Additionally, keep track of non-key accounts. When that happens, there’ll be too many “key” accounts to manage. The key to eliminating strategic account defections is to become essential to your customers. Key account management 2. At some point, most company leaders have looked at their list of best clients and thought, "It would be really bad if we lost any of these accounts." Key Account Management Training. Key account management (KAM) is one of the most important changes in selling that has emerged during the past two decades. When customers see in specific and even personal terms how a product or service can help them achieve their goals, it can be easier to convince them to continue patronizing the business. Cross-functional collaboration to benefit the customer. 888.297.3009 In reality, what most sales leaders tell us is they are seeing key account management create downward pressure on pricing without sufficient upside revenue and share growth. They also hope that highly coordinated account management will drive a strategic partnership with the customer that will lead to significantly expanded business. Use this Key Account Manager job description to find and attract the most qualified candidates. This refers to customer accounts that businesses manage separately from their regular customer accounts. That's the inevitable outcome of giving a customer greater resources and often your best discounts. Viewing key account investment returns as tied to long-term business strategy. It’s because managing key accounts successfully involve the cultivation of intimate business relationships. As George S. Yip and Audrey J.M. SBI recommends choosing three to five selection criteria. You can also try investing in a video platform such as Loom so you can create personalized videos for prospecting and relationship-building. As such, they’ll need to know some important principles for selling to such customers. Account Management and Strategy Best Practices Building relationships with existing clients to transform them into key strategic accounts is a crucial component of any sales strategy because selling to an existing account is much more profitable and predictable than trying to win new business. Starting small lets you focus your efforts. As our key account manager, you'll play a critical role in client retention and revenue growth. Free and premium plans, Sales CRM software. 1550 West Digital Drive, Suite 500 Account Management and Strategy Best Practices. Let us know in the comments section below. And if they already are, they will choose to sever ties. Why? And programs that have been around for five-plus years can see results twice that. These accounts make up the majority of the business' income. This process involves identifying key accounts, winning their businesses over, and creating and sustaining a mutually beneficial relationship with them. Key account managers need to listen closely, translate the client’s needs to the relevant people within their organization, and make sure the client’s requests are handled in an efficient and timely manner. Key Account Management is a strategic approach distinguishable from account management or key account selling and should be used to ensure the long-term development and retention of strategic customers. Your organization needs an explicit, strict definition of key accounts. It revolves around handling the customers who play a strategic role in the growth of a supplier. Key account management strategies are like romantic relationships. Consistently measure account performance. Develop a Key Account Plan Determine KAM goals and drivers Account Industry analysis Activity plan in the account. Competitors will never stop attempting to win KAM customers for their business, and if salespeople don’t continuously improve on their craft, they risk losing their KAM customers to their competitors. As a business discipline, it refers to the process of identifying or targeting key accounts, which have strategic value, and developing a deeper, more meaningful, mutually beneficial relationship with them. Key accounts don't usually buy off-the-shelf: They want a custom blend of products and services tailored to their needs. i.davies@bath.ac.uk Background A big thank you to Richard Ilsley and everyone at Key Account Manager (KAM) Best Practice Knowledge Share for taking part in this research! Partant du principe que les Key Accounts seront ceux qui vous aideront à atteindre les stratégies de votre entreprise, il est important de ne pas les sélectionner uniquement selon le principe de la loi de Pareto (20% des clients réalisent 80% du Chiffre). What is Key Account Management? To be successful, KAMs should be capable of planning short-term and long-term plays, carrying them out, analyzing the outcomes, and applying those takeaways to their future strategies. Coordination and planning of activities for complex accounts. They need to be able to think quickly and apply their knowledge to a variety of different clients and markets and be confident when presenting the information. The above rule has an exception: If you can get your foot in the door of the prospect's company and then grow the account by selling to other departments, offices, subsidiaries, etc., a key account strategy may be a good investment. You can tailor an existing framework to your own needs or create a customized plan. ... Key Account Management- an important strategy … The account is short in terms of business volume and then slowly grows to a medium potential account and finally becomes a high potential account which would be designated as a key account. Here's a list of examples: It's tempting to label many customers as "key accounts" at one time, but be conservative. key account management programs look like?” Done right, better key account programs can obtain more customer volume at lower discounts while not adding to costs. Free and premium plans, Customer service software. It’s better to start too small than to start too big. We use the term key account management (KAM) to cover all four forms. In