KAM has been around for over five decades and has brought profitable gain to many organizations. Key account management is a step further from the typical sales process. The traditional sales approach is more focused on the clients’ transactions than the manager handling key accounts; his skills go beyond the persuasive selling techniques; his main aim is to build a strategic relationship that will increase the company’s ROI.
Managing key accounts gives your business a competitive advantage. It’s a collaborative form of selling that keeps the customer’s best interests in mind. It also recognizes the long-term worth of a client. Instead of focusing solely on the transaction at a time, the most successful key account managers keep an eye on a long-term relationship. Although the tactics differ between organizations, these elements are constant among the top Key Account Managers.
Strategy Implementation in Key account management vs Traditional Selling
Strategy in managing key accounts requires forming a long-term growth plan that pinpoints the factors that could drive this growth and the added value that it can bring. Before establishing critical relationships with clients, it is vital to confirm whether you’d like to focus solely on a handful of clients or manage a large customer base to guarantee more market share. Contrarily the strategy process for traditional selling is product oriented. The sales team need to have extensive knowledge of the product to sell the product or service to them.
The different perspectives on the measurement of success
The management of accounts in any company typically focuses on establishing client relationships and assessing the effectiveness of the connections. Account management that is well managed can aid a business in increasing its revenues, customer service score and profit. Understanding what KPIs for account management are and how to measure them will help you better manage your account.
A practical sales approach is a sequence of choices, actions, and goals that determine how your sales team positions its products to win new customers. It is a roadmap for sales representatives to adhere to, with clear sales procedures and product positioning and analysis of competition. Sales KPIs focus on generating leads and qualifying prospects effectively. To attain a new customer base, they must make several cold calls. The main goal for cold calling is to turn them into paying customers. The sales measurement of success relies heavily on the customer acquisition efforts, such as minimizing the cost per acquisition and cost per lead. They also pivot to customer retention, but most steps are transaction-based.
On the other hand, Key Account Management focuses on customer lifetime value, customer satisfaction and customer outcomes. Having a deeper understanding of why customers are no longer continuing business with you guides your company to make informed decisions on retaining their customers. Metrics such as client churn rates are essential to measuring the company’s performance.
How Kexxel Group can help you?
Effective sales procedure that builds the business will not end when the sales representative declares the deal closed. This process is where the account managers step in to nurture customer relationships. Regardless of any outcome, the sales team must follow up. The follow up can help your company establish long-term relationships with clients. Even potential customers will increase the probability of closing more sales and resulting in more revenue as opposed to abandoning the customer after the deal.
Move from vendor status to becoming a strategic partner with this power-packed online training. The leading expert in Key Account Management, Ian Segail, facilitates this training. You will not miss out on critical insights on relationship building, having greater leverage over your competitors, and utilizing the essential tools and processes, every sales manager must apply to ensure successful account forward movement. Be a part of this seminar. Register at www.kexxel.com