Key account management (KAM) is a systematic approach to managing and growing an organization's most important customers to maximize mutual value and achieve mutually beneficial goals. KAM focuses on building solid relationships with existing high-priority clients through a more holistic approach rather than just thinking of clients as sales opportunities. The goal of KAM is to ensure the long-term development and retention of strategic customers by providing solutions rather than just pushing products and helping customers buy rather than just selling to them. KAM solutions select key accounts based on Pareto's rule, focusing on the top 20% of accounts that will provide 80% of profits.

1. KAM
KEY ACCOUNT MANAGEMENT

2. Formal definition
A systematic approach to managing and
growing a named set of an organization's
most important customers to maximize
mutual value and achieve mutually beneficial
goals.

3. What is an account?
• B2B sales always involves bulk amount.
• Products are used as an input for an
organization or purchased for reselling.
• Every client is an account
• But every account is not a key account.

4. • Every business entity that a firm
engages with is an account.
• Some accounts might be more
attractive due to their size or financial
attractiveness.

5. • KAM is not a CRM.
• In B2B relationship matters more than
in B2C, hence understanding the clients
and building a good rapport is necessary.
• KAM is to ensure the long-term
development and retention of strategic
customers.
• FOCUS: Results, Relationship, Trust

6. CRM VS KAM
• CRM solutions are strongly
focused on managing the
sales process. Capturing
key metrics, CRM solutions
can pinpoint accurately
where leads are in the
sales pipeline. Thus, sales
teams can take
appropriate action to
convert leads into sales.
This heavy focus on
managing sales
opportunities and acquiring
new clients is CRM’s
strength.
• KAM solutions, focus
strongly on building solid
relationships with existing
high-priority clients.
Rather than thinking of
clients merely as
“opportunities”, KAM
solutions encourage a more
holistic approach.

7. Without KAM

9. • Hence building a single point of contact
with the help of KAM
• But are all accounts(clients) profitable?
Or can they be our key accounts?
• Certainly no

10. How to select a key accounts ?

11. • KAM is based on Pareto’s rule:
80 % of your profit will come from 20%
of your accounts.

12. Marketing generates thousands of leads &
passes on the qualified leads to sales
who in turn win deals. So far so good.
But for B2B companies who offer
multiple solutions with long term
engagements with their customers,
winning the first deal is only the
beginning. You then farm and mine those
key accounts for more revenues.
Basically, you LAND and then EXPAND.

13. Don’t push products, sell solutions

14. KAM is specific to existing
customers in B2B
companies with complex
solutions, multiple
offerings and long term
repetitive engagements.
KAM requires a deep
understanding of
customer domain,
situation, challenges and
then stitching a solution.
In Sales, one would be
offering a suite of
products already
available.
In Sales you ‘sell’, in KAM you
help customer ‘buy’.