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These accounts make up the majority of the business' income. To turn buyers into business partners, a key account manager KAM typically provides dedicated resources, unique offers, and periodic meetings. As professional services firm BTS points out , key account programs often lead to increased costs and lower margins.
That's the inevitable outcome of giving a customer greater resources and often your best discounts. But if you use the right key account strategy, you'll reap greater sales volume and long-lasting strategic relationships. Why should you start a key account management program? And programs that have been around for five-plus years can see results twice that.
Despite the potential benefits of key account management to your bottom line, it's not a good fit for every organization. If your sales cycle is relatively short and your sales reps have minimal interactions with prospects, key account management probably isn't the right choice.
What is Key Account Management? by Nikolaus Kimla - SalesPOP!
Key accounts require consultative selling techniques -- and it will be hard to teach your salespeople to adopt completely new processes for just a few clients. There's little point in continuing a relationship with the customer after the sale if they're not going to buy more.
Obviously, you still want to provide excellent customer service and support to promote word-of-mouth marketing and high retention rates. 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 program can serve as a competitive advantage.
Account Management and Strategy Best Practices
Imagine your customer has narrowed down their choice of vendor to you and one another company. If you can promise to make them a key account -- and your competition can't do the same -- you're likelier to win the deal. Successful key account management depends on company-wide support, executive buy-in, and a dedicated key account team. You'll also need enough runway for an investment that might take 12, 24, or 36 months to recoup. Key account management and selling are very different.
While a salesperson focuses on the short term -- by necessity -- a key account manager KAM prioritizes the future. Sales reps also zero in on specific opportunities, while KAMs have broader goals, including collaborating with the customer on mutually beneficial projects, helping the customer meet their objectives, and making sure the customer is getting the necessary support.
Your organization needs an explicit, strict definition of key accounts. The more detailed and specific the criteria, the better -- these customers are going to receive a great deal of your company's time, energy, and resources, so you want to make sure they're the right ones. Don't choose solely based on revenue. Instead, review your current customers and their historical ratio of revenue to costs. Calculate how much potential there is to expand each account.
You should also ask yourself whether they're a strategic partner, e. SBI recommends choosing three to five selection criteria. Here's a list of examples:. You are hands-on, but also see the bigger picture and drive successful tactical outcomes. You are eager to get hands-on with the nitty-gritty of making our growth plans a success. Available to travel regularly, both domestic and intercontinental.
You will need to visit our HQ in The Netherlands on a regular basis to ensure proper alignment with our leadership team and supporting departments. You have previous work experience at a BPO or CX-related tech company and have a thorough understanding of relevant metrics, our business, and commercial workings. Fluent English speaker. A clear goal on the horizon, with the right people and tools at your disposal. A competitive salary based on market standards. A fulfilling position within a fast-growing company with great clients.
An inspiring environment with young, talented colleagues located all over the globe. About us: We are 5CA. Think about your own organisation and what you class as a key account. There are many key account management definitions out there but here are the 7 most common types of classification: Are they just the big ones? Are they the ones that offer future profit? Are they the ones you want your team to focus on — to look after the very best?
Are they the ones where extra effort will bring extra returns?
Account Management & Sales Strategy
Are they the ones that demand more of you? Are they the ones that will take your business where you want it to go? So how has your organisation gone about choosing its definition? Why are your staff focussing on them anyway?
A salesperson needs to live in the past, present, and future. Please write a comment below and let me know. Happy Selling! Category : Account Management Tags: types of key account management what is a key account management.