A KAM program must deliver business results that are quantifiable. In this video, learn ways you can improve and grow your business through measuring results.
- A key account management program must deliver business results, so it's important to have the right measurements in place to find ways to improve. When measuring any business activity, I like to look at two broad areas, the inputs to that activity, as well as the outputs. In other words, don't just look at product sales from the key account. You want to measure time and resources that you put into the account as well. Measuring inputs and outputs gives you a more complete picture.
Let's start with the inputs. Take a look at your key account plan that describes in detail who you're targeting in the key account and what you're trying to achieve. For each target, you should have outlined all the activities that you plan for a specific time period, and these include events, programs, and so on. Well, the simple question is did you or did you not do that activity? And if not, how could you improve next time? You may also want to measure the number of targets actually reached within the account.
Are you forming relationships with enough people, and are they the right people? Now, for outputs, it's tempting to jump right to measuring the sales revenue, but let's remember why you have a key account program. The number one goal is, or should be, customer retention, so it's important to have a good idea what factors are important for that account to stay with you forever. For example, you may want to survey overall customer satisfaction with your products and services, and don't just survey the key players.
You need to know if the everyday rank-and-file employees are happy with you. If not, they'll start to complain, and that might lead to losing the account. Now, here's a tip. Knowing that the account is generally satisfied is fine, but I recommend you go deeper by asking a question like this. How important do they see your company's contribution to the success of their company? Is it high or low? And is that perception changing over time? Now, this may be the most important measurement for a key account manager because it tells you how vulnerable you are and whether your company can withstand big changes at the key account.
If a new CEO came in or if the account announced massive layoffs, would your company be at risk of losing the account because of that change? You're likely to weather the storm if the customer sees you as an indispensable partner, and that's what great key account managers do. They lock in loyalty for the long term, so your company can continue to thrive.
- Understanding key account management
- Understanding the key account management process
- Developing criteria for key account status
- Selecting key accounts
- Defining a vision, mission, and strategic focus
- Identifying the key account management task
- Communicating your strategy
- Hiring, training, and rewarding key account managers
- Developing a call plan for key accounts
- Measuring key account results