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You are here: Home1 / Newsroom2 / Articles3 / Utilizing Best Practices in National Account Management

Utilizing Best Practices in National Account Management

Articles, Pricing, Sales Execution, Trade Promotion
national account management

National account management plays a vital role in the three-tier alcohol distribution model, encompassing the management and coordination of relationships between suppliers, distributors, and national account customers. This article explores the concept of national account management, its significance, and the challenges it faces in the industry.

What is National Account Management?

National account management focuses on establishing and nurturing partnerships with key national account customers, including major retail chains, hotels, restaurants, bars, and other businesses with extensive geographic presence and significant purchasing power. It involves strategic sales and marketing initiatives, contract negotiation, pricing management, regulatory compliance, and revenue growth. Moreover, it entails understanding each customer’s unique requirements, developing tailored business plans, and creating strong relationships to maximize sales and market share.

Challenges in National Account Management

Successful national account management within the three-tier alcohol system requires overcoming various challenges. They include:

  • Budgeting
  • Pricing
  • Compliance and Accountability
  • Communications

Let’s explore these key hurdles and how modern best practices are addressing them:

Budgeting

Challenge: Accessing distributor account-level sales data (RAD) is difficult, hindering the estimation of depletion allowances and price support spending in the budget process. Lack of insight into local activities and their costs also poses challenges.

Best Practices: Today, advanced National Account Management solutions offer enterprise-level budget planning, providing visibility down to the market level with invoices and actual sales data. This allows for accurate spend planning, securing budget approvals, and monitoring execution in collaboration with distributor partners.

Pricing

Challenge: Ensuring pricing consistency across markets has historically been a challenge, with misalignment between suggested pricing and actual prices paid.

Best Practices: Modern solutions leverage daily invoice-level data to validate delivered product prices against quoted pricing. This enables timely responses to pricing issues and promotes better pricing accuracy.

Compliance and Accountability

Challenge: Timely access to account-level sales data and compiling intelligent business reviews are challenging due to lagging distributor data. 

Best Practices: Advanced technology now facilitates the connection between authorizations and account-level sales data, enabling visibility into mandated product sales. Exception reporting highlights non-compliance, allowing sales teams to hold accounts and distributors accountable. This encourages productive business reviews with actionable data and dashboards.

Communication

Challenge: Traditional communication methods involving multiple phone calls, emails, and voicemails lead to confusion and misunderstandings. 

Best Practices: Modern communication tools consolidate compliance data, distribution, sales, and activities into comprehensive digital reporting dashboards. Scheduled reports can be delivered to the field, distributors, and trade partners via email in various formats, ensuring effective and streamlined communication.

Conclusion: 

National account management is essential in the three-tier alcohol distribution model, enabling strong partnerships with key customers and driving business growth. 

Overcoming challenges related to budgeting, pricing, compliance, and communication requires adopting modern best practices and leveraging advanced technology. Follow these Best Practices like the successful wineries working with us at  Andavi Solutions. By utilizing GreatVines – Sales Management and Tradeparency – Promotion and Price Management Solutions, companies enhance their national account management strategies and achieve success in this dynamic industry.

 

by Andavi Marketing
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Related Articles 3-tier, Best Practices, challenges, Distribution, Information, national account management, Pricing Strategy, Promotion, Sales, Sales Execution, Sales Strategy, Technology, trade promotion
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