What is the Difference Between a Sales Strategy and a Sales Tactic?

What is the Difference Between a Sales Strategy and a Sales Tactic?

By

Simon Hazeldine

When I am working with key account managers and account managers helping them to create effective Key Account Development Plans, I recommend that they include an M.O.S.T. plan.

This acronym stands for:

Mission
The longer-term strategic vision for the value and status of the account in X years

Objectives
Working backwards from the mission, what are the key objectives or milestone markers to be achieved in the next (for example 1,2,3 years)

Strategies
How you will achieve the key objectives

Tactics
The specific actions you will take


In the context of a Key Account Development Plan, strategies and tactics serve distinct yet complementary roles. Strategies are the broad, long-term objectives that guide the overall approach, while tactics are the specific, actionable steps that help achieve these objectives.

Below are examples that illustrate the difference between strategies and tactics in a Key Account Development Plan:

Example 1: Strengthening Relationships with Key Decision-Makers

  • Strategy: Build and deepen relationships with key decision-makers to foster trust and long-term collaboration.

  • Tactics:
    • Schedule quarterly executive business reviews with key stakeholders to review progress, discuss new opportunities, and gather feedback.
    • Organize informal networking events, such as dinners or sporting events, to build personal connections outside the business context.
    • Provide personalized updates on market trends and insights that are directly relevant to their business needs.

Example 2: Expanding Account Revenue through Cross-Selling

  • Strategy: Increase revenue from key accounts by offering complementary products or services (cross-selling).

  • Tactics:
    • Conduct a needs assessment to identify areas where complementary solutions may add value to the client’s existing operations.
    • Develop tailored product demos or case studies that highlight how these complementary solutions can benefit the account based on their specific business challenges.
    • Train the wider key account management team to ask more probing questions during client meetings to uncover cross-selling opportunities.

Example 3: Improving Client Satisfaction and Retention

  • Strategy: Enhance client satisfaction to increase retention rates and develop long-term partnerships.

  • Tactics:
    • Implement a post-project feedback process to gather client insights on service delivery and satisfaction levels.
    • Offer a dedicated customer success manager for each key account to ensure issues are addressed quickly and proactively.

Set up regular performance review meetings to track KPIs and ensure that agreed-upon SLAs (Service Level Agreements) are met or exceeded.

Example 4: Identifying and Developing New Opportunities within the Account

  • Strategy: Identify and pursue new growth opportunities within existing key accounts.

  • Tactics:
    • Use account mapping to uncover potential departments, subsidiaries, or regions within the account that have not yet been tapped for new business.
    • Collaborate with the client on a joint innovation workshop to explore new ideas or unmet needs that could lead to future projects.
    • Monitor news and press releases about the account to identify potential expansion opportunities, such as mergers, acquisitions, or new product lines.

Example 5: Differentiating from Competitors

  • Strategy: Differentiate from competitors by delivering unique value that addresses specific client pain points.

  • Tactics:
    • Provide customized value-add reports and analytics that the client can use for decision-making.
    • Highlight unique case studies or success stories during meetings that showcase the specific results your solutions have delivered.
    • Offer exclusive access to VIP events, early access to new product features, or dedicated support services.

Example 6: Gaining a Better Understanding of Client Needs

  • Strategy: Gain deeper insights into the client’s long-term business objectives to align solutions accordingly.

  • Tactics:
    • Conduct regular stakeholder interviews to understand their evolving business challenges and goals.
    • Implement a detailed client satisfaction survey focused on identifying unmet needs or future projects.
    • Review the client’s annual reports, press releases, and public financial statements to gain a clearer picture of their future strategies.

To summarise the key differences between strategy and tactics:

  • Strategy: Focuses on the “what” and the “why.” It is the overarching goal or objective you are aiming to achieve in the long term.

    Example: Increase the account’s total revenue by 20% over the next 12 months through deeper engagement.

  • Tactics: Focuses on the “how.” Tactics are the specific actions you take to implement the strategy.

    Example: Offer bundled services, conduct regular quarterly reviews, and organize customer education workshops to introduce new services.

Strategies guide the overall direction of your Key Account Development Plan, while tactics are the specific steps or actions that will execute the strategy. Both are essential, but strategies set the goalposts, and tactics define the plays to score.

Useful mantras to remember are: “Strategy before Tactics!” and “Think Strategically, Act Tactically!”

Good luck and good account development folks!

For further information on Key Account Management you may wish to visit the website of the Key Account Management Association.

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About the author

Simon Hazeldine works internationally as a revenue growth and sales performance speaker, consultant, and coach. He empowers his clients to get more sales, more often with more margin.

He has spoken in over thirty countries and his client list includes some of the world’s largest and most successful companies.

Simon has a master’s degree in psychology, is the bestselling author of ten books that have been endorsed by a host of business leaders including multi-billionaire business legend Michael Dell and is co-founder of leading sales podcast “The Sales Chat Show”.

He is the creator of the neuroscience based “Brain Friendly Selling”® methodology.

Simon Hazeldine’s books:

  • Neuro-Sell: How Neuroscience Can Power Your Sales Success
  • Bare Knuckle Selling
  • Bare Knuckle Negotiating
  • Bare Knuckle Customer Service
  • The Inner Winner
  • How To Lead Your Sales Team – Virtually and in Person
  • Virtual Selling Success
  • How To Manage Your People’s Performance
  • How To Create Effective Employee Development Plans
  • Virtual Negotiation Success


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