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Key account Management

Meaning, significance and

advantages

Submitted from:

Gaurav sardana( BM-012187)Parth Verma(BM-012194)

Tanu(BM-012191)

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The management of the customer relationships that are mostimportant to a company.

Key accounts are those held by customers who produce most profitfor a company

those who are of strategic importance.

For a successful business, Development of these customerrelationsand customer retentionis important to businesssuccess.

Particular emphasis is placed on analyzing which accounts are

key to a company at any one time, determining the needs of these particular customers,

implementing procedures to ensure that they receivepremium customer serviceand to increase customer satisfaction.

http://www.qfinance.com/dictionary/customer-profitabilityhttp://www.qfinance.com/dictionary/customer-relationship-managementhttp://www.qfinance.com/dictionary/customer-relationship-managementhttp://www.qfinance.com/dictionary/customer-retentionhttp://www.qfinance.com/dictionary/customer-servicehttp://www.qfinance.com/dictionary/customer-satisfactionhttp://www.qfinance.com/dictionary/customer-servicehttp://www.qfinance.com/dictionary/customer-satisfactionhttp://www.qfinance.com/dictionary/customer-satisfactionhttp://www.qfinance.com/dictionary/customer-servicehttp://www.qfinance.com/dictionary/customer-retentionhttp://www.qfinance.com/dictionary/customer-relationship-managementhttp://www.qfinance.com/dictionary/customer-relationship-managementhttp://www.qfinance.com/dictionary/customer-profitability

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It ensures sustainable business development

through profitable partnerships with

strategically important customers i.e. selecting

customers who are of great significance to

the company.

The objective of key account management is

to gain a thorough understanding of keycustomers.

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KEY ACCOUNT MANAGEMENT

What is a Key Account ?

What is Key Account Management (KAM) ?

KAM is an strategic business approach whichincludes developing long term relationshipswith strategic customers whose needs you

understand in depth. It describes a customer-oriented coordination

unitwithin a company.

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Key account preliminary categorization

(traditional key account categorization)

Top 15 (in volume/revenue generated)

Next 30

Next 55

A

B

C

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Objective of KAM

Customer Retention

Objected to raise Customer Retention andconcentrates on holding those customers, who

continue to regularly purchase products orservices by the same company.

As from a companys perspective, to hold suchcustomers who buy on a continuous basis is

profitable for business: Customer Retention ismuch cheaper and more effective than thepermanent acquisition of new customers

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Maximizing Customer Value

The second intention of KAM is proclaimed to

be in maximising the customer value in the

total value, which a customer delivers to a

firm. This value can be both of monetary and

non-monetary character

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Significance of Key account

management

Help the organization in understanding ofcustomer needs

Help in understanding of usage pattern

Understanding of competitor information

Raise customer satisfaction

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Advantages of key account

management

Customization

Consultancy

Smooth working Consistency

Continuity and Trust

Barrier to Competitor entry

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THANK YOU