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An Executive Sponsor Program is a strategic initiative designed to foster high-level relationships between a company's executives and its key customers. The Exec Sponsor program is not a reactive measure to save accounts. Instead, it's a proactive approach to building and strengthening relationships, increasing customer satisfaction, reduce churn, and ultimately driving revenue growth.
The Importance of an Executive Sponsor Program
Several studies suggest that organizations with diverse leadership teams tend to enjoy above-average profitability. Thus, cultivating a diverse pipeline of leaders through sponsorship programs can significantly enhance a company's performance. Executive Sponsor Programs have been found to increase the likelihood of advancement amongst participants. They also contribute to higher retention rates, making them a valuable tool in talent management.
Key Components of an Effective Executive Sponsor Program
Creating a successful Executive Sponsor Program involves careful planning and execution. Here are the four fundamental elements that form the backbone of any effective ESP:
- Program Ownership: The program must be spearheaded by a key executive who can communicate its strategic importance to the entire organization.
- Selecting the Accounts: Not every account qualifies for an ESP - the program should be reserved for the most valuable accounts, considering factors like strategic value, current revenue, account retention, and growth potential.
- Matching Executive Sponsors to Accounts: The matching process is critical and should consider factors like cultural compatibility, executive style, existing relationship, relevant market expertise, and more.
- Role Definition: The role of the executive sponsor must be clearly defined - they should not replace the account manager but should help build their credibility.
- Measurement: The program's success must be tracked using Key Performance Indicators (KPIs) that focus on building relationships, enhancing customer satisfaction, and enabling business growth.
Implementing an Executive Sponsor Program
Implementing an ESP involves several steps, each crucial to the program's overall success.
Step 1: Know Your Customer Base
Understanding your customer base is the first step in building an effective ESP. This involves more than just knowing the number of customers or the industries they belong to. In the context of an ESP, it's crucial to understand who your top customers are, their potential for account expansion, their overall health, and whether any existing C-level relationships can be leveraged.
Step 2: Identify and Assign Your Top Accounts
Once you have a comprehensive understanding of your customer base, the next step is to identify the top accounts and assign them to the appropriate executive sponsors. Remember, the maximum number of accounts that a team can handle effectively is 3-5.
Step 3: Develop a Playbook
Structure is key to the success of an ESP. A playbook that outlines the objectives, roles, responsibilities, and measures of success can serve as a valuable guide for everyone involved. You should develop these playbooks for account management, sales, and customer success.
Step 4: Tracking and Meetings
An ESP requires regular tracking and meetings to ensure its effectiveness. Having a reporting system in place and conducting mandatory bi-weekly meetings can help keep the program on track.
Tips for a Successful Executive Sponsor Program
Here are some tips that can help ensure the success of your ESP:
- Re-balance the program every quarter by adding or removing customers based on their progress.
- Start with small goals, focusing on relationship-building initially.
- Regularly analyze numbers and deliver visual reports to the team.
- Ensure alignment between the Account Executive and the assigned Exec.
- Leverage additional executives for problem-solving when necessary.
