[...]... What is a key account? THE KEY ACCOUNT ‘INVESTMENT’ Yes, there is a good chance that your largest customers will also be your key accounts, the 80/20 rule applies here as everywhere, but don’t let the distinction stop there Key account management is as much concerned with the future as it is the present and, as such, it must constantly reassess the grounds on which customers are considered key, or otherwise... a key feature of key account management (KAM), to be explored further in Chapter 7 If key accounts are those customers that promise to take you where you wish your business to be, then identifying them is as important as choosing a portfolio of investments – some must give a quick return, some are longer term, while others are speculative, balanced by those that offer more certainty Key account management. .. them, it wasn’t down to the key account managers, at least not yet, they weren’t even given a chance to perform well Unless the whole organization agrees on who is, and who isn’t a key account, and in particular this needs clarity from the very top, then this journey is likely to become over long, over drawn out, and incredibly frustrating What is a key account? WHY KEY ACCOUNT ? A JUSTIFICATION Some... got to his feet ‘Oh no, they’re very busy down there, and we can’t have reps running about the place I’ll see you in six months.’ And that was final 2 Part I Defining Key Account Management 1 What is a key account? Perhaps you have key accounts already So how have they come by that name? • • • • • • • Are they just the big ones? Are they the ones you mustn’t lose? Are they the ones that offer future... strategies for each group of customers – whether key, key development, maintenance, or opportunistic – and most importantly it recognizes the need for the sales team to free up the energy spent on non key accounts before it can properly turn its attention to the key accounts themselves Many of the examples and case studies have been updated to take account of developments – many of them still being... that they should invest in key account management based on your gut feel? This book aims to provide you with some processes for analysis – use these as well as your gut feel DOES EVERYBODY KNOW? You make the rules, but make sure that your definitions are agreed at the very top 8 Speaking of boards, I was once asked to convince a management board that they should train their key account managers The reason... tools and models, and an improved software package for the all important key account identification and selection matrix described in Chapter 20 x Acknowledgements Without doubt the biggest thanks must go to the excellent clients of INSIGHT Marketing and People with whom I have worked as a trainer and consultant on Key Account Management over the last 10 years I feel sure that I have learnt as much... customers, then it is certainly more than just word play We only need look at the potential limitations of each of these seemingly good definitions to see the point (Table 1.1) 5 Defining key account management Table 1.1 Key account definitions and their limitations The big ones The ones you mustn’t lose The ones that offer future profit The ones your staff focus on The ones where extra effort brings extra... people object to the word account – ‘Surely it should be key customer’, they say Account makes it sound like a bank.’ I justify the word on only one ground, that it represents the customer as an investment made by the supplier in its own future It is an investment of time and effort, in many cases requiring a short-term sacrifice for prospective long-term gains If a key account is an investment,... it – meaning, whom to see and what to say Ken is calling on a new customer – a potential key account He doesn’t know the people at all, but he has managed to make an appointment with one of the buying team He puts that down to his persuasive skills with secretaries and, of course, his natural charm 1 Key account management He’s led into a small office; the walls are bare, the carpet is frayed and the . months.’ And that was final. Key account management 2 Part I Defining Key Account Management 1 What is a key account? 5 Perhaps you have key accounts already. So. DEFINING KEY ACCOUNT MANAGEMENT 1 What is a key account? 5 So, what is the right answer? 6; The key account ‘investment’ 7; Does everybody know? 8; Why key account ?