Companies are increasingly recognizing the value of hiring key account managers. This articledefines the role and explores the business benefits that a key account manager can bring to your organization.
What Is Key Account Management?
Key account management, sometimes referred to as strategic account management, involves forming long-standing relationships with valuable customers. Generally, these accounts will make up a large proportion of the organization’s income, and it’s up to a key account manager to offer meetings, dedicate resources and act as a first point of contact for the client.
Essentially, key account management involves a systematic approach to managing and growing your most valued accounts – in order to maximize mutual value and achieve mutually beneficial goals. It is not simply about selling services or products to them – rather, it a process that can generate long-term revenue.
To do this, a key account manager looks at every way in which they can add value to the client. From operations to sales or marketing, the key account manager will explore methods for improving various areas of a clients’ business.
For instance, if your client is running an ad campaign that is falling a little flat – you may offer the services of your design team. If your design team creates a brilliant animation that gets your client’s ad clicked on, they will likely be highly appreciative and look to do more business with you in the future. The aim here is that the client will begin to see you as an indispensable partner – crucial to their own success.
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Benefits of Having a Key Account Manager
For your business to grow, it must protect its most important assets – namely its customers or client base. The work carried out by key account managers is crucial here, as they interactclosely with multiple business departmentsOpens a new window to develop lasting relationships with key accounts.
1. Boost revenue and improve retainment rates
Key account management focuses sales resources on retaining the clients most likely to generate high levels of revenue and profitability. To do so, key account managers build a detailed understanding of their clients’ specific requirements – in turn improving the performance of their business. This dynamic makes the client somewhat dependent on their key account manager – which helps to increase retention rates. In terms of tangible benefits, key accounts are60-70% more likely to closeOpens a new window than new ones. They also spend up to 33% more on average.
2. Heightened account control
Key account managers specialize in building close, long-lasting relationships with their clients. Dealing with a client in such close proximity helps a business to understand its needs and processes – which means it’s possible to offer specific, strategic benefits that strengthen the relationship and increase control over the account.
3. Improved customer satisfaction
By focusing resources to ensure that the needs of key accounts are met, key account managers can prioritize rapid responses, prompt delivery on deadlines and accurate order fulfillment – leading to satisfied clients that stay loyal to the business. Not only are satisfied clients likely to bring more revenue, they are also likely to recommend your services to others.
What Are the Key Account Management Skills
There are certain skills that any successful key account manager should have. Here are some examples:
1. Knowledge of the company
A client needs to feel like they are in good hands and that they are being looked after by someone who knows what they are doing. A good key account manager should have an in-depth understanding of the account they are handling. This includes their finances, products and market position. This knowledge is vital in making business cases to the client – that can show how their propositions or suggestions may add value.
2. Leadership skills
Any effective key account manager will have strong leadership skills that allow them to guide their team on the best way to handle client matters. While a key account manager will be primarily in charge of the account, there’s every chance that the client will meet other members of your business – so everyone must be kept up to speed with the client’s specific needs and the nuances of their business.
3. Analytical skills
An analytical skillset is very important in this role, because key account managers need to approach each client relationship strategically. To build a strong relationship with their key accounts, key account managers must have the ability to collaborate closely with their client to devise long-term strategies that will help to meet business objectives.
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It is widely believed that short-term investment in a key client (in terms of time and resources) can lead to long-term profitability for your business in the future. The basic role of a key account manager is to nurture and build long-lasting relationships with your high-value clients – making it amongst the most important activities in your business.
So, what are you waiting for? Make your business an indispensable partner with effective key account management.
