Key account management

Definition of key account management

Link between marketing and sales

Analysis and strategy

Customer collaboration

Key account management cont.

• Appropriateness of key account management

Key account management cont.

• Developing a key account management plan

Selecting key accounts

Building strategic relationships with key customers

Developing business strategies for key customers

Key account management cont.

• Key account screening process

Similar to the GE matrix

• Customer attractiveness measures

• Supplier importance measures

Measuring the degree of importance of the purchase from

the customer’s viewpoint (B2B)

• Supplier importance measures

The assessment of the supplier’s strength with the buyer can be used to calculate competitive strength as well as establish an idea of the supplier’s bargaining strength with a particular account.

• Building key customer relationships

Developing business trust

emotional investment

attitudinal investment

competitive supply priority as share of business

• Entry and exit barriers

Tactics used to develop entry and exit barriers

• Developing business plans for key customers Situation analysis

the customer the competition the supply firm

Strategic options Develop a list of options. Prioritise the list. Assess the top priorities against the following criteria:

probability of successful outcome – risk assessment impact on the business and the relationship cost of implementation

• Developing business plans for key customers Action plan

This is an operational plan of how the key strategy will be implemented on a daily basis.

Action plans are specific and mostly include scheduling and staff allocations as well as a way of measuring their effect.

Some action plans also include contingency options to cover unexpected developments disasters and accidents surprises in the industry or competitive environment sudden advances in technology events such as political elections where the result is not currently

known but will possibly affect the industry

• Contingency plans provide ready-to-go decisions when time is critical

• Developing business plans for key customers

Profitability statement

Standard financial statements – indirect costs

Activity-based financial reporting – includes a rigorous measurement of all costs relating to sales, promotion and administration

• Key account management skills

trusted partner

team leader

negotiator

pro-active agent for change

financial expert