Key Account Management is normally associated with the idea of looking after large and important accounts that are critical to the business. But what is the true meaning of Key Account Management?
Key Account Management (KAM) is far more than just selling products to big customers, its dealing with those customers who have a strategic role to play in the growth of a supplier. This therefore includes a range of large accounts that are perceived to be heading in a direction that is critical to the supplier.
Key Account Managers should not be seen as super sales consultants. It is important to emphasize that the concept of key account management in the highest degree differs from traditional sales efforts. For a company to be able to get the highest count of sales work performed, the key account management gradually evolved to become an important position in the businesses that participate in a market where customer relationships drives profitability.
Key Account Managers should be highly skilled to manage a range of different influential personnel in the customer’s organization, not just the person responsible for the account. They should also be able to work with purchasing professionals, board level customers, CEOs, and CFOs. They should have skills that allow them to negotiate terms and conditions, resource investment and partnership projects without having to refer to management all the time.
Key Account Managers should manage the relationship between key accounts and the company that they represent, including client service, troubleshooting, personal contact, problem solving and new business development.
Key account management means the management of customer’s relationships that are most important to a company. Development of these customer relations and customer retention is important to business success. KAMs need to manage the relationships and influences in the buying unit in order to get a positive economic outcome for their firm.