Description
Primarily, key account management means the stewardship of large customers with high value customers through special account manager
Key Account Management (KAM)
1 Company 2
Middlemen - Agent - Importer
5 6
3 4 Customer
1 2 3 4 5 6
Agents: Distributor management and control Importers: Key Account Management, after sales-service Market information, reporting Presenting goods and concepts, marketing, after sales service, Key Account Management Customer Relations Management, Customer satisfaction analysis Key Account Management, after sales-service Customer satisfaction analysis, Customer Relations Management
Key Account
• A customer of vital importance to us for achieving our own strategic objevtives
• with whom we can establish relations heading at achieving the customer´s own strategic objectives, short term as well as long term
Key Account Management (KAM)
• Identify and select key customers (key accounts)
• Offer selected key accounts special relations and attention (technics, products, logistic, development, service, marketing, etc.) • Appoint qualified persons (key account managers) to be responsible for foreseeing and ensuring the best possible relations to key accounts - as well as protecting these relations by establishing effective and profitable competitive advantages
Key Account Management (KAM)
Traditional
Supplier Customer
KAM
Supplier Customer
Sales
Buying
One face to the customer
Cooperation across lines between relevant members of organisations
74
EXP EP Bolivia
Module3:International M arketing
New turnover New customers - existing markets
- new markets
Keep existing customers
Just-in-time delivery
Total Quality management
Keep existing customers Optimise efforts
Supply Chain Management
Customer Relations Key Account Management Management
World trends
• Internationalisation/globalisation • Mergers, joint ventures, alliances • Outsourcing of production • Specialisation • More complex products • Reduced number of potential customers
Keeping existing customers
Company Customer
Customer Company
Why Key Account Management?
Offfensive, proactive reasons • Focus strategic important customers • Long term consolidation • Mutual dependency through integration and adaption • Barrier towards competitors Passive, reactive reasons • ”Forced” by competitors´ introduction of KAM
Are there differences between a customer and a key account?
Yes, because - Customers are different - Key accounts are more important than the others No, because - A customer is a customer! - All customers must be treated equally
- We have better relations to some of our customers (or can get)
- Wee will not be under anybodys thumb
From customer to key account
Criterias for selecting
• Long term evaluation
• Overall customer potential (customer-SWOT) • Harmony between own and customer´s strategic objectives (e.g. price/quality, product development) • Does customer have the will to be a part of an integrated cooperation with the supplier? • Is customer interested in becoming a key account?
4 basic kinds of KAM
• Contact-KAM • Coordinator-KAM - Passive coordinator-KAM - Active coordinator-KAM • Integrated KAM
Contact KAM
•One face to the customer • Main objective: Obtaining information in order to reduce risk • No essential adaption to the individual key customer • Low direct KAM-investments • Often personal relations between the two contact persons • Focus: Sales and profits • Might be first step towards ”real” KAM
Passive coordinator-KAM
Customer gradually takes initiative (KA-manager ”bottleneck”?) Customer typically rather big Main focus on sales and profit Developing customer adapted activities (at request of customer) Potential personal relations at some levels
Active coordinator-KAM
• Some adaption to customer, initiated by supplier • Adaption to customer based on information about customer´s objectives and strategy • KAM-function varies from key account to key account • Focus sales/profit through supporting customer´s strategies • KA-manager is internally supported by permanent back-up as well as by ad hoc teams • High contact frequency
Integrated KAM
•Integrated joining of forces often necessary for solving problems •KA´s competitors are probably not supplying key account •Investments on both sides •Very open contact •Extensive customer adaptation •Many and frequent personal relations •Focus: Profitable customer relation - Customer´s profit and benefits
Customer´s policy towards suppliers
Traditional focus • Price, quality, safe deliveries • Minimize uncertainty through safe choices Revised focus (KAM) • Buying as one of the means to achieving strategic objectives • Supplier´s long term potential • Supplier´s interest in development and involvement • Longer term merging of interests
