Mr. Muhamed Muneer

Whoever said small and medium businesses cannot build national accounts?

Suppose yours is a small firm or division, and you suspect you have the prospect base for a national accounts programme. But you wonder how to get started in an environment of tight budgets, multiple priorities and limited staff.

The good news is that it can be done. The first two points sound obvious but are critical. First, much of the key activity, including some of the customer contact, needs to be generated from corporate marketing. Few sales reps can sustain the long-term, data-oriented company perspective required by national accounts.

Second, define national accounts properly. They should be high-volume accounts whose characteristics make them highly responsive to corporate-level attention. They frequently cross traditional sales territories and demand special policies from your company in addition to discounted pricing. Being clear on definition prevents the national accounts programme from becoming just another way for salespeople to win discount concessions from management for individual customers.

With these ideas in mind, consider the following:

 * Pick a small committed team to direct the programme. Some people like the more complex relationship work of national accounts; others do not.  In the early stages, select a few people in your firm with the proper motivation and presentation skills and allow this group to spend a percentage of its time building a programme.

Start with a sales manager, an inside marketing assistant and the top corporate marketing officer. You will begin without investing in a costly permanent staff, and keeping the initial team small enhances co-ordination and breeds strong sponsors for the programme as success builds.

* Find your first prospects in your own backyard. You want to show some early success as well as promise of future activity. After listing the obvious candidates, look through old customer files and records and interview experienced reps and employees. These sources may uncover companies with which your firm once dealt on a national account or favoured basis.

Then turn to a systematic review of your customer list and lead data base. You probably will be surprised at some of the big names already there, though your sales to them may be insignificant. You can extrapolate from his research similar customers or market segments that bear investigation for more national accounts prospects.

* Set up an organised process. Divide primary responsibility for researching prospects, narrowing lists, sending a personalised direct mail package with samples, telephoning to qualify leads, and presenting on-site demonstrations and proposals. Establish a simple PC data base to track prospects. A more elaborate national accounts identification system can be added to your mainframe customer file. The latter step can be particularly important if your customers make multiple transactions with you for, as an example, aftermarket supplies.   You want to ensure that national accounts consistently get their proper pricing and can be recognised as important customers by employees who will be dealing with them. If one store in a large chain has been told by its corporate HQ that it has favoured status with your firm, that store expects you to recognise it.  

 * Decide policies on which you can be flexible and product/programme enhancements that you can offer. You want to give these major accounts more than a lower price. Look for other services or extras to bundle with your product. An extended warranty package with special features is an example.    Also, such accounts often will seek more favourable terms or different levels of support. How far are you, and colleagues in different departments, willing to go and in return for what?  

 * Create a compensation programme that makes your outside sales force a partner. This may sound straightforward, but if you want your reps referring leads and assisting in selling national accounts, they have to know they will be treated fairly.

Examine the issues of house accounts, credit for split shipments, and other issues that arise from large and diverse customers to see how you can resolve them in favour of the rep. You might want to eliminate house accounts and offer a small percentage override on the entire sales of a chain to the "home" rep, who has the headquarters location where all negotiation, but no buying occurs.

Following these ideas, you too can build national accounts in no time. And, the best time to start is now when the sales are not too brisk.

(By arrangement with Innovative Media)

Feedback and queries may be e-mailed to him directly at muneermuhamed@hotmail.com