Question

Scenario: You are a CRM consultant for marketing and CSR agency in Dallas. You've been brought in to discuss the use of Key Account Management (KAM) to several Limited Liability Corporations (LLC).

Directions: Provide a submission describing KAM and the strategies companies can use.

Criteria:

500 word count

Provide 2 external sources of companies using KAM as a CRM strategy

Explain some of the strategies and benefits

Answer 1

CRM focuses on acquiring new customers and keeping them with your business. But, it’s fundamentally flawed in two ways:

• It doesn’t help you grow your existing customer accounts.
• All customer accounts are treated in the same way, despite some accounts being more important to your success than others.

KAM steps in to fill the gaps left over by your regular customer retention strategies. KAM refers to the strategic approach companies take to manage and grow its most important customers. Many key accounts won’t thrive with a generic touch-and-go strategy that works for smaller customer accounts. Key accounts are often willing to grow with the business if you use a high-touch strategy with them and work closely with them. The right KAM software will step above and beyond normal retention strategies, and will assist your key accounts in meeting their goals using your products, services, and consultation.

Benefits:

• Concentration of buying power lies in fewer hands. Big companies are becoming bigger. They control a higher share of corporate purchasing. Smaller companies are cooperating to create purchasing power and leverage purchasing economies. Even major competitors are collaborating to secure better inputs. For example, Procter and Gamble and Unilever, rivals on the supermarket shelf, are cooperating to buy raw materials and input goods such as chemicals and packaging.
• Globalization as companies become global they want to deal with global suppliers, Global companies expect to procure centrally, but require goods and services to be provided locally.
• Customers are demanding that suppliers become leaner. This means they eliminate non-value adding activities. This may mean more reliable, more responsive customer services and just-in-time delivery.
• Doing large amounts of business with a few customers offers considerable opportunities to improve efficiency and effectiveness
• Selling at a relationship level can spawn disproportionately high and beneficial volume, turnover and profit
• Repeat business can be considerably cheaper to win than new business.
• Achievement of cost benefits for both you and your customers
• Streamlined business processes
• Stronger business relationships, enabling greater repeat orders
• Lessons that can be applied across your customer base
• Improved customer satisfaction.

Strategies:

1. Recognize that KAM is an organizational change, not a sales technique.
2. Get high-level buy-in.
3. Appoint a KAM champion
4. Identify your key accounts carefully.
5. Appoint and train your key account managers.
6. Set the right metrics
7. Benchmark and build.

KAM is explicitly being used by multiple Pharma and Telecom companies.

Airtel :- <Post-paid Segment> distribution strategy & planning for the channel and target achievement in defined territory. It is responsible for Acquisitions through distribution channel. It involves managing channel partners; their team; training & development of Channel partners / front line sellers; schemes Operation, account management. Ensuring the policies laid out are implemented as per guidelines.

P&G :- <P&G Oral Care Division> It begins with understanding our professional customers' (dentists and hygienists) business, utilizing available information to explain the product benefits, and finally persuading our customer to purchase and recommend Crest and Oral B Products to their customers.