4 basic kinds of customers
Low High
Focus: Differentiation
High
Defender
Focus: Costs and prices
Low
Analyzer
Reactor
Prospector
Defender
Main focus: Costs and prices
Characteristics - Price is very central - Mainly product oriented - Changes willingly supplier in case of better offers - Don´t mind having one supplier making specifications and samples - placing orders with another - Translates ”extra performance” to ”lower prices”
Attitude towards co-operation - Does not willingly establish strategic co-operation with external partner
- Co-operation must mean lower prices - otherwise no interest
- Co-operation may threaten control over own company
Prospector
Main focus: Differentiation
Characteristics - Differentiate, ”always first in line” - Extrovert - Strategies are based on competitive situation - Innovative - Works strategically Attitude towards co-operation - Old internal routines are barriers - Own position might be strengthened through external co-operation - Loyal, enters willingly external co-operation on a long term basis - Changes supplier if more innovation and kompetence is offered
Analyzer
”as well/as”
Characteristics - Mix of ”Defender” and ”Prospector”
- Careful and cautious
Attidude towards co-operation - Positive towards co-operation constantly watching own benefits
- Loyalty is limited, and is based on content of co-operation and own benefits - Acquisition of supplier´s competences is important
- Rather safe than first
- Cost saver - Specifies carefully - Effective control
Reactor
”neither/nor”
Characteristics - Is often lacking defined goals and strategies
- Often led by ”what seems to work OK” - Just sitting back
Attitude towards co-operation - Open mind towards new projects and activities
- Welcomes competences from outside, ”you always learn something from the good ones” - Positive and co-operative
Is KAM relevant?
• Market structure (historical, actual, future) • Customer structure • Evaluation of competitive situation
Can KAM be implemented?
• Management • Organisation • Resources, internal qualifications
KAM-implementation
• Select key customers • Evaluate key customers´ objectives, strategies and attitudes (satisfaction, loyalty) • Define own advantages and benefits
• Define objectives and strategies for Key Account-activities
• Define KAM-organisation
doc_897177168.ppsx
Primarily, key account management means the stewardship of large customers with high value customers through special account manager
Key Account Management (KAM)
1 Company 2
Middlemen - Agent - Importer
5 6
3 4 Customer
1 2 3 4 5 6
Agents: Distributor management and control Importers: Key Account Management, after sales-service Market information, reporting Presenting goods and concepts, marketing, after sales service, Key Account Management Customer Relations Management, Customer satisfaction analysis Key Account Management, after sales-service Customer satisfaction analysis, Customer Relations Management
Key Account
• A customer of vital importance to us for achieving our own strategic objevtives
• with whom we can establish relations heading at achieving the customer´s own strategic objectives, short term as well as long term
Key Account Management (KAM)
• Identify and select key customers (key accounts)
• Offer selected key accounts special relations and attention (technics, products, logistic, development, service, marketing, etc.) • Appoint qualified persons (key account managers) to be responsible for foreseeing and ensuring the best possible relations to key accounts - as well as protecting these relations by establishing effective and profitable competitive advantages
Key Account Management (KAM)
Traditional
Supplier Customer
KAM
Supplier Customer
Sales
Buying
One face to the customer
Cooperation across lines between relevant members of organisations
74
EXP EP Bolivia
Module3:International M arketing
New turnover New customers - existing markets
- new markets
Keep existing customers
Just-in-time delivery
Total Quality management
Keep existing customers Optimise efforts
Supply Chain Management
Customer Relations Key Account Management Management
World trends
• Internationalisation/globalisation • Mergers, joint ventures, alliances • Outsourcing of production • Specialisation • More complex products • Reduced number of potential customers
Keeping existing customers
Company Customer
Customer Company
Why Key Account Management?
Offfensive, proactive reasons • Focus strategic important customers • Long term consolidation • Mutual dependency through integration and adaption • Barrier towards competitors Passive, reactive reasons • ”Forced” by competitors´ introduction of KAM
Are there differences between a customer and a key account?