turn, this may prevent that person from managing key accounts well enough to satisfy and keep them. It is an intégrative élément of the business strategy . Set the Account Strategy While complex, these integrated networks are ripe with opportunities for those manufacturers that can evolve quickly to capitalize on these key accounts. We're committed to your privacy. To give you an idea, the key steps you'll take for your January meeting with the CTO might be: The more specific and actionable these actions are, the better. Strategic account management doesn’t happen by accident – it’s made up of formalized, repeatable, and measurable processes. This programme is designed to provide a conceptual framework for implementing a strategic KAM to help build and manage relationships. Its salespeople only need to learn and implement the strategy. Strategic account management (also known as Key Account Management) is a process of building value-driven strategic relationships with your key customers that can help in long-term development and retention, thereby maximizing the revenue potential. It demands a new approach to the key account by including extra aspects of the client – supplier relationship. Use the same structure you used for your objectives: Short-term, mid-term, and long-term. If your product has upsell and cross-sell potential. At the very least, salespeople should call the key people who represent their key account customers to maintain business relationships. As previously mentioned, one of the primary objectives of key account management is to build lasting relationships that benefit both your company and the business. Key account managers can play a critical role in helping major customers buy business value rather than “piece parts.” The core themes of KAM, however, apply across all industries—especially the need to impose discipline in the management of customer relationships. We need a simple . As such it addresses a range of issues concerned with key/strategic account management and aims to present a coherent approach. Your north star. Key accounts are the lifeblood of any business and salespeople shouldn’t improvise as they do KAM. The pharmaceutical industry’s response to this expansion of decision-making groups is the growing adoption of Key Account Management (KAM) - or Strategic Account Management - as its primary business model. Key account programs have a lot of moving parts. Examples of other metrics salespeople can use to objectively monitor key account management performance include turnaround time and satisfaction rating. As the leader, you are partially responsible for reconciling company goals with KAM goals and creating a strategy that’s supportive of both. These accounts make up the majority of the business' income. But what is the true … If not, it could be a sign you're using the wrong measures. Key accounts must be filtered through their strategic values, or their ability to help the company accomplish its goals. And because KAM requires an intimate relationship with accounts involved, salespeople must regularly meet up or touch base with their key account customers. To serve your clients well, these teams should include a range of skills, disciplines, and expertise. Companies implement key account management strategies on an organization-wide basis. This normally means that it presently or potentially contributes significantly to the achievement of company objectives, such as profitability. Best Practices in Key Account Management JS5990. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, '6fc73954-1b14-47ca-ab80-fefff0626a9b', {}); Originally published Mar 12, 2020 3:00:00 PM, updated October 08 2020, Key Account Management: The Ultimate Guide, How to Know Whether Your Company Needs A Key Account Management Strategy, The Difference Between Key Account Management and Selling, Which Skills Your Key Account Managers Need, How to Hire Key Account Managers (Including a Job Description Template), How to Write A Key Account Management Plan, professional services firm BTS points out, How to Create a Sales Plan: Template + Examples, Outcome Selling: Don’t Sell the Product, Sell the Outcome, Sales Maximization: A Picture of Its Principles and Practice. In this comprehensive guide to key account management, you'll learn: Key account management is the process of building long-term relationships with your company's most valuable accounts. You should also ask yourself whether they're a strategic partner, e.g. Within key account management, the biggest challenge from large customers is the intensifying pressure on price negotiations. When a salesperson handles too many key accounts, it can spread them too thin. To turn buyers into business partners, a key account manager (KAM) typically provides dedicated resources, unique offers, and periodic meetings. KAM is a structure that facilitates the implementation of CRM at the level of the business unit. Focusing on the benefits or the specific solutions to problems that the products or services’ features can provide. It’s the process by which you: Identify your company’s goals Understand the targets and how they are measured Tip: Don’t consider a strategic account plan final unless your client has seen and agreed to the plan. Luckily, like other good habits, these processes can be learned, and in time, become engrained in your company culture. As professional services firm BTS points out, key account programs often lead to increased costs and lower margins. Are your current key accounts generating as much ROI as you anticipated? The core feature of a key account is the existence of a decision-making unit (composed of various healthcare related functions) as opposed to an individual clinician taking on the … Not every account is going to be a key account from the beginning. Strategic account management involves juggling several initiatives, priorities, and campaigns at one time. 3. Participants practice this process step by step using the impact Key Account Management simulation/serious game. 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