Are you looking for smart ways of developing long-lasting and robust strategic relationships? Are your recent sales figures worrying you? Having better key account management strategies in place can help you gain better sales volume along with stoic relationships. The benefits of having a key account manager are many. As per a publication in the Harvard Business Review, on an average, customer satisfaction escalates by 20 percent in a span of a few years of triggering the program. On the other hand, revenues and profits are likely to increase by an impressive 15 percent. Here’s why you should focus on starting a program for key account management at the earliest.
Benefits of Strategic/Key Account Management?
Key account management is important for the development of stronger customer relationships. Also referred to as strategic account management, this initiative spans the entire company while laying focus on mutually beneficial relationships. It strengthens the ties between the organization and the most important customers and stakeholders of the company in question. In any company, the key accounts are the most important of the lot as they vouch for a larger chunk of the revenue. According to a senior key account manager at Kapta, 20 -25 percent of customers are most instrumental in revenue generation, often up to 80 percent of the total that makes it to the bottom-line figures of the company’s account. It’s critical to maintain and take good care of these accounts as the loss of even one among them can lead to grave setbacks.
Optimum Utility of Sales Resources
The sales resources of key account management pay attention to retaining those customers that have the strongest likelihood of generating high profitability and revenues. To attain this end, an organization’s sales team takes up a consultative selling approach. Key account managers construct an in-depth understanding of customer requirements to alleviate risks and pave the way for enhanced business performance. This, in turn, increases the dependency of customers on their suppliers; thereby increasing the rate of customer retention.
Improved Growth Opportunities
Companies opting for key account management strategies manage to attain superior customer loyalty, profitability, and growth. When the relationship with key account holders is strong, then stable revenue streams can be achieved with lesser efforts. This is because key customers are interested in placing long-term contracts and generally do not go for ad-hoc purchases. However, it’s important to remember that profitability is not the end result of all key account holders. Therefore, it’s the role of a key account manager to ascertain and review the profitability quotient of the most strategic accounts. A lot goes into the selection and management of key accounts. This makes experienced key account managers almost indispensable when it comes to this specific area of company management.
Attain stronger account control and enjoy increased customer satisfaction once you reach out to the key account managers of your choice. You can also expect accurate order fulfillment, prompt delivery, satisfactory after sales support and service, quick response to inquiries, and many other benefits right away. Invest in key account management services, today!