Key account management (KAM) is a strategic activity that aims to develop partnerships between suppliers and customers beyond simple transactions. It focuses on understanding customer needs and providing total solutions rather than just products and services. Effective KAM requires a comprehensive skill set from account managers and a customer-focused organization. Companies implement KAM to create win-win relationships and integrate their strategies and operations with key customers. Developing closer collaborative relationships through KAM can move the partnership from basic transactions to interdependent strategic planning that benefits both companies.

1. Key Account ManagementAristoteles Kabarganos,Managing PartnerAriston Group Performance Consultingwww.aristongroup.de

2. What is Key Account Management?Key account management is a strategic activity

3. KAM is fashionable but also difficult

4. KAM can develop beyond partnership to more synergies

5. There are mismatches between suppliers and customers

6. KAM does reduce costs and improve quality

7. A key account manager needs a comprehensive skill-set

8. KAM needs a customer-focused organisationAccount Management is one part of Sales ExcellenceKnow your marketsDeveloping and managing customersPlan for sales successFinance for salesSalessupportCustomer ManagementManagement and team leadership for salesSales cycleCreating opportunitiesEffective communications

9. Why do companies implement KAM?Win-loose

10. Loose-win

11. Win-winGoal: win-win-winIntegratedInterdependentStrategic intent of sellerCooperativeBasicExploratoryStrategic intent of buyerFirmPartnersEnd-Users

12. The Buyers’ View of Sellers (78%)UnreliableDeviousOpinionatedArrogantPoor ListenersBig TalkersThe enemyUntrustworthyPushyAggressiveManipulativeOnly 18% saw the salesperson in positive termsSource: Negotiation Resource International ‘Buyer Behaviors’ 2001(2000 purchasers over 2 years)

13. What is important to customers?22%39%21%18%Source: The Chally Group 2006

14. What do customers want?Substantiated valueTotal Solutions, not products and servicesOutsource everything except their own core competenciesSource: The Chally Group 2006

15. Some KAM skills from the customers point of view 59%24%21%19%10%9%6%Source: The Chally Group 2006

16. Creating closer relationships with supply and demand chain partners (1)DIRECTORSDIRECTORSFromMarketingMarketingOperationsOperationsInformationSystemsInformationSystemsSalesPurchasingSupplierCustomerAdopted from Professor Malcolm McDonald, Cranfield School of Management

17. Transactional: emphasis on efficiency

18. Driven by price, success measured by price

19. Probably multi-sourcing

20. Easy to exit