Key Account Management

Purpose Provoke Thought/s Support structured understanding Ideas Augmenting - KAM

When asked why he robbed banks, a notorious bank robber answered “because that is where the money is” I wonder then what is key accounts 

KAM Enhance customer’s value Generate and sustain more revenue! (Dominate) Buyer Competitor Supplier Business of KAM

Client Profile Operations & Technology External factors Service Delivery Model Products & Services Culture Brand Perception Firm’s Identity Firm’s Heritage Delivery Framework - Coefficients

ACCOUNTS PROFITS Is KAM – 80/20 Rule ?

Is so…!

Internal Drivers External Drivers

Stop 1 …for summary

Summary Key customers – Few and not too many Relationship – Key insights customer business, behavior and buying pattern Added value propositions – Impact objectives, drivers and challenges Aligned business – Thwarts competition

By Concept ….KAM

KAM As best practice – prevalent in many industries and in various forms Commonly used models - bow tie and diamond base Powers competitive advantage - How For future – Pension policy - How

KAM In long term – Natural hedge against business risk (diversify revenue & cost) In Med term – As first line of defense – Certainly of revenue and coverage of risk exposure defense For short term – Establish thresholds Guaranteed (Business or floor volumes) Longer notice periods for changes in volumes Contracts can enable compensation against loss of business or volumes

Stop II…for summary

Summary II No cookie cutter solution Your solution is revenue With X factor Focus on key to avoid blind alleys – Many factors effect our customer/business Challenges make opportunities as solutions

KAM as Process

Account Strategy

Top Box Promising Neutral In Jeopardy

Account Strategy U r not just the one ready to serve – Super customers expect super service Customer is well educated expects A. share risk B. Variablise cost C. Converge Technology (Platform based) D. Multiplier effect – Not just divisional profits E. Manage expectations F. Manage measurements Escalation and remediation process – Assembling, configuring and managing solutions

Relationship Plan Super customers provide super opportunities Super customers – Demanding and sophisticated Seek flexibility and involvement No more – Just a lift and shift scenario First motivation – Cost savings Define what not outsource – Productivity Process improvement – Drive innovation Unlock Value Seek efficiency – Technology and Process integration

Opportunities Mgt Protect your best customer Invest in capability and competency Defend top line to protect bottom line Define clearly operating cost algorithms Don’t shy away from investments Establish partner network Operation review rhythms with tollgates Customers for cost savings, seek quality and stay in for operational excellence

Differentiator Size does matter – volume, propensity to pay for quality, scale, diversity etc. Level of technology – In service delivery Risk Management Techniques – Process and data Process consulting approach – Practitioner’s view point

Measure Performance &Customer Satisfaction

Flips in KAM Get the deer in the headlights – look from time to time Road you take to reach is as important as destination Volume Mismatch (attn., support service, response time etc.) Time Mismatch Directional Mismatch

Deadly Sins Sizeism – “Big” doesn’t mean key Short termism – Specially from the top No measures for customer profitability Silo mentality with managers Non-Streetwise support team

Suppliers business strength with the customer Customer Attractiveness High Low low High Bread and Butter maintain Volume manage for cash Future Starts selectively invest Strategic Invest

Supplier positioning Relative Spend Low High High Risk Significance

Satisfaction Customer

Stop 3 …for Summary III

Proof of service

Important View

Solutions – Clear and specific ; Put them to elevator test Pluck low hanging fruits first – Gain quick buy ins Careful with promises Hit singles and always look for home runs Sell without selling big picture view – Feeling swamped ; take a step back I don’t know – Less costly Don’t accept “I have no idea” Smart guessing, sharp disguised Qs can work

Team Right mix Bonded team – It’s V that “Cs” C Regulate team temperature – Boost morale Follow bill clinton’s approach viz., to client – U say problem is difficult and to the team you say – I share your pain, solider on

Selling: Your presentation – bill audience’s interest and not patience Path of logic – Clear and easy to follow Diminishing marginal returns to your effort – Don’t let the best be the enemy of good Not just the right answer but sell the right answer

Influence - Avoids influenza to your deal: Keep the client team on your side Know to deal with “Liability” client team members Engage the client in the process and purpose Get the buy in thru-out Be rigors about delivering value

No cookie cutter solutions Make sure your solutions fits your client Sometime you have to let the solution come to you Don’t boil the ocean for a handful of salt Many factors effect our business/customer – Focus on key to avoid blind alleys 80/20 rule applies whether for wealth creators or business from customers – Some times the bread falls butter-side up

Monday, June 8, 2009 44