What is Key Account Management?
We are always asked for a definitive key account management definition because every where you look there are many different definitions. I would say that the most pragmatic and practical key account management definition that I have come across is that it is “Investing extraordinary resources in a selected group of accounts to deliver extraordinary results”. Simple enough, but there is great deal of complexity that we need to understand before we can get to such a simple definition.
1. When we say resources we don’t just mean cash, we mean human capital, time, money etc
2. When we say results we don’t just mean sales, we mean sales, profitability, customer satisfaction etc
3. When we say a selected group of accounts then we need to have a simple but robust way of selecting those accounts. We also need a clear strategy on how to work accounts which we have defined implicitly as non key accounts. This will depend on what our particular strategy is, i.e. is it a launch strategy , a market leadership strategy etc.
I could go on and I usually do, however that’s for another day, suffice to say that we focus on building tools that make the complex simple. Feel free to comment on our blog posts or any of our social media sites to tell us your key account management definition.