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Key Account Management Overview

Key account management (KAM) is a strategic business approach that aims to ensure long-term partnerships with important customers. It involves integrating customer relationship management into the overall business strategy. For KAM to be effective, it must be positioned as core to the business strategy. Developing internal capabilities around knowledge, structures, systems and tools is also important for long-term success. The objectives of KAM include maximizing sales velocity, increasing average deal size and customer loyalty to reduce costs and build valuable partnerships.

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karan
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301 views26 pages

Key Account Management Overview

Key account management (KAM) is a strategic business approach that aims to ensure long-term partnerships with important customers. It involves integrating customer relationship management into the overall business strategy. For KAM to be effective, it must be positioned as core to the business strategy. Developing internal capabilities around knowledge, structures, systems and tools is also important for long-term success. The objectives of KAM include maximizing sales velocity, increasing average deal size and customer loyalty to reduce costs and build valuable partnerships.

Uploaded by

karan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Introduction to Key Account Management
  • Strategic Implications
  • Objectives of Key Account Management
  • Customer Thinking
  • Implementation Strategies
  • Managing Key Accounts
  • Selling Strategies
  • Need vs. Result Analysis
  • The Key Account Management Process
  • Prospect Identification
  • Solution Selling
  • Dimensions of Solution Selling
  • Expanded Solution Selling
  • Account Strategy Plan
  • Relationship Development Model
  • Conclusion and Acknowledgements

KEY ACCOUNT MANAGEMENT

WHAT IS KAM???
Key account management is a strategic business
approach with the objective of ensuring long-term
and sustainable business development through
profitable partnerships with strategically important
customers
Key account management is not an isolated business
process. It is an intégrative élément of the business
strategy.
STRATEGIC IMPLICATIONS
KAM as core to business: For KAM to be able to
deploy its full potential and benefits, it is crucial that
it be positioned in the organization as a core to the
business.

Capacity building: Developing internal capabilities


and capacity in terms of knowledge, structures,
systems and tools is a requirement for long-term
success
OBJECTIVES OF KAM
•Maximizing the sales velocity, this improves the
utilization of the sales resources and understanding
the importance and nuances of managing account.

•Increasing average deal size or the wallet share,we


achieve with each customer, while at the same time
minimize price erosion by developing specific
process to build and manage accounts

•Increasing customer loyalty and customer retention


,this in turn drives down overall cost of sales.

•Thereby, be value partners to our customer.


THINK LIKE YOUR CUSTOMER:

Managing & selling to key accounts-


Bussiness Acquisition & Retention
HOW TO GO ABOUT IN KAM???

New Product
penetration
Development

Market Extension
Market
On Product
Development
Lines
THE BUSINESS PARADIGM
MANAGING KEY ACCOUNTS
Business
objective

Managing the future


must be continual
process of analysis,
reassessment and
change
KAM is
about
managing
people

Mrkting Oppurinities Business resources


SELLING MILLIPORE SERVICE
THINK LIKE YOUR CUSTOMER:

Managing & selling to key


accounts-
Understanding what customer
really wants
THE NEED VS RESULT ANALYSIS
Current State Desired Future state

“c” buys what they need


to,so they can get what
they want. They don’t
want a solution ,what they
want is result.
THE BUSINESS ACTION DRIVERS
WHY KAM???

[Link] is a process for “finding new


opportunities”

[Link] is a means to provide uniform


service and selling solutions

3. KAM is a means which focuses on


providing solutions for overcoming
barriers
THE KAM PROCESS
WHO IS OUR PROSPECT???
ASSESSMENT CRITERIA POINTS SCORE

• Present contributions

• Customer expansion/ diversification

• Referrals

• Conformation to regulatory norms

• Credit worthiness

• R&D

• Geo- reachability

• Pricing & profitability


THINK LIKE YOUR CUSTOMER:

Managing & selling to key


accounts-
Selling to key accounts
PORTER’S Threat
ANALYSIS Of
New
entrant
s

Bargaining Bargaining
power of Competitive rivalry power of
supplier buyer’s

Threat of
New
substitut
e
SELLING TO KEY ACCOUNTS
ASPECTS OF SOLUTION SELLING
• Relatively long period of time

• Unclear needs and demands

• What is the right solution.

• Large number of people are involved both in the customer’s


organization and our company

• More efforts are required to form a tailor made solution and “sell” it
to the customer.

• There is a need for a more structured planning.


THE DIMENSIONS OF
New solu
SOLUTION SELLING

adaptatio
n Selling solutions
Small
adaptatio
n Marginal sales
efforts

choice

Std.
products sellers

No. of
normal large critical
efforts
SOLUTION SELLING
THINK LIKE YOUR CUSTOMER:

Managing & selling to key


accounts-
Managing key accounts
LET’S CONSIDER SOME POSSIBLE
OBJECTIVES

• Retention of customers in a competitive environment

• Growth through entry into new customers

• Growth with existing customers

• Managing customers with a cross territory perspective

• Going beyond product and benefit selling .


ACCOUNT STRATEGY PLAN
THE KEY ACCOUNT RELATIONSHIP
DEVELOPMENT MODEL

HIGH

KAR
SUCCESS
%

LOW

LOW STRATEGY HIGH


KEY ACCOUNT MANAGEMENT

THANK YOU

KEY ACCOUNT MANAGEMENT
WHAT IS KAM??? Key account management is a strategic business approach with the objective of ensuring long-term and sustain
STRATEGIC IMPLICATIONS KAM as core to business: For KAM to be able to deploy its full potential and benefits, it is crucial
OBJECTIVES OF KAM •Maximizing the sales velocity, this improves the utilization of the sales resources and understanding th
THINK LIKE YOUR CUSTOMER: Managing & selling to key accounts- Bussiness Acquisition & Retention
HOW TO GO ABOUT IN KAM??? penetration New Product Development Market Extension On Product Lines Market Development
THE BUSINESS PARADIGM
Business resources MANAGING KEY ACCOUNTS Managing the future must be continual process of analysis, reassessment and chan
SELLING MILLIPORE SERVICE
THINK LIKE YOUR CUSTOMER: Managing & selling to key accounts- Understanding what customer really wants

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