As a B2B company, a significant part of your revenue comes from key accounts. Focusing on key accounts can deliver the highest growth in the least amount of time, at the lowest cost. Not just over the long term – but NOW.
WHAT – Defining KAM
In the comprehensive Buyer’s Guide to Key Account Management, MarTech Advisor defines these key accounts as “B2B’s most strategic, valuable and long-term clients.” These accounts generally tend to be large, global and matrixed organizations with varying buying units, functions, and verticals.
KAM focuses on the top 20% of customers that bring in 80% of the revenue. Key Accounts are difficult to win and keep, and for many key account managers, it’s more of ‘let’s not lose it’ rather than ‘let’s help these guys grow’ mentality. Doing KAM right is “about evolving from vendor to preferred strategic partner, over the long term, with a value-driven approach.” This value-driven approach is all about helping clients innovate, grow their business or more effectively reach their business goals.
All in all, the only sustainable way to grow your key account revenue is to help them grow their business.
WHY – Revenue Potential of Key Accounts
The long-term growth potential of key accounts can be virtually unlimited. According to CSO Insights, growth rates for strategic accounts are 2X higher and sales cycles are 40% shorter than traditional or net new accounts.
CSO Insights found that companies that engage in effective and ongoing KAM have win rates DOUBLE that of companies without a formal process. Further, companies that use a solution designed specifically for KAM have an 11-point advantage over those using manual efforts.
You could be missing out on huge growth opportunities because your current approach to managing key accounts is missing a critical element….
HOW – KAM Enablement Technology to Drive Exponential Growth
Using manual systems or basic automation for KAM will lead to poor stakeholder alignment, clouded visibility, inaccurate relationship assessment, and low levels of growth.
Key Accounts are highly complex, so it is crucial to use specialized and scalable technology to optimize the revenue potential of Key Accounts. Specialized key account management platforms consist of purpose-built technology that provides a consistent, systematic framework for both account planning AND execution. True KAM Enablement Technology should aim to achieve the following objectives:
- Grow Key Account revenue
- Institutionalize KAM processes
- Consolidate date in one place
- Deliver big picture visibility
- Streamline planning process
- Improve KAM efficiency and effectiveness
The right KAM platform can uncover pipeline opportunities that get lost in the loop.
“Kam Enablement in its present form is driving exponential growth from Key Accounts by enabling Key Account Mangers to optimally manage the complex relationship and growth the business.” –MarTech Advisor
For this reason, KAM Technology has become a strategic necessity for B2B companies.
Related KAM Resources:
Research Brief: Strategic Account Planning Segmentation