KEY ACCOUNT MANAGEMENT

WHAT IS KAM???
Key account management is a strategic business approach with the objective of ensuring long-term and sustainable business development through profitable partnerships with strategically important customers Key account management is not an isolated business process. It is an intégrative élément of the business strategy.

STRATEGIC IMPLICATIONS
KAM as core to business: For KAM to be able to deploy its full potential and benefits, it is crucial that it be positioned in the organization as a core to the business.

Capacity building: Developing internal capabilities and capacity in terms of knowledge, structures, systems and tools is a requirement for long-term success

OBJECTIVES OF KAM
•Maximizing the sales velocity, this improves the utilization of the sales resources and understanding the importance and nuances of managing account. •Increasing average deal size or the wallet share,we achieve with each customer, while at the same time minimize price erosion by developing specific process to build and manage accounts •Increasing customer loyalty and customer retention ,this in turn drives down overall cost of sales. •Thereby, be value partners to our customer.

THINK LIKE YOUR CUSTOMER: Managing & selling to key accountsBussiness Acquisition & Retention

HOW TO GO ABOUT IN KAM???

penetration

New Product Development

Market Extension On Product Lines

Market Development

THE BUSINESS PARADIGM

MANAGING KEY ACCOUNTS
Business objective Managing the future must be continual process of analysis, reassessment and change KAM is about managing people Mrkting Oppurinities Business resources

SELLING MILLIPORE SERVICE

THINK LIKE YOUR CUSTOMER: Managing & selling to key accountsUnderstanding what customer really wants

THE NEED VS RESULT ANALYSIS
Current State Desired Future state

“c” buys what they need to,so they can get what they want. They don’t want a solution ,what they want is result.

THE BUSINESS ACTION DRIVERS

WHY KAM???
1.KAM is a process for “finding new opportunities” 2.KAM is a means to provide uniform service and selling solutions 3. KAM is a means which focuses on providing solutions for overcoming barriers

THE KAM PROCESS

WHO IS OUR PROSPECT???
ASSESSMENT CRITERIA • Present contributions • Customer expansion/ diversification • Referrals • Conformation to regulatory norms • Credit worthiness • R&D • Geo- reachability • Pricing & profitability POINTS SCORE

THINK LIKE YOUR CUSTOMER: Managing & selling to key accountsSelling to key accounts

PORTER’S ANALYSIS

Threat Of New entrant s

Bargaining power of supplier

Competitive rivalry

Bargaining power of buyer’s

Threat of New substitut e

SELLING TO KEY ACCOUNTS

ASPECTS OF SOLUTION SELLING
• • • • • • Relatively long period of time Unclear needs and demands What is the right solution. Large number of people are involved both in the customer’s organization and our company More efforts are required to form a tailor made solution and “sell” it to the customer. There is a need for a more structured planning.

New solu adaptatio n Small adaptatio n

THE DIMENSIONS OF SOLUTION SELLING
Selling solutions

Marginal sales efforts

choice Std. products sellers No. of normal efforts

large

critical

SOLUTION SELLING

THINK LIKE YOUR CUSTOMER: Managing & selling to key accountsManaging key accounts

LET’S CONSIDER SOME POSSIBLE OBJECTIVES
• • • • • Retention of customers in a competitive environment Growth through entry into new customers Growth with existing customers Managing customers with a cross territory perspective Going beyond product and benefit selling .

ACCOUNT STRATEGY PLAN

THE KEY ACCOUNT RELATIONSHIP DEVELOPMENT MODEL
HIGH

KAR SUCCESS %

LOW STRATEGY HIGH

LOW

KEY ACCOUNT MANAGEMENT THANK YOU