Yes, because - Customers are different - Key accounts are more important than the others No, because - A customer is a customer! - All customers must be treated equally
- We have better relations to some of our customers (or can get)
- Wee will not be under anybodys thumb
From customer to key account
Criterias for selecting
• Long term evaluation
• Overall customer potential (customer-SWOT) • Harmony between own and customer´s strategic objectives (e.g. price/quality, product development) • Does customer have the will to be a part of an integrated cooperation with the supplier? • Is customer interested in becoming a key account?
4 basic kinds of KAM
• Contact-KAM • Coordinator-KAM - Passive coordinator-KAM - Active coordinator-KAM • Integrated KAM
Contact KAM
•One face to the customer • Main objective: Obtaining information in order to reduce risk • No essential adaption to the individual key customer • Low direct KAM-investments • Often personal relations between the two contact persons • Focus: Sales and profits • Might be first step towards ”real” KAM
Passive coordinator-KAM
Customer gradually takes initiative (KA-manager ”bottleneck”?) Customer typically rather big Main focus on sales and profit Developing customer adapted activities (at request of customer) Potential personal relations at some levels
Active coordinator-KAM
• Some adaption to customer, initiated by supplier • Adaption to customer based on information about customer´s objectives and strategy • KAM-function varies from key account to key account • Focus sales/profit through supporting customer´s strategies • KA-manager is internally supported by permanent back-up as well as by ad hoc teams • High contact frequency
Integrated KAM
•Integrated joining of forces often necessary for solving problems •KA´s competitors are probably not supplying key account •Investments on both sides •Very open contact •Extensive customer adaptation •Many and frequent personal relations •Focus: Profitable customer relation - Customer´s profit and benefits
Customer´s policy towards suppliers
Traditional focus • Price, quality, safe deliveries • Minimize uncertainty through safe choices Revised focus (KAM) • Buying as one of the means to achieving strategic objectives • Supplier´s long term potential • Supplier´s interest in development and involvement • Longer term merging of interests
4 basic kinds of customers
Low High
Focus: Differentiation
High
Defender
Focus: Costs and prices
Low
Analyzer
Reactor
Prospector
Defender
Main focus: Costs and prices
Characteristics - Price is very central - Mainly product oriented - Changes willingly supplier in case of better offers - Don´t mind having one supplier making specifications and samples - placing orders with another - Translates ”extra performance” to ”lower prices”
Attitude towards co-operation - Does not willingly establish strategic co-operation with external partner
- Co-operation must mean lower prices - otherwise no interest
- Co-operation may threaten control over own company
Prospector
Main focus: Differentiation
Characteristics - Differentiate, ”always first in line” - Extrovert - Strategies are based on competitive situation - Innovative - Works strategically Attitude towards co-operation - Old internal routines are barriers - Own position might be strengthened through external co-operation - Loyal, enters willingly external co-operation on a long term basis - Changes supplier if more innovation and kompetence is offered
Analyzer
”as well/as”
Characteristics - Mix of ”Defender” and ”Prospector”
- Careful and cautious
Attidude towards co-operation - Positive towards co-operation constantly watching own benefits
- Loyalty is limited, and is based on content of co-operation and own benefits - Acquisition of supplier´s competences is important
- Rather safe than first
- Cost saver - Specifies carefully - Effective control
Reactor
”neither/nor”
Characteristics - Is often lacking defined goals and strategies
- Often led by ”what seems to work OK” - Just sitting back
Attitude towards co-operation - Open mind towards new projects and activities
- Welcomes competences from outside, ”you always learn something from the good ones” - Positive and co-operative
Is KAM relevant?
• Market structure (historical, actual, future) • Customer structure • Evaluation of competitive situation
Can KAM be implemented?
• Management • Organisation • Resources, internal qualifications
KAM-implementation
• Select key customers • Evaluate key customers´ objectives, strategies and attitudes (satisfaction, loyalty) • Define own advantages and benefits
• Define objectives and strategies for Key Account-activities
• Define KAM-organisation
doc_897177168.ppsx