Increasing Revenue by 20% with Account Management

Company Overview

Academy Smart, established in 2009, is a Ukrainian IT service company specializing in software development for EdTech startups. Over the years, the company has expanded its expertise to include a variety of web, mobile, and cloud services, primarily serving markets in Israel and the European Union. In recent years, Academy Smart has been striving to establish independent marketing, sales, and business development processes to reduce dependence on their partners. The company aims to transition from an “order taker” vendor to a strategic technical partner.

Challenges Faced

•Low Margin Projects: Most of Academy Smart’s long-term project clients were acquired through its business partner, resulting in slim margins. The company also struggled to identify growth opportunities with these existing clients, further impacting profitability.

•Lack of In-depth Client Knowledge: The company did not have a deep understanding of their clients’ future needs and the technologies or services they would require. This knowledge gap hindered the development of strategic customer plans and the identification of potential growth opportunities.

•No Dedicated Account Management (AM) Role: Without a dedicated AM function, the sales team managed existing client relationships through sporadic communication. Their primary focus on achieving KPIs for new projects left little time to build deeper client relationships and understand evolving client needs.

•Impossible to Forecast Revenue from Business Development: There was a solid revenue stream from both new and existing clients. Without segmenting this revenue, it was difficult to measure the performance of business development activities, impeding effective planning and resource allocation within the sales department.

•Positioned as a “Bodyshop Provider”: Staffing was the primary service but not the only one. The absence of a strong business development function prevented them from positioning themselves as a technical partner for new clients, making it challenging to build long-term relationships and secure ongoing project opportunities.

Advising Objectives

•Establish a Dedicated Account Management Role and Processes: Implement a dedicated AM role to manage client relationships effectively.

•Identify and Seize Growth Opportunities with Existing Clients: Develop strategies to uncover and capitalize on opportunities within the existing client base.

•Align Account Management with Sales and Delivery Processes: Ensure seamless integration between AM, sales, and delivery functions.

•Evolve from a “Body Shop” to a Strategic Technical Partner: Transition the company’s positioning to become a trusted technical partner for clients.

Advising Roadmap

1. Establish a Dedicated Account Management Role and Processes:

•Role Definition: Clearly define the AM role, responsibilities, and authority.

•Process Development: Develop and implement AM processes, including client segmentation and engagement strategies.

•Team Formation: Select and train individuals for the AM role.

2. Identify and Seize Growth Opportunities with Existing Clients:

•Client Segmentation: Segment clients based on potential for growth and strategic importance.

•Opportunity Identification: Conduct regular reviews to identify upsell and cross-sell opportunities.

•Strategic Planning: Develop account development plans for high-potential clients.

3. Align Account Management with Sales and Delivery Processes:

•Process Integration: Ensure AM processes are integrated with sales and delivery workflows.

•Communication Channels: Establish regular communication between AM, sales, and delivery teams.

•Performance Metrics: Define and track KPIs to measure the effectiveness of AM activities.

4. Evolve from a “Body Shop” to a Strategic Technical Partner:

•Value Proposition Development: Develop and communicate a clear value proposition as a technical partner.

•Client Engagement: Engage clients in strategic discussions to understand their long-term needs.

•Service Enhancement: Enhance service offerings to align with client strategic goals.

Results Achieved

•Revenue Growth: Achieved a 20% increase in quarterly revenue compared to the previous period.

•Upsell Rate Increase: Increased the upsell rate by 5% in the first quarter.

•Client Retention: Prevented the loss of a client who ultimately remained satisfied with the service.

•Forecasting Capability: Established the ability to set upselling targets and forecast revenue from business development.

•Positioning Enhancement: Transitioned from a “body shop” to a strategic technical partner.

These outcomes were driven by the establishment of a dedicated AM function, strategic client engagement, and alignment of AM with sales and delivery processes.