![]() How transactional your current sales process is. The competitive landscape you’re facing.ĭespite the potential benefits of key account management to your bottom line, it's not a good fit for every organization.Ĭonsider the following points before you go all-in on a key account strategy.If your product has upsell and cross-sell potential.How transactional your current sales process is.Profits and revenue, meanwhile, can increase by 15%.Īnd programs that have been around for five-plus years can see results twice that. 33% greater chance of being their client’s top choice for future businessĪccording to the Harvard Business Review, customer satisfaction increases 20% within a few years of starting a key account management program.34% more profitability than companies that don’t have a key account management process.Why should you start a key account management program? Key accounts are responsible for 33% of sales revenue.Īccording to Gallop’s Analytics and Advice for B2B Leaders poll, organizations that excel at key account management and engage their customers see vastly improved account growth. That's the inevitable outcome of giving a customer greater resources and often your best discounts.īut if you use the right key account strategy, you'll reap greater sales volume and long-lasting strategic relationships. Starting small allows you to focus your efforts.Īs professional services firm BTS points out, key account programs often lead to increased costs and lower margins. ![]() Starting a KAM program requires organization-wide change, support from the C-suite, hiring and training employees, and implementing new processes. In addition, you don't want to overcommit yourself. You can't tell a key account they've been demoted, but you can tell a traditional buyer you're promoting them. While it's tempting to label many customers as "key accounts" at once to alter your company’s trajectory significantly, it’s better to be conservative. Possibility of becoming a channel partner.SBI recommends choosing three to five selection criteria. The accounts with the highest scores will be your key accounts. Simply evaluate each account based on the criteria you select and assign them a score from 1 to 10 in each category. You can use a key account scoring matrix to identify your key accounts across multiple criteria. You should also ask yourself whether they're a strategic partner, e.g., do they have the connections, resources, and/or industry reputation to significantly alter your company's trajectory? Then, calculate how much potential there is to expand each account. Instead, review your current customers and their historical ratio of revenue to costs. How to Identify Key Accountsĭon't choose solely based on revenue. The more detailed and specific the criteria, the better - these customers will receive a great deal of your company's time, energy, and resources, so you want to make sure they're the right ones. Your organization needs an explicit, strict definition of key accounts. Level of alignment between shared goals (partnership).The level of profitability you have with them (revenue taking into account cost).Amount or share of recurring revenue they bring in. ![]() For example, it could be based on any, all, or some of the following: However, the word "valuable" is subjective based on your organization’s values. These customers represent a disproportionate percentage of your revenue, refer new prospects to your company, give you credibility in their space - or all of the above. A key account can be considered one of your company's most valuable customers.
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