Key Account Management Case Study Example | Topics and Well Written Essays - 1500 words

Key Account Management - Case Study Example But these are strategies effective only during the initial stage. Once positioning is established, all efforts must then be centered at maintaining a course whereby profitability is promising, incidental to an effective reason to improve. This is where Key Account Management or KAM is most useful. Key Accounts are those that provide high revenue and critical asset, requiring strong leadership and excellent management skills. KAM is the most practical means of survival in this highly competitive market amidst increasing demand in current economic condition, a way to achieve longevity and create future growth, a way of preserving a good customer relationship. This essay emphasizes the Role of Key Account Management, as a tool and process that equips a company in acquiring and retaining large customer revenue fosters symbiotic mutually profitable and sustainable business relations resulting to a "win-win" situation. In a business that engages i... As such, the goals, missions, value, principles as well as the skills and capabilities inherent among sales personnel should be conveyed properly to every member of the organization. This should be initialized by the company head who takes responsibility relaying imperative matters to all levels of sales director who receives compensation dependent upon the generated sales profit. In his article Key Account Management Strategy, Jay Dwivedi said that "Salespeople learn only the hard way that many big companies really give them the business that they deserve based on the effort that they put in. Therefore, it is important to clearly identify what customers are "key" to your business and then serving them using a well thought out plan" (Dwivedi, n.d.). A good key account management entails constant check and update in terms of performance at least on a quarterly basis, taking into account the total revenue; percentage profits; growth rate of sales in existing product line; value of new products/services; order size distribution and average and price comparison with other customers in the same category. In his web article, the author furthered the importance of understanding, that while support from the corporate office is imperative, the actual development of key account management program is the effort originating from the local executives who know the overall whereabouts of the market. Since this program is constantly evolving in a manner similar to the rate of improvement of the product, continuous feedback from the customers is thus crucial to the alignment of the goals.