Key Account Management – 7 Tactics That Never Fails

Key Account Manager Responsibilities (Image source - slideshare.net)

Not all customers are created equal, in the profitability they bring to you and in the volume that they buy from you. Some of your clients have the critical impact on your business. They perhaps your highest profit customers, or must significant national/international accounts, or your largest customer.

 

The question as an account manager is, do you practice account management strategies in your business? Do you know what key account tactics are – how and why you should manage them?

Let's first understand the definition of key account management followed by strategies of efficient business to business sales relationship management.

 - The primary role of key account management is to focus on those accounts that epitomize an enormous percentage of significant business measure – be it specific product    sales, profitability, overall sales volume, national account status and more.

 Key accounts possess a great deal of power in any relationship with their suppliers. It is your responsibility to manage that power and build a relationship that is a balanced  partnership.

 You will have to add key account strategies when you create your sales program. Ensure the plan contains a worst case scenario; losing at least one of your key accounts and  the manner in which you will handle that loss. Create a scenario plan and analysis that can allow you to address survival results.

Seven key account management strategies

                                                                1. Price incentives, volume rebates or discounts – everyone does it, and everyone expects it.
2. For the key account, customize your services or products. For instance, private labeling or tailoring of actual features of products/services for the critical account.
3. Set up cross-business initiatives and teams to improve services, such as quality improvement teams, product development teams, and branding efforts, etc.
4. Dedicate the internal staff to support the key account, for instance, shipper or customer service representative. In other words, create a single point of contact for the key account.
5. Set up priority order program for your key account.
6. Always try to match your relationship with a key account.
7. Provide fulfillment, invoicing, inventory, integrated delivery, and re-order points.

The efficient key account programs substantially enhance the competence level of an organization. For instance, targeted sales plan, optimized order scheduling and inventory management, improved sales efficiency, focused communications and streamlined processes.

A flawless account management program not only limits itself to profits and sales volume but equally focus on complexity or simplicity, of providing a service, geographical closeness, long-term relationship and volume growth potential.

The goal of an account manager is not only to retain the accounts but also to earn considerable profits from the account. To build a stable business to business selling environment, it is essential to create powerful exit barriers so that key accounts find it hard to leave.

A word of advice on key account management

KAM executions require years, not months. Providers who fail at KAM (Key Account Management) often think of it as being an initiative inside the sales department. This strategy is doomed to failure. KAM is a dedication to meet this guarantee and, to work differently with particular precedence customers, support and other provider departments must comprehend key account management. In case, a vital account is guaranteed precedence use of services or pressing merchandises, it is Businesses who will supply that, not Sales. 

 

 

In a nutshell, for efficient business to business sales relationship management, the account manager must bring such strategies on board that exhibit exclusive benefits to key accounts. By creating a robust key account management program that helps both your business and your customer, the organization can establish a foundation of long-term B2B sales relationship.

 

 

Similar Articles

How to Find Out if You Are Working with a Good Airbnb Manager

Signing your home up to be an Airbnb property can easily turn out to be a good and very profitable move for you. Of course, if you want this venture of yours to be successful, you have to be willing to put in the work, or at least find someone else who can.

POS System

When you start a small or medium business, it is important to have the necessary tools to maintain it for a long period. Even more important than having the tools, is to know which could be very useful for the various processes that may exist.
 

7 Tips for Starting Your Own Business

Owning a business is a dream for people who want to be free from the corporate world and create their own destiny. However, starting a business is a big financial risk and many businesses don't succeed beyond the first three years

back office outsourcing

When managing business functions at the same time is concerned, outsourcing the back office functions to one of the back office service providers have been in trend these days. With a large number of organizations gaining a better understanding about the benefits of availing the services

online reputation management strategies

Implementation of online reputation management strategies is essential to achieve desired results. Your online reputation potentially impacts all aspects of life – both personal and professional. Your co-workers, romantic interests, hiring managers, employers, and potential business partners do an online search prior to making any decisions.

stock management

The success of your store involves more than just a nice website or good marketing. Managing your inventory is at least as important. You do not want to buy too much stock that you stay with, but also not too little, so that your sales opportunities go wrong

 Customer Acquisition Records With Dynamics CRM

Customer acquisition is the top priority of every business. An organization growth completely depends on the quality and quantity of customer acquisition. Therefore, most of the companies prioritize customer acquisition and most of their business strategies are curated to amplify customer’s interest and engagement.

Never Underestimate the Influence of Workflow Management

In a broad sense, workflow management can involve all the tools and processes used to streamline and optimize the operation of an organization, but this term is often referred specifically to a software system created for improved productivity, including document management tools, content management tools, and business process management or BPM tools.

3 Tips For Increasing Efficiency in the Workplace

It is likely every CEO or managers dream, to walk into an office and see their employees pouring their hearts into their work, with an enthusiastic attitude. However, the reality is that this level of efficiency takes time and effort to create