Key Account Management

Key Accounts:

Recent, new business dynamics have changed strategic account management to a business strategy rather than a sales strategy. In recent years, strategic (or key) account management has become a crucial issue for many companies. Driven by some form of 80/20 rule - 80% of current or potential revenues come from 20% of customers - many firms have come to realise that these customers must be treated very differently from the average customer, and more of a true business partner.

Key account management is more than just selling more to existing clients. It means building vital relationships with strategically targeted clients. But there are important nuances between the terms key account management and customer relationship management.

Too many companies focus so much on one-on-one relationships with specific clients that they lose sight of the strategic overarching focus that effective key account management can provide. A best practice key account management program makes the right clients a part of a mutually beneficial relationship that continuously brings them optimal results.

Consequently many are replacing their annual customer satisfaction survey (with its “one size fits all” and anonymous respondent approach) to regular, formal customer engagement with strategic reviews and two-way appraisals, using metrics that are important to the customer, to objectively monitor key performance areas.

Performware™ encourages a collaborative approach to continuous performance improvement in what are complex business partner relationships, often spread over many geographic locations and with multiple touch-points in both organisations. It facilitates a more strategic way to manage key account relationships, through metric-based ratings by both suppliers and customers that provide a weighted assessment. Results are presented in a dashboard format along with matrices, trend charts and agreed action plans, all on-line to both partners.

Performware™ will assist clients to engage with their key accounts and:

	Use the data to better identify client needs and what is important to them
	Pro-actively mobilise internal resources to meet expectations
	Develop more profitable key account service strategies
	Save costs by not over servicing areas of low importance
	Foster the relationship to improve loyalty, deepen the relationship and promote long-term growth through agreed action plans,
	track performance improvement over time

More information - Implementation

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