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STAMFORD, Conn, March 22, 2021

Gartner Says COVID-19 Significantly Impacted 41% of Key Customers’ Spending with B2B Sales Organizations

New Research Identifies Four Actions CSOs Must Take to Better Ensure Key Account Success in 2021

Forty-one percent of key customers (also known as key accounts) indicated that the economic implications of COVID-19 significantly impacted their spend with B2B sales organizations, according to Gartner, Inc. A Gartner survey of 618 B2B key customers, conducted from November through December 2020, revealed that while some key customers increased spending with B2B sales organizations, only 18% indicated a spending increase of more than 10% since January 2020.

“Chief sales officers (CSOs) have long struggled to ensure their key accounts perform according to expectations – in fact, 53% of key customers purchased less than half of their supplier’s total offerings in 2020,” said Robert Blaisdell, senior director analyst in the Gartner Sales practice. “After facing a prolonged period of market disruption and conservative customer decision making, CSOs are looking for realistic growth revival strategies for 2021 and placing increased importance on their most strategic relationships. As a result, really nailing key account management in 2021 will be a top priority.”

CSOs should implement the following four actions in order to tap into the full potential of their key accounts in 2021:

1)     Renew Focus on the Key Account Value Proposition

The key account value proposition provides a compelling way to communicate the unique benefits that key customers receive in return for investing the time and effort required to partner at a deeper, more strategic level. However, CSOs should not assume customers implicitly know they’re a key customer or understand the value proposition of being one. This assumption results in misaligned internal stakeholders and disjointed customer expectations.

Gartner research shows that 79% of key customers who had a clear understanding of the benefits available to them from the relationship provided their supplier with benefits in return – including increased access to senior executives and more visibility into business strategy. Leading sales organizations reinforce the key account value proposition by embedding it in account plans, internal review sessions and joint planning discussions with customers.

2)     Pursue Growth Through Collaborative Partnerships

Most sales organizations struggle to evolve beyond simply selling to engage in “collaborative partnerships.” In fact, once in a strategic partnership, only 40% of key customers report their supplier puts a clear focus on potential growth. However, leading sales organizations that keep their short-term goals in context and engage in longer-term partnerships focused on customer growth reap significant benefits.

Sixty-nine percent of key customers who said they collaborated with their supplier to determine shared goals of the relationship found the supplier more effective in aligning its strategy with their objectives. CSOs should look to transform joint planning/performance reviews into more forward-looking sessions with active customer participation centered on improving the customer’s business outcomes.

3)     Guide Customers Through Digital Touchpoints

With the rapid shift to virtual and digital engagement due to COVID-19, virtual buying is no longer perceived as a short-term trend – as a result, key customer engagements and interactions will evolve, too. Forty percent of key customers said they would prefer most or all of their post-pandemic interactions with suppliers to remain virtual. However, less than half (48%) agreed that their suppliers provided clear guidance on the best virtual touchpoints to use.

Gartner research reveals a new reality in which suppliers need to recognize the value and importance that complimentary virtual/digital touchpoints can bring to their most strategic customers. CSOs should equip their organizations to cater to new touchpoint preferences and arm customers with the resources to exploit the new touchpoints effectively.

4)     Reinforce the Growth-Focused Role of Key Account Manager

Only 7% of key customers view their key account manager as a business-growth-focused advisor to their organization. Instead, more than 40% say their key account manager is a tactical-focused coordinator of day-to-day activities.

In order to improve key account retention and growth, CSOs must ensure that their key account managers are consistently engaged in improving key customers’ business outcomes and providing proactive guidance to help customers identify and pursue their own goals.

Gartner for Sales Leaders clients can learn more in “4 Actions CSOs Must Take to Engage Key Accounts.”

 

About the Gartner CSO & Sales Leaders Conference

Sales leaders face unprecedented changes in B2B buying behaviors, customer expectations, technology and the talent needed to drive results. At the Gartner CSO & Sales Leader Conference, taking place virtually on May 17-18, 2021, sales leaders will learn from the latest research and Gartner experts covering sales talent, customer buying behavior, account-based marketing strategies and leveraging digital channels. Follow news and updates from the event on Twitter at #GartnerSales.

 

About Gartner for Sales Leaders

Gartner for Sales Leaders provides heads of sales and their teams with the insights, advice and tools they need to address mission-critical priorities amid mounting pressures to drive growth through new and existing customers. With extensive qualitative and quantitative research, Gartner for Sales Leaders helps sales teams combat commoditization and price-based purchasing, develop critical manager and seller skills, elevate the value of sales interactions, unlock existing growth potential, and optimize sales force enablement. Follow news and update from the Gartner Sales practice on Twitter and LinkedIn using #GartnerSales.

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About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.