Key account management is focused on creating loyalty and long term relationship with the customers. John is the global leader of sbis account management business unit. Key account management 5 account planning having determined the strategy for each group of key customers, a key account manager needs to be assigned for each customer or group of customers. Strategic key account management management centre europe mce. Implementing successful key account management kam. Putting the gam strategy into practice successful global account management will provide any manager responsible for implementing a gam program with a range of tools for success. Managing global customers repub, erasmus university repository. An account manager am is a person who works for a company and is responsible for the. Customer understanding understanding the changing market dynamics affecting the. The am whether an individual or a team follows a series of steps to analyze the accounts performance, coordinate the accounts activities, identify trade compliance. The template is designed to help achieve consistency in your. The 7 habits of highly effective strategic account managers blog.
Key account management kam is a process of looking after large and important accounts that are critical to the business. Part 1, the context of understanding key account management, positions the portfolio of work in terms of its contribution to knowledge within the literature of key account management and its underlying theories, and relative to alternative research. Key account management is a strategic business approach with the objective of ensuring longterm and sustainable business development through profitable partnerships with strategically important customers key account management is not an isolated business process. Timely, important, and essential, key account management and planning is the only reference handbook those with key account responsibilities will ever need. Strategic key account management is understanding the process at the organizational level that goes beyond sales to encompass building strategic, mutually beneficial relationships between the company and its key customers. Strategic key account management training mercuri india. Article account planning the cornerstone of strategic. It is essential reading for all senior management with strategic responsibility, for key or strategic account directors, and for marketing and sales executives. Jul, 2012 key account management kam is one of the most important changes in selling that has emerged during the past two decades. This requires a clear key account strategy and a different understanding of what can bring superior value to the customer. There are several fundamental differentiators that distinguish key account management from sales strategies. Lynnette ryall2007 proposed a framework to suggest strategies a supplier would design to allocate resources to key accounts based on their attractiveness and suppliers strengths dealing with the key accounts. Performance, measurement and rewards research summary by dr.
As such, he and his team help clients across 19 verticals drive top line growth and operational efficiency in sales and marketing. Richard advises senior managers and supports companies on all aspects of sales strategy and account management, is a founder member of the association for key account management and sits on its main board, speaks and publishes on key account and strategic partnerships and is the author of various papers on these topics. Key account management aaron wallis sales recruitment. Lets breakdown key account management into its simplest form. Special chapters are devoted to partnering with key accounts and indepth information on global key account management, an increasingly important weapon for staying ahead of the competition. The concept of strategic account management is focused on various longterm results and is dedicated to utilizing a firms resources at its best. May 22, 2015 key account management presentation by steve soman slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. How key account management can revolutionise your business. Key account managers en senior account managers met een focus op lange termijn. You also need to influence other decisionmakers and external stakeholders. Most global businesses are rationalizing their approved vendors. On average, most key account management organizations have the biggest gaps in the following subcomponents of each behavior category.
Revegy has developed this account planning template which incorporates account planning best practices to be utilized by your strategic accounts, regional, national, or global sales teams. Strategic account management doesnt happen by accident its made up of formalized, repeatable, and measurable processes. Key account management kam is one of the most important changes in selling that has emerged during the past two decades. Large companies have become increasingly sophisticated negotiators. Jul 25, 2017 why key account management is not another sales strategy its all too common for key account management to get mistaken for a slightly more complex form of sales strategy. Kam is a radically different organizational process used by businessto. 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. 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. If your growth strategy and your corporate strategy are linked together, it is obvious that senior management is highly involved in driving the key account strategy and in supporting the cross. Introduction warwick business schools strategic sales and customer management network was founded in april 2005, to explore new approaches to customers and their implications. Jouw key accountplan voor meerdere doeleinden vastleggen. It will also show ceos and senior management the strategic importance of gam in relation to their organizations overall business objectives. Mercuri india is one of the leading sales training. It all comes down to the behavior of the key account managers.
We have talked about the idea that just because i say the customer is a key account doesnt mean they are or even should be a key account. The template is designed to help achieve consistency in your core planning processes and to establish a common. In response, smart selling organizations are upgrading how they manage their largest accounts. Most of the top 5 suppliers in any market do many things well, all. Luckily, like other good habits, these processes can be learned, and in time, become engrained in your company culture. Key account selling as part of sam preaccount management selling. It is not just about your key account team dealing with the usual buyers. Many companies have created positions of key account managers for this. An overview profile development account evaluation development of an action plan to im prove com liance m on it rng and repor ng of p g ess maintenance of compliant detailed guidelines. As larger and more integrated networks are able to leverage greater economies of scale to maintain lower costs and increase quality care delivery, it is expected that integrated delivery networks idns will continue to expand in scale and capabilities. Het managen van een key account brengt een grote verantwoordelijkheid met zich mee.
Key account management programs are often less than fully successful because kams fall short in particular behaviors. These key accounts can represent 30 to 50 percent of revenue and margin for many companies. That is a major challenge for many b2b companies and it requires a clear key account strategy to build multiple relationships at various levels in the customers organisation. However, i actually found no competitive advantage for using teams on either the performance measures related to. Scribd is the worlds largest social reading and publishing site. The challenges of key account management businessblogs hub. The pace of health system and physician practice mergers has quickened, shrinking the number of independent physicians and. The account manager serves to understand the customers demands, plan how to meet these.
