Key account management

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  • 1. Key Account Management Akash C.Mathapati Akash C.Mathapati
  • 2. Definition of Key AccountWhat is a Key Account? Key Accounts are the 20% of customers who provide 80% of your profits Key Accounts are defined as the prospects or existing customers who have the potential or now fall in the 80/20 category. Any customer that is of strategic importance to your company – loss of it of inability to secure potential future revenue would cause a significant impact. Akash C.Mathapati
  • 3. Definition ofKey Account Selling A systematic set of processes in identification & profiling of key accounts, design and adaptation of information-based & value-added selling strategies, profiling own market positioning for high sustainability of growth in sales. Akash C.Mathapati
  • 4. In other words Key Account Selling It’s not just calling higher in an organization, but... when we finally get to top management, we better have something new to tell them about their business that will positively impact their profits and ... we better have the data to prove it and the support of his / her staff to back us up Akash C.Mathapati
  • 5. Key Account Selling People buy for their reasons, not yours.  Key account selling is different. Large accounts have different reasons to buying.  Old selling techniques are based on small, single- transaction selling:  Prospecting  Qualifying  Presenting Akash C.Mathapati
  • 6. Understanding Buying Decisions Phases of the buying process:  Recognition of needs:  Prospects are no longer satisfied.  Evaluation of options:  Begins with confusing array of choices.  As options narrow, choices become clearer.  Clear preference emerges. Akash C.Mathapati
  • 7. Understanding Buying Decisions  Resolution of concerns  Most complex stage in major account selling  Made over a period of time rather than on a single call.  There are competing alternatives to choose from.  There are penalties and risks if a bad decision is made.  Concerns are often hidden--expressed in terms of price.  Implementation Akash C.Mathapati
  • 8. Account Entry Strategy - With DefinedPurchasing Channel Meet gatekeepers:  Their job is to filter vendors.  They influence access decisions, not purchase decisions Meet influencers  Cannot make purchasing decisions.  Have significant influence on decisions.  Gatekeepers and influencers claim much more authority than they have. Akash C.Mathapati
  • 9. Account Entry Strategy - With DefinedPurchasing Channel Meet decision makers  Those who have the power to give you an order. Akash C.Mathapati
  • 10. Seller’s Internal System & Process Central to any organization to deliver value to customers is having its internal systems in order KAM places a premium on delivering excellent customer service, which require internal coordination & more attention to the structure and system Akash C.Mathapati
  • 11. Internal Integration & Coordination Key accounts demand & expect more often in the form of customized services & support These programs & initiatives require the involvement & cooperation of multiple functional areas of both firms Implementing KAM places new demands on multiple functions in a sellers firm, a new form of internal coordination are necessary for success Akash C.Mathapati
  • 12. Team Selling It reflects a response to the complex service demands Selling Center “organizational members who are involved in initiating & maintaining exchange relationship”  Which have fluid members Core Selling teams Akash C.Mathapati
  • 13. Control, Evaluation & Compensation Control systems are typically put in place to align the objectives Levels of monitoring & directing, as well as methods for evaluating & compensating sales people Salespersons activities are performed outside a managers observation Control system are often categorized as behavioral or outcome based Akash C.Mathapati
  • 14.  Key account scenarios, a seller’s objective is to build a long-term relationship This objective has led many firms to focus on other relational outcomes, such as lowering transaction cost, building trust, enhancing customer satisfaction etc Team selling also increases the complexity of evaluating Akash C.Mathapati
  • 15.  Some control mechanism relies heavily on the firm’s selecting appropriate people for the position & training them in both the skills & the values of the organization Akash C.Mathapati
  • 16. Building the Team Once the team is assembled, they should all be invited to meet the customer  There’s a wealth of experience in the team  All of these people are focused on the customer’s needs  That should lead to a successful outcome The firm needs to put itself in the customer’s shoe, before sending out the invitations Akash C.Mathapati
  • 17.  Carefully consider the purpose of the meeting and the desired outcome Only select team members who are essential to advancing the process This must be done deliberately  If you cant state a clear reason for inviting someone, don’t invite them  E.g., Sales VP doesn’t need to attend a design meeting Akash C.Mathapati