MCI Communications Corporation: National Accounts Program (Condensed)

Frank V. Cespedes

Case | HBS Case Collection | October 1992 (Revised October 1993)

MCI Communications Corporation: National Accounts Program (Condensed)

Abstract

Concerns the early stages of a major-account program at MCI, a telecommunications firm seeking to penetrate the corporate-account market. Among the issues are: 1) coordination of field sales efforts with national account selling efforts; 2) sales strategy for major accounts; and 3) core sales-management decisions: the selection of account teams, demarcation of account responsibilities, compensation plans, and training issues.

Keywords: Accounting; Decision Choices and Conditions; Training; Compensation and Benefits; Management Practices and Processes; Marketing Strategy; Groups and Teams; Sales;

Format: Print

18 pages

Find at Harvard

Citation:

Cespedes, Frank V. "MCI Communications Corporation: National Accounts Program (Condensed)." Harvard Business School Case 593-044, October 1992. (Revised October 1993.)

Common advice in sales is to provide insights to customers during sales calls. But this advice generally stays at the level of “tell people something they don’t already know” and results in sales conversations littered with many irrelevant factoids. This article provides examples of how salespeople develop and deliver resonant insights in customer conversations and why the framing of insights depends upon to whom they are talking and when in the sales cycle.

Most research and training in sales focus on acquiring new customers. But winning back previous customers is increasingly important: mergers, choice in supply chains, and uncertainty about trade wars mean that B2B customers are constantly re-evaluating relationships with suppliers and making changes. Meanwhile, large buyers account, on average, for over 25% of revenues at publicly traded firms, up from 10% in the 1980s. This article discusses how and why the process for reacquiring lost customers requires a different approach than acquiring new ones and illustrates the process and its implications via a case example.

Fred Shilmover and Sam Clemens prepared for their fourth quarter board meeting. They were excited to have scaled their software startup, InsightSquared, to $2 million in revenue and secured an $8 million round of venture capital. However, they disagreed on the path ahead, specifically on the sales and marketing plan. Shilmover preferred a sales-centric approach to growth while Clemens preferred a marketing-centric one. Which strategy was optimal for their venture’s next phase of growth?

Faculty & Research

MCI Communications Corporation: National Accounts Program (Condensed)

Abstract

Citation:

About the Author

More from the Author