The Importance of Implementing Key Account Management in Organisations

The Importance of Implementing Key Account Management in Organisations

KAM or Key Account Management is an essential part of any organization. That’s because it focuses on engaging and managing the existing group of customers. The process of KAM involves strategies that are beneficial to both the company and the customers. It aims at generating maximum revenue for the company by nullifying its competition.

KAM is not a short-term process instead it requires months and years of implementation efforts. The practice of KAM generally involves part of sales intelligence, marketing, relationship development, strategy management and market research. However, their many companies that consider KAM as a complete sales process. What they fail to realize is that KAM is all about establishing a partnership.

Why IS KAM Important?

The importance of KAM can be listed in the following points:

  • There is a reason as to why more and more companies are following the latest Account Management trends. The generation of revenue is undoubtedly the most important part of every company or organization. And, KAM contributes to the revenue generation of a company.
  • The customer segment in every company can be divided into three major parts: new customers, key customers, and major customers. Every customer is thus, treated as an account through which a company generates revenue. Based on the statistical records, it has been found that the major portion of the revenue is generated from the key and the major accounts through repetitive business. Therefore, it becomes absolutely necessary for the company to manage its customers account so, that it can generate maximum revenue. And, this is where the need for key account management comes in.
  • KAM also proves to be beneficial in identifying competition and thus, strategizing

 accordingly.

  • With the help of KAM, companies retain their customers and prevent them from shifting to any other companies.

The Process of KAM

The process of Key Account Management involves the following steps listed below:

  • Shortlisting the key accounts.
  • Appointing a key account manager.
  • Identifying the decision makers in the account.
  • Establishing and maintaining relationships with customers.
  • Achieving the ultimate goals.
  • Identifying opportunities and thus, building a value
  • Preparing a strategy.
  • Implementing the strategy to win.

Thus, it can be concluded that KAM helps to build a trustful relationship with the existing customer accounts and thus, contributing to the increase in revenue generation by the company.

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