Competencies for key account managers a view from a practitioner taskforce 1. Whereas sales seeks to build revenue through selling, strategic account management looks at what the customer. Pharma must establish innovative, strategic kam strategies to navigate idns complexities. He is also editor of the journal of selling and major account management, a director of the strategic account management association chicago, usa and provides consultancy to bluechip clients throughout europe and north america. Sales and marketing resistance to key account management. Account management and selling are different in these 5 ways. These are meant to complement your account plans and encourage you to take a clientcentric versus productcentric view of how to grow and deepen the relationship. May 23, 2010 in the first part of a two part article, hanno wolfram explores the term key account management and asks whether we really understand what it means. In the first part of a two part article, hanno wolfram explores the term key account management and asks whether we really understand what.
A musthave tool for every company owner, business analyst, manager, and industry expert, it will come handy to you on numerous occasions. He or she will own the operational plan and its implementation and will be responsible for managing the control and distribution of. This articlewhich appeared online at saleshqdefined key. If you continue browsing the site, you agree to the use of cookies on this website. While account planning is critical to successful strategic account management, it is only one of the elements necessary to achieve the desired results in an overall strategicglobal account management strategy. In mature markets like australia and new zealand, key accounts are the main game. Key questions this worksheet poses six fundamental questions that you should try to answer for all of the significant clients in your portfolio. Gallen kam concept is very well designed to implement kam systematically and in full, and to derive increased bene. It requires an indepth knowledge of the customers challenges, and insight that helps you to increase your value to them, so. How to unlock growth in the largest accounts mckinsey. Although strategic planning has been part of the management function for as long as anyone can remember, the emergence of key account plans as a critical. Three questions that can transform your sales force bill coyle and jude konzelmann key account management kam carries greater urgency for pharmaceutical companies than ever before. Key account management comes from authors who have taught leading companies how to approach their most powerful and demanding customers and still make money. This couldnt be further from the truth and underplays the strategic long term approach that key account management encompasses.
By making it a company wide long term business strategy, being realistic with the selection of key accounts and using the right people in the role the rewards can be worth it. By aiming to bridge this gap in research, the authors conducted indepth interviews in two midsized organisations in sweden, one with an implemented key account management. The 7 habits of highly effective strategic account managers. Understanding key account management, starting on page 31, gives an account of the authors research and knowledge development activities in key account management in chronological order, to link together the material submitted as the portfolio of work listed below. Narrow focus on creating and capturing specific opportunities. It is an integrative element of the business strategy. Developing key account management competences article pdf available in journal of marketing practice applied marketing science 22. Implementing successful key account management kam strategies. Kevin wilson is ceo and a cofounder of the sales research trust ltd. The most intrinsic difference between sales and kam is the way the latter defines value. Account management effectiveness is a combination of clarity of direction strategy, a robust engine room people, organisation, processes and the ability to get anywhere faster productivity and competencies. Strategic account management powerpoint template sketchbubble. At least once a year we need to look beyond dollar numbers, relationships and activities to think about our key accounts process.
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. Onetoone contact supplier presentations focus on their own issues and concerns response to customer inquiries is yes or no based on assumed customer needs and supplier capabilities the seller seeks volume potential. Its easy to say kam is a good strategy for improving business performance but what performance. Sep 16, 2011 pharma must establish innovative, strategic kam strategies to navigate idns complexities. What is kam key account management is a strategic business approach with the objective of ensuring longterm and sustainable business development through profitable partnerships with strategically important customers key account management is not an isolated business process. Broader focus on creating value for account over and above specific opportunities, often including value cocreation, customer satisfaction improvement, rigorous application of company resources, and operational and structural alignment with.
Schindler, chairman and ceo, schindler holding ltd the st. Account planning the cornerstone of strategic account management. The reshaping and transformation of the traditional salesforce is. Or if youd like to talk to a live person give us a call at 888. Strategic account planning how to get from good to great. A strategic account manager also called a major account manager, key account manager, nationalglobal account manager is the guardian of the strategic customer relationship, orchestrating the deployment of corporatewide resources to provide comprehensive products, services, and solutions to the strategic account. There is no other way to achieve your growth strategy than through an aligned, commercial organization. The strategic account plan is designed to help the account management team effectively prepare and stay focused on the customers business objectives and goals to ensure they achieve the planned results, create a consistent experience for the customer, and ultimately identify how they can make a positive impact on the customers business.
Done right, better key account programs can obtain more customer volume at lower discounts while not adding to costs. Account mining key account management free download as powerpoint presentation. Broader focus on creating value for account over and above specific opportunities, often including value cocreation, customer satisfaction improvement, rigorous application of company resources, and operational and structural alignment with account direction and needs. You can select a company to be a strategic account, but you wont get the greatest value until they also select you. It requires an indepth knowledge of the customers challenges, and insight that helps you to increase your value to them, so that they see you as a valuable partner. Nick speare was, for 10 years, responsible for all miller. Schindler, chairman and ceo, schindler holding ltd. Key account management preeta h vyas in 21 st century, customer focused businesses attempt to identify few customers from the portfolio of their customer base and try to establish and nurture long term fruitful relationships. The more information you provide, the better well understand your project and find the right solutions for you.