First step Key account manager / KAM must do is to formulate account strategy through account analysis to formulate a plan that results in maximum responsiveness to account’s needs This takes place by two factors:
- Account attractiveness: What makes you want to deal with these accounts Like, Size: Unit, value, profit, Etc.
- Relative strength: What makes these accounts want you?” Like price, services, quality, Etc.
This 4 by 4 matrix will yield 4 accounts called: KAISM: The key account identification and selection matrix
- Key accounts / Strategic partner( Invest) are those where rate us more than our competitor and attraction is mutual
- Key development / Future stars (selectively invest) accounts are those that we have strong ambitions for but they prefer one of our competitors
- Maintenance account (maintain) are those that rate us highly but we don’t view as our more attractive account
- Opportunistic accounts / (manage for cash) are those where neither regards the other as of great attraction
Different sales and service strategies must be developed for each account type that allow for that reallocation of resources. Identify the possible ‘bases’ for distinction, things by which you will distinguish your offer, your services, to each account type:
- Frequency of contact
- Nature of commitment
- Investment
- Services
- Pricing