CSE CSE Territory Management & Account Planning 2 — Questions and Answers
Question 1: An account plan for a strategic customer should include which of the following elements?
- A history of all sales rep turnover for the account
- Account goals, key stakeholders, competitive landscape, and action plans to grow the relationship (Correct answer)
- A list of all competitor pricing strategies
- An analysis of global macroeconomic trends
Correct answer: Account goals, key stakeholders, competitive landscape, and action plans to grow the relationship
A comprehensive account plan documents the customer's goals, maps key decision-makers, identifies competitive threats, and outlines specific actions to expand the relationship.
Question 2: What does 'share of wallet' mean in the context of key account management?
- The percentage of a customer's budget spent on your products versus competitors' products (Correct answer)
- The total number of products a customer has purchased from you
- The gross margin percentage earned from an account
- The average payment terms negotiated with a customer
Correct answer: The percentage of a customer's budget spent on your products versus competitors' products
Share of wallet measures what proportion of a customer's total spending in a category goes to your company, indicating how much room exists to displace competitors.
Question 3: When reassigning territories after a sales rep departs, the FIRST priority should be:
- Hiring a replacement as quickly as possible
- Ensuring continuity of coverage for high-value and at-risk accounts (Correct answer)
- Redistributing the territory evenly among all remaining reps
- Updating CRM ownership fields for all accounts
Correct answer: Ensuring continuity of coverage for high-value and at-risk accounts
Protecting strategic and at-risk accounts from service gaps is critical to preventing revenue loss during the transition, and should precede administrative CRM updates.
Question 4: A sales executive is building a territory plan. Which data source provides the BEST view of total addressable market (TAM) within the territory?
- Internal CRM historical closed deals
- Third-party firmographic data combined with industry market sizing reports (Correct answer)
- Customer satisfaction survey results
- Sales rep self-reported prospect lists
Correct answer: Third-party firmographic data combined with industry market sizing reports
Third-party firmographic data (company size, industry, revenue) combined with market sizing reports provides an objective view of total potential demand in the territory beyond current customers.
Question 5: What is the purpose of a mutual success plan (also called a joint success plan) in key account management?
- To document the financial terms of a sales contract
- To align both the customer and vendor on shared goals, milestones, and responsibilities for achieving outcomes (Correct answer)
- To outline the vendor's internal sales targets for the account
- To replace the need for regular account review meetings
Correct answer: To align both the customer and vendor on shared goals, milestones, and responsibilities for achieving outcomes
A mutual success plan creates a shared commitment document that aligns the customer's business goals with the vendor's deliverables, strengthening partnership and retention.
Question 6: Which territory management practice BEST supports accurate annual quota setting?
- Assigning the same quota to all sales reps regardless of territory
- Using territory potential assessments and historical performance data to set differentiated quotas (Correct answer)
- Basing quotas solely on the previous year's revenue with a fixed growth percentage
- Setting quotas at the start of each month based on pipeline size
Correct answer: Using territory potential assessments and historical performance data to set differentiated quotas
Differentiated quotas based on territory-specific potential and historical data ensure fairness and realism, reducing over- or under-assignment that hurts rep motivation and company revenue.
CSE CSE Territory Management & Account Planning 2
An account plan for a strategic customer should include which of the following elements?