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Key Account Management (KAM) - Coggle Diagram
Key Account Management (KAM)
Strategies
Tactical Relación:
The key account in this stage is newly opened.
a. Early stage: exit the relationship before it gets complicated.
Cooperative relationship:
The account slowly moves with increasing operations.
a. Exit the relationship is still an option available.
b. The cost of this business relation increases from the side of the supplier.
Interdependent relationships:
Agreement in which the supplier and the account are locked.
a. You have access to much information so that you can provide better solutions.
b. Account development will be profitable for the account itself and also for the supplier.
Strategic relationships:
Arrived a a win-win situation and help develop a crucial long-term AMS
.
a. Exit will be costly for both and will be very traumatic.
b. The account becomes very profitable.
c. Dependency
Steps
Formalize the process:
Formalize the KAM process and allocate a separate salesperson to manage the KA.
Distinction of KA
The KA is the one which will add the most value and is why it is crucial to have a different line.
Expand the KA from small level
The efforts should be given to expanding the currently smaller account into a high-volume KA.
Solutions over products:
Sales team should provide solutions to them, and they should adopt a conceptual strategy
Meeting the KA:
Active participation. You should be aware of all the happenings in that account.
Meaning
Account
Customer who gives you business by purchasing your products.
Paretho principle
80% of your sales come from 20% of your customers. 20% are described as key accounts.
Managing key accounts
Maintaining and expanding relationships with them so that maximum business can be forged.
Key account manager
Person responsible for handling the KA.
Reference
:
Bhasin, H. (5/03/2020). Key Account Management – Meaning, Strategy, Stages. Obtained from Marketing91:
https://www.marketing91.com/key-account-management/
