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“Account Management is the process of maximising the return on your investment in a customer by defining and actioning appropriate plans that will
enable you to build on the present, to manage the future "
Key Account Workshop
Free White Paper on Key Account Management
Research shows that structured and resourced account strategies
and plans deliver consistently higher revenues and margins, lead to higher customer satisfaction levels and hence to lower customer attrition rates.
Key account management helps companies gain the status of strategic
rather than commodity supplier to their major customers, guarding margins and improving security of retention.
Retaining 5% more customers boosts profits between 25% and 85%.
20% of customers generally produce 80% of revenues, so losing such key accounts is expensive and damaging to the bottom line. Proper key account management maximises the chance of keeping these key accounts.
The top 10% of customers by revenue will be regularly running at a loss
due to the increasing level of support they require and because 4 out of 10 firms cannot track profitability accurately. Key account management concentrates on how to develop profitable customers.
A focused approach to key account management dramatically increases
both opportunity costs and direct costs of sale and leads to a major fall in the win ratio. A fundamental part of good key account management is a structured and prioritised qualification and bid process. |
