2. The
80/20
Rule
If we apply the 80:20 rule
then, in an average
business, 80% of profits
tend to be generated by the
top 20% of the clients.
Pareto
Principle
3. The (20%) are the most
valuable customers for a
business & thus are the Key
Accounts
What does this imply?
4. KEY ACCOUNT MANAGEMENT
Key Account Management (KAM) is a process that
helps sustain and expand relationships with
important Key Accounts.
Key Account Management process requires more
nurturing, different skills, and utmost attention
than other accounts.
5. Centralizing the purchase
process
How is the
Landscape
Evolving?
Large buyers are increasing
their sophistication in making
purchases, by:
Implementing competitive
bid processes and auctions
Preparing rigorously for
negotiations
6. How B2B companies
should reassess their
approach?
• Understand Their Buying
Patterns
• Understand Their Buying
Preferences
7. What does
the research
says?
Large customer say that they buy based on
product & price, but analysis shows that value-
added services and the sales experience
matters much more.
It clearly highlights that one of the most important
roles for the key account team is to manage customer
experience, from the front-end sales process to
ongoing service and support.
8. But how to fuel
that growth?
1. Quantify the full customer experience
By quantifying our value proposition, we can shift discussion from
price to holistic impact on P/L for the company.
Ex: Product bundling, index based pricing etc.
10. 3. Prepare for negotiations
the way customers do.
• One company faced declining margins, failing to identify opportunities for
improved pricing, new products, for its key accounts.
• In response, the company established a “big-deal team” to develop
negotiation strategies and standard tools for its most important deals.
• Before negotiations begin, the team analyzes industry cost curves, gathers
market intelligence, and models scenarios to understand and quantify the
buyer’s best alternatives.
• The company now goes toe-to-toe with sophisticated procurement
organizations, pricing deals with confidence instead of fear.
11. • Improving how B2B companies sell
starts with understanding buying
patterns and preferences.
• Suppliers can turn the tables by
developing best-in-class key-account
programs that focus on sales and
service—and turn the largest
customers into growth engines.
Key Takeaways