CASE STUDY FOR ACCOUNT MANAGEMENT

Pranay Jha

Contents

Industry Overview Classification of Sellers Account Management Team

Team

structure KPI of the team

Enablers for sales Seller Engagement Performance management Reports & Tools

Industry Overview
India E commerce industry recording a phenomenal growth rate of 50% in the last five years
Growth Drivers: Industry :Growing investments by VC & PE USD 305 million in 2011 against USD 55 million in 2010 Internet penetration: Internet user base to increase to 300 million by 2015 Payment: Number of credit and debit cards to reach 73.7 and 350.4 million respectively in 2014

The e-tailing industry is gravitating towards marketplace model

No FDI in retail has stopped foreign players to actually own inventory Market place model reduces pressure on working capital

Market-place model : Characteristics and Challenges

Network effect : Increase in no. of sellers brings more customers to the site and vice-versa in a virtuous cycle. First past a critical mass will dominate The stress is on seller and customer acquisition for all the e-tailing sites. The aim is to find as huge and diversified base as possible. Challenges of market place model : Tough to ensure uniform standard of customer service . Sellers another group of stakeholders to be taken care of other than customers. Need to be developed. Diversification needed to avoid dependence on few sellers. These are the challenges to be addressed by the Account Management Team at Snapdeal
Seller classification Account Mgmt Team Enablers for sales Seller Engagement Performance Mgmt Reports & Tools

Overview

Classification of Sellers
Sellers can classified into Key Accounts and Non Key Accounts based on the below parameters. Accounts are upgraded to Key Accounts if all cutoffs are cleared. Parameter Key Accounts Non Key Accounts Gross Sales Value (monthly) More than Rs 1,00,000 Less than 1,00,000

No of transactions
Seller Ratings

More than 1000

More than 4

Less than 1000

Less than 4

Assumptions : Seller ratings factor in quality of cataloguing and customer service record Incentive scheme for Key Accounts : Loyalty club to be created for Key Accounts. Points being added according to Sales Value, which can be redeemed for gifts later. Will create an aspiration for accounts to be promoted to Key Accounts.
Overview Seller classification Account Mgmt Team Enablers for sales Seller Engagement Performance Mgmt Reports & Tools

AMT Structure
Lead -AMT

Fashion AH

Electronics AH

Others

AM

AM

AM

AM

AM

AM

Apparel Footwear Handbags /Sunglasses Jewelry Watches Beauty Accessories

Seller classification

Mobile Phones Computer Hardware Cameras Electronic Accessories Home Appliances Other Appliances

Furniture & Furninshing Auto accessories Toys & Kidswear Health Sports and Fitness Books and hobbies

Overview

Account Mgmt Team

Enablers for sales

Seller Engagement

Performance Mgmt

Reports & Tools

KPIs - Account Management Team

Objectives of the team 1) Increase the seller base 2) Increase total sales 3) Ensure seller satisfaction 4) Ensure quality of customer service

Seller Management
KPI for Account Manager
No of accounts upgraded to Key Accounts 20% Avg seller score 10% Seller satisfaction score 10%

Sales

Gross Sale Value in category 30%

No of seller in category 20%

No of listings per seller 10%

Overview

Seller classification

Account Mgmt Team

Enablers for sales

Seller Engagement

Performance Mgmt

Reports & Tools

Enablers to increase sales

Increa se Sellers Geographical Spread Acquire manufacturers/artisans No of SKUs per seller listed

Increasing Sales
Seller Manag ement

Promotion al Activities

Discounts/ Schemes Visibility on homepage/ category page Schemes for sellers

Inventory Management Product Development Sales Analytics Better catalogue Customer Service Pricing
Enablers for sales Seller Engagement Performance Mgmt Reports & Tools

Overview

Seller classification

Account Mgmt Team

Seller engagement
Share best practices Showcase Snapdeal success stories

On-ground engagement
Seller meets

At industry specific fairs/expo events to educate about Snapdeal

On ground activation

Consultative Online Seller clubs/forums webinars Digital engagement

Increasing seller scores On-boarding of new sellers
Sharing of best practice Sharing of industy-specific trends and news
Account Mgmt Team Enablers for sales Seller Engagement Performance Mgmt Reports & Tools

Overview

Seller classification

Performance management
GS 1 MS M HY R

AR

2 3 4 5 6 7 8 9 10 11 12 Performance review system Goal Setting Process (GS) : Each team member will receive his goals post discussion and confirmation at he start of the financial year. Monthly Sales Meet (MSM) : Each team member is reviewed for last months performance and next month planning is done Half Year Review : One-to-one documented discussion with team members about performance and appraisal Annual Review : One-to-one documented discussion with team members. Final performance ratings Rewards and Recognition Star Performer of the month/quarter/year : Monthly recognition and incentive for the best performer among the account managers
Overview Seller classification Account Mgmt Team Enablers for sales Seller Engagement Performance Mgmt Reports & Tools

Reports and tools

Daily Sales Tracker-Completed sales Weekly tracking Account-wise No. of SKUs listed Weekly tracking- SKU-wise No of page visitors Weekly tracking- SKU-wise price comparison of accounts Monthly tracking- Monthly sales target v/s achievement Monthly tracking- No. of sellers added Monthly tracking- Seller score Monthly tracking- Seller satisfaction score

Overview

Seller classification

Account Mgmt Team

Enablers for sales

Seller Engagement

Performance Mgmt

Reports & Tools

Thank You