I spend lots and lots of time thinking about Key Account Management. I often get asked to define KAM, contrast it to customer success, or explain why KEY Account Management is different from regular Account Management.
One of my favorite definitions of Key Account Management is:
“KAM is delivering win-win outcomes and maximum value to the customers that are most strategic to your business.”
Let’s unpack 3 key elements of that statement.
- “Win-win outcomes”: we also call this “joint success.” It means that we only succeed when our customer succeeds. So our success is dependent on the customer reaching their goals.
- “Maximum value”: this implies that we understand HOW our customer defines value. Is it growing revenue, saving money, driving product usage, improving branding, or increasing compliance?
- “Most strategic” customers: it’s not just the biggest. It’s the customers that are most aligned with your vision, have the best potential for growth and are the most profitable. This is a loose definition on purpose since I’ve heard lots of different ways that companies identify their most strategic customers.
Using this framework for your KAM program will allow you to focus on what matters most to your more important customers. It will build better, more profitable and longer-lasting relationships.
What else? How do you define Key Account Management?
Curious to see how you can take your Key Account Management skills to the next level? Download this helpful ebook on how to create powerful account plans for your key customers or sign up for a demo of Kapta.