Published by MBA Skool Team, Last Updated: May 01, 2013
What is Key Account Management?
Key Account Management is a strategy adopted by firms wherein, the company identifies its key accounts (major customers who form substantial part of company’s sales/business) & provides value-added services to the key-account portfolio. The objective of this approach is to build relations with the crucial customers to nurture the business.
The Key-accounts (Customers) are identified on following criteria:
- Who have stable & regular orders
- Low risk of bad debts
- Who have potential to be lifetime customers
- Who value brand loyalty
- Who are willing to pay for a higher service level
- Prospect: Someone who would be interested in doing business with us
- Customer: Who has done business with us once.
- Supporter: Someone who likes our organization
- Advocate: Who recommends us to others
- Partner: Who works with us on a regular basis
Hence, this concludes the definition of Key Account Management along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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