You’re at the right place if you are looking for a challenge or want to know who you hire to manage your account. The management of key accounts requires a variety of skills. Close sales, nurture relationships, and have excellent communication skills and market knowledge. It doesn’t end there. We’ve listed the top 9 qualities of a key account manager.
What is Key Account Management (KCM)?
Key account management is an approach that focuses on delivering value over the long term to your “key customers”. It involves a systematic way to manage, retain, and grow these most valuable clients. In addition to maximizing mutual benefits, it is important to maximize mutual value.
Key account management can be a more profitable investment than generating new sales. The “key accounts” you have are those clients that bring in the most revenue.
The saying “80% of revenue comes from only 20% of clients” is true. It’s important to take care of the 20% to ensure long-term income.
Key Account Management vs Account Management
While both roles are concerned with managing client accounts, Key Account Management is more involved and involves a strategic collaboration and deeper engagement with a select number of important clients.
Explore their differences
Key Account Management (KAM) and Account Management are two different approaches to managing relationships with customers in a business environment. They share many similarities but differ in terms of their strategic focus and range.
Account management involves managing a client portfolio, ensuring customer satisfaction and maximising sales opportunities.
Key Account Management, on the other hand, focuses on a small group of strategic clients that have a high growth potential and generate significant revenue.
KAM is about building long-term relationships, understanding the needs of clients and creating tailored strategies that meet their requirements.
Key Account Management’s primary goal is to create mutually beneficial relationships with customers that will drive loyalty, retention and significant business growth.
Account Management is a broader approach to customer management, but it requires a more strategic and personalized approach.
Account Manager vs Key Account Manager: What’s the difference?
The roles of KAMs and traditional account managers are not the same.
Account managers are not as important as key account managers. Key account managers work with high revenue clients to maintain and build relationships. The account manager is usually responsible for smaller revenues, but both roles are focused on repeat sales and post-sale relationship building.
The account manager will then treat each customer in the same way. The key account manager, on the other hand, must be able to tailor products to each customer’s specific needs. The KAM must understand the company of their key customers, since they bring in the most revenue. They then offer services and products that meet those needs.
Their responsibilities are the main difference between a traditional account manager and a Key Account Manager. The key account manager is more likely to have (and to gain) than an account manager.
Do you want to start your career as an account manager in Kansas?
Kansas, located in the central United States, is a state known for its expansive prairies and diverse business and economic landscape, with thriving sectors including agriculture, aviation, energy, manufacturing, and healthcare, making it an attractive destination for businesses seeking opportunities in the heartland.
It is highly recommended that you give serious thought to obtaining errors and omissions insurance in Kansas. This is particularly crucial for account managers operating within the state, as they face numerous potential risks, including the possibility of facing lawsuits from clients. By securing errors and omissions insurance in Kansas, you can safeguard both your professional trajectory and your financial stability.
Why is Key Account Management important?
The lifeblood of every organization is revenue generation. Key Account Management aims to increase revenue through the retention of top-earning clients.
The 80-20 principle also relates to KAM. It is believed that 20% of all your accounts account for 80% (revenue). It is a fact that most businesses are aware of. There are many more benefits to focusing on key accounts management. Discover them below.
- Improves customer satisfaction. Not only are satisfied customers loyal and repeat buyers, but they also recommend your products to other people in the industry.
- Gain a competitive advantage in the market: By establishing strong relationships with key clients, KAM gives businesses a strategic edge over their competitors. This leads to superior financial results.
- Increases customer lifetime value: The greater the value you provide to your customers, the more willing they are to invest in their relationship.
- Improves customer relationships: By getting to know your customers, you will build better relationships. This will allow you to meet their requirements and solve their issues with ease.