KEY ACCOUNT MANAGEMENT

WHAT IS KAM???

Key account management is a strategic business approach with the objective of ensuring long-term and sustainable business development through profitable partnerships with strategically important

customers

Key account management is not an isolated business process. It is an intégrative élément of the business

strategy.

STRATEGIC IMPLICATIONS

KAM as core to business: For KAM to be able to deploy its full potential and benefits, it is crucial that it be positioned in the organization as a core to the business.

Capacity building: Developing internal capabilities and capacity in terms of knowledge, structures, systems and tools is a requirement for long-term success

OBJECTIVES OF KAM

•Maximizing the sales velocity, this improves the utilization of the sales resources and understanding the importance and nuances of managing account.

•Increasing average deal size or the wallet share,we achieve with each customer, while at the same time minimize price erosion by developing specific process to build and manage accounts

•Increasing customer loyalty and customer retention ,this in turn drives down overall cost of sales.

•Thereby, be value partners to our customer.

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accounts-Bussiness Acquisition & Retention

HOW TO GO ABOUT IN KAM???

penetrationNew ProductDevelopment

Market ExtensionOn Product

Lines

Market Development

THE BUSINESS PARADIGM

Business resources

MANAGING KEY ACCOUNTS

Managing the future must be continual

process of analysis, reassessment and

change

KAM is about

managing people

Business objective

Mrkting Oppurinities

SELLING MILLIPORE SERVICE

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accounts-

Understanding what customer really wants

THE NEED VS RESULT ANALYSIS

“c” buys what they need to,so they can get what they want. They don’t

want a solution ,what they want is result.

Current State Desired Future state

THE BUSINESS ACTION DRIVERS

WHY KAM???

1.KAM is a process for “finding new opportunities”

2.KAM is a means to provide uniform service and selling solutions

3. KAM is a means which focuses on providing solutions for overcoming barriers

THE KAM PROCESS

WHO IS OUR PROSPECT???ASSESSMENT CRITERIA POINTS SCORE

1. Present contributions

2. Customer expansion/ diversification

3. Referrals

4. Conformation to regulatory norms

5. Credit worthiness

6. R & D

7. Geo- reachability

8. Pricing & profitability

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accounts-

Selling to key accounts

PORTER’S ANALYSIS

Competitive rivalry

ThreatOf

Newentrant

s

Bargaining power of buyer’s

Bargaining power of supplier

Threat ofNew

substitute

SELLING TO KEY ACCOUNTS

ASPECTS OF SOLUTION SELLING

1. Relatively long period of time

2. Unclear needs and demands

3. What is the right solution.

4. Large number of people are involved both in the customer’s organization and our company

5. More efforts are required to form a tailor made solution and “sell” it to the customer.

6. There is a need for a more structured planning.

THE DIMENSIONS OF SOLUTION SELLING

Selling solutions

Marginal sales efforts

sellers

No. of efforts

normal large critical

choice

Std. products

New solu

adaptation

Small adaptatio

n

SOLUTION SELLING

THINK LIKE YOUR CUSTOMER:

Managing & selling to key accounts-

Managing key accounts

LET’S CONSIDER SIX POSSIBLE OBJECTIVES

1. Retention of customers in a competitive environment

2. Growth through entry into new customers

3. Growth with existing customers

4. Managing customers with a cross territory perspective

5. Going beyond product and benefit selling .

ACCOUNT STRATEGY PLAN

THE KEY ACCOUNT RELATIONSHIP DEVELOPMENT MODEL

HIGH

LOW

HIGHLOW

KARSUCCESS

%

STRATEGY

KEY ACCOUNT MANAGEMENT

THANK YOU