strategic advice.
• Tactics: Offer quarterly business reviews. Share industry insights and recommendations. Provide exclusive access to new features.

7. Build and Strengthen Relationships (Go To Gemba)

• Why It Matters: Personal relationships increase trust and loyalty.
• Action: Use Gemba Walks to build rapport and gain firsthand insights.
• Tactics: Visit customers regularly. Engage multiple stakeholders. Customer your approach to customer preferences.

8. Respond to Customer Feedback (PDCA Cycle)

• Why It Matters: Quick responses show commitment to improvement.
• Action: Implement the PDCA cycle to act on feedback swiftly.
• Tactics: Create feedback loops. Develop improvement plans based on feedback. Communicate changes back to the customer.

9. Measure and Improve Customer Satisfaction (CSAT and NPS)

• Why It Matters: Gauging satisfaction helps address retention risks.
• Action: Regularly measure satisfaction using CSAT and NPS surveys.
• Tactics: Conduct periodic surveys. Monitor NPS for likelihood to recommend your products and services. Address dissatisfaction directly.

10. Reward Loyalty and Build Long-Term Partnerships

• Why It Matters: Rewarding loyalty strengthens brand connection.
• Action: Develop loyalty programs.
• Tactics: Offer incentives like discounts or early access. Host appreciation events. Provide co-marketing opportunities.

Strategies for Reducing Customer Churn

High customer churn indicates dissatisfaction or unmet expectations. Addressing churn requires understanding root causes and continuously improving engagement.

1. Understand the Root Causes of Churn

• Action: Conduct exit interviews and surveys with customers who leave.
• Tactics: Use the 5 Whys to dig deeper. Analyze and chart churn trends. Track complaints and negative feedback.

2. Enhance Onboarding and Product Adoption

• Action: Develop a robust onboarding process.
• Tactics: Offer personalized training. Provide comprehensive resources. Use analytics to monitor early engagement.

3. Increase Proactive Customer Engagement

• Action: Establish regular communication touchpoints.
• Tactics: Conduct quarterly business reviews. Assign dedicated account managers. Identify at-risk customers through data.

4. Deliver Consistent Value

• Action: Communicate the measurable impact of your product.
• Tactics: Provide detailed performance reports. Highlight new features and success stories. Offer strategic recommendations.

5. Improve Customer Support and Service Quality

• Action: Invest in efficient and personalized support.
• Tactics: Implement self-service tools. Train support teams for empathetic resolution. Monitor and improve service levels.

6. Measure and Improve Customer Satisfaction (CSAT and NPS)

• Action: Use surveys to gauge satisfaction.
• Tactics: Send periodic CSAT and NPS surveys. Follow up with low scorers promptly. Use feedback to improve offerings.

7. Create Loyalty Programs and Reward Retention

• Action: Develop loyalty programs with tangible benefits.
• Tactics: Offer tiered rewards. Provide renewal incentives. Recognize customers through special events.

8. Address Product and Service Gaps

• Action: Use feedback to improve your offerings.
• Tactics: Conduct regular satisfaction surveys. Analyze underutilized features. Develop a responsive product roadmap.

9. Analyze Churn Data to Identify Trends

• Action: Examine churn data for patterns.
• Tactics: Pareto data to identify root causes. Monitor churn by usage patterns. Develop prediction models for early intervention.

10. Build Strong Relationships with Key Stakeholders by Going to Gemba

• Action: Strengthen connections with decision-makers.
• Tactics: Regularly meet to discuss goals and challenges. Engage multiple contacts within the organization. Offer customized solutions aligning with objectives.

Final Thoughts

Effective account planning is a dynamic, continuous process that requires a disciplined, data-driven approach. By leveraging the tools and methodologies within DBS like ?VOC, Hoshin Kanri, PSP, and the PDCA cycle, you can create strategic account plans that deliver sustained value for both your customers and your business.

Addressing common challenges like poor internal alignment, lack of customer insights, and inconsistent execution is essential for success. By tracking critical metrics such as revenue growth, profitability, customer satisfaction, and engagement, your account plans will remain aligned with customer needs and business objectives.

The combination of structured tools, continuous improvement, and measurable outcomes not only strengthens relationships but also creates opportunities for upselling, cross-selling, and deeper customer engagement. When executed effectively, account planning becomes a powerful driver for share gain and long-term success for both your organization and your customers.

Tim Cutts is a results- driven executive.? His 30 years of experience in industries like machine vision, motion controls, factory automation, and worker and workplace safety have given him a uniquely broad and deep understanding of strategic growth.? His passion lies in creating organizations and teams; he loves leading value creation and taking share.? He lives in Frisco, Texas with his wife, Kristin.

? 2024 Tim Cutts, All rights reserved