Posted in Marketing and Strategy Terms, Total Reads: 104
Definition: Key Account
Key accounts are viewed as separate business accounts from the other accounts that the firm manages, and are different from regular sales accounts, which give substantial profit for a number of years through repeat business.
In Key Account management, the relationship between the company and its important customers is defined. For this, the firm has to identify and select its important customers, and then focuses on managing these accounts and improving relations with them, so as to benefit both of them, i.e., in a mutually beneficial manner.
To implement key account management properly, there needs to be a proper coordination and understanding between the different departments. For example, if a priority key account holder needs priority access to different products, the operations department has to be cooperative to satisfy their requirements.
Key account management is emerging these days as an integral part of firms, and is crucial to its success. A key account organizational chart is a tool which can help with the key account management.
It would be ideal to clarify strategies with the top management. Defining the impact on every part or department is another important step in adopting Key Account management. The key metrics and the key performance indicators (KPI) must also be clearly defined. Executives should be mentored and coached for maintaining Key accounts in an efficient manner.