Have you been looking for helpful processes to manage your large-sized accounts? If yes, you need smart Key Account Management (KAM) strategies and solutions to handle the customers that are critical for the success of your business.
KAM deals with the development of robust, long-term relationships with strategically significant customers. Well-conceived and properly implemented KAM solutions help businesses like yours optimize customer value and attain mutually beneficial goals. These solutions are targeted at those customers who are likely to bring in large volumes of profit and business.; they require more efforts, time, attention, and resources for their growth and retention vis-à-vis regular customers.
These solutions are targeted at those customers who are likely to bring in large volumes of profit and business.; they require more efforts, time, attention, and resources for their growth and retention vis-à-vis regular customers.
Here, we help you understand the necessity of hiring Key Account Management (KAM) services to enable higher success and growth for your organization.
Key Account Management (KAM): What Does it Deal With?
KAM encompasses a lot more than the mere selling of products and services to key customers. It deals with those clients that have a strategic and critical role to play in your organizational growth. Alex Raymond from Kapta explains that one fifth of your existing clients account for four fifths of your revenue, making it essential to put an adequate amount of time and resources into keeping those clients.
Given this, key account managers focus on all those accounts that are perceived to be of immense value for the organization. KAM can be categorized as a long-term business strategy. It needs consistent investments to give off maximum returns. In order to gain optimum account value, you may have to make further investments in relation to aligning and structuring your business processes.
Where is Key Account Management (KAM) Applied?
Because of the increasing complexity of KAM strategies, they are best applied to a selected number of (key) clients only. These clients have to selected after due consideration by the management and KAM experts. Having an idea of the client organization’s preparedness for the process is very important to get due returns from your investment in KAM services.
Along with nurturing a desire to participate, these key clients should have the potential or level of business to make the effort worthwhile. As KAM strategies are helpful in creating stronger business relationships, they succeed in placing you ahead of the competition to secure your business. In other words, both your organization and that of the client would largely benefit from implementing KAM solutions.
Difference between Traditional Sales (TS) & Key Account Management (KAM)
To understand how Key Account Management works, it’s important to know how it differs from traditional sales-buyer relationships. Such conventional relations are not adequate for handling major key accounts anymore. KAM helps in establishing essential relationships with business partners, those who can add value to your business and can pave the way for significant competitive advantages.
The main differences between KAM and Traditional Sales are as follows:
- Relationships are far more aligned and well-knit in KAM strategies; they nurture a more transactional approach in case of TS.
- Budget and time comprise of the primary investments in KAM; on the other hand, the budget serves to be the only investment in TS.
- While KAM focuses on forward and future planning, TS involves fast transactions and profits.
- You can evaluate the success of your KAM efforts by calculating the ROI; TS can be measured via increased sales.
- KAM strategies are designed as custom-made solutions while regular TS strategies form the base for TS.
- KAM is targeted at the construction of a metaphorical layer around key customers; it’s aimed at stopping competition from cutting through these layers. TS also considers the behavior of rivals but lays more focus on dealing with them in terms of value and costs.
- KAM focuses on creating long-term relationships and a more loyal customer base. Conversely, TS focuses on sales and is short-term in nature.
Why Outsource KAM Processes?
Many organizations mistakenly shuffle their best-performing salespeople and assign the role of Key Account Managers to them. This can backfire in a big way as KAM does not deal with sales techniques alone; more importantly, it handles the work and performance of people. KAM processes are best outsourced to third party professionals who have the right know-how and techniques in place to perform the job well.
Their KAM experts and managers are well equipped to enable you to build long term relationships with your strategic clients. KAM experts leave no stone unturned to consolidate the trust between your organization and clients for mutual benefits.
Benefits of Hiring KAM Consultation & Services
KAM consultation and services can help you onboard KAM strategies effectively and quickly. Be it via implementation or training, professionals in KAM services can bring in dynamic changes to take your organization to the next levels of success. More so, you can get easy access to the years of experience and expertise of world-class KEM managers without involving your in-house team.
This, in turn, will lead to increased sales and ROI for your organization. KAM experts offer a plethora of solutions and services to bring in success for your Key Account Management programs. They provide vision alignment, in-depth assessments, and meticulous execution plans through timely consultation.
Along with efficient KAM process optimization, professionals in KAM enable joint success planning for your key accounts. In addition, KAM agencies are instrumental in gathering customer insights, creating action plan templates, refining Key Account Management strategies, and handling KPIs and team dashboards. Overall, they minimize risks, ensure strategic alignment, and fuel business outcomes.
Benefit by Hiring Key Account Management Services
Hire experienced Key Account Management experts and consultants to design strategic programs that enable more growth and success for your organization. Contact a KEM services company of your choice for CRM integration, Set up Single Sign-On (SSO), REST API consulting services, secure FTP syncing of data files, and a wide range of other customized solutions. Keep growing and consolidating your key customer accounts to grow your business further. Get in touch with KEM experts to leverage the many benefits of smart and properly planned strategies to retain your most important clients.