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Key Account Management (KAM) is a process for maintaining and expanding relationships with critical key accounts. It involves working carefully with multiple business departments to maintain and further develop key account relationships. Key Account Management, also known as Tactical Account Management, is answerable for achieving sales quota and assigning relevant account objectives/indicators.

Key account management is a different strategic approach to account management or account sales and should be used to ensure the long-term development and retention of strategic customers.

Key Account Management Write for UsThe one common mistake that many organizations, big and small, tend to make over and over again is treating all of their accounts with the same business model. However, it’s never too late to correct the situation and take a closer look at your account type and process. You will notice a key difference in the types of accounts that organizations like yours have in their portfolio.

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Formulating A Successful Key Account Management Strategy

Once you’ve determined that key account management is right for your business, you’ll need an implementation plan. To begin with, sellers need to be aware of the different tactics they will use. Instead of focusing on specific opportunities, such as closing a one-time deal, employees will focus on strengthening ties and aligning with long-term client goals.

61% of companies believe that “strategic account management training” can help them increase revenue, profits and customer satisfaction. Your business can reap the rewards of these strategies by taking the time to understand and teach account management best practices.

4 Important Key Account Management Steps Of Relationship (With Key Accounts)

Key Account Management (KAM) is very concerned with customer relationship management, and it is essential to understand these relationships, which range from simple transactional forms to complex and intimate links.

The key account manager and the provider organization want to know what caring relationship they have with each customer and what they can and cannot do with it.

1. Tactical Relationship

The “account” is in the tactical stage, either because it’s new or because the nature of the “account” requires you to maintain the relationship that way. You would be one of many providers. The focus on the relationship is transactional, with pricing as the primary criterion. The interaction is through a person on both sides. The commitments are few, and short-term forecasts can be made. It is not difficult for either party to get out of the relationship.

Please note that it is normal for some accounts to remain in the tactical stage even after a long period of engagement with them, specifically if the “account” does not believe in building a partnership with vendors or the long-term potential is not high.

However, if the “account” potential is medium to high, plan to invest more to move up the relationship ladder.

2. Cooperative Relationship

The “account” gradually began to go beyond transactions. A few people on both sides drive engagements and interactions, but more at an operational level. The customer can still leave the relationship quite quickly, with some drawbacks. The cost of a relationship increases on “your” side without clearly visible benefits of cost savings or increased business.

You can stay in this stage if the “account” has low to medium potential. If the “account” has high potential, appraise the effectiveness of previous investments and refine investments to build better relationships. The returns on these investments may not yet be apparent, but you should be well on your way to realizing the returns in terms of cost savings, more business, or both.

3. Relationship Of Interdependence

“You” and “account” are subject to mutually beneficial commitments. “You” is primarily your offerings’ sole (or at least the most important) provider. Interactions take place at all functional levels. You have a lot of admission and training to use “account” information to create better solutions for them. “Account” began to include “you” in its planning. It will be problematic for the “account” to get out of the relationship.

The “account” is now very profitable, and “you” can also foresee an acceleration of sales or an increase in business in the medium and long term.

If the “account” does not have a high probability, “you” may want to review the current investments and recalibrate them.

4. Strategic Relationship

It is the highest relationship stage where “you” and “account” have come together to achieve a long-term win-win strategy for key account management. The barriers to leaving the relationship are very high, and the exit will be traumatic. The interactions between “you” and “account” are very open at all levels. The “account” is highly profitable, and “you” have long-term visibility into business growth.

It is the ideal step if the “account” has excellent potential. If the prospect is not high, you may reconsider investing in building this type of relationship.

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