Q1.

Why does Siemens wants to provide KAM programs to its customers what are the key
benefits & risks of KAM approach?
A1. Siemens wants to provide KAM programs to its customers so as to get closer to its
customers and understanding what they exactly want and to build relationship with them. By
doing so they can increase their customer satisfaction and revenues. Some mature programs
can even yield twice the growth. This would increase their profits and working capital of the
company. Siemens wants to provide tailor made solution to its customers for better value
creation.
The benefits can be that it would create a long term strategic planning and build loyal
customers for lifetime. It would create difficulties for existing competitors to enter in the
business. The company would be able to sell more by cross selling or upselling products to
existing customers. This would inturn increase profits, revenue for the company. Their market
share would increase. They can maintain the prices internationally. They will formulate new
strategy and plans as to how to involve the customer. It would give a better understanding of
the customer needs and wants and to keep the customer happy.
The risks of KAM approach is that it is time taking and customer knowledge plays a vitol role in
this approach. So any alteration in the knowledge may lead to wrong calculations. The correct
use of information technology is needed. There has to be right balance between the sales
people and KAM. The lower needs to be well trained with KAM approach. One more risk is of
conflicting objective both internally and externally.

Q2. Why does Siemens choose EUROBRIC to be a key account ? Is Eurobric a qualified key
account?
A2. Siemens has chosen EUROBIC to be a key account as it was the largest producer of stanmet
and produced 8% of world’s output. It focused mainly on operations and purchasing that was
quite profitable. It had production sites in more than 60 countries. Any investment above US$2
million had to gain approval from a central investment committee. Eurobic had a good
knowledge of the client. 3 million euro client per year for Siemens who supplied worldwide a
variety of projects and solutions. 75% of Siemens BI Metal Technology sales came from
Eurobric.