Chief Marketing Officer at DemandFarm
KAM Glossary (with 65 Definitions)
To help strategic account managers / key account managers /sales professionals enhance their understanding of Key Account Management (KAM), this glossary provides clear and concise definitions and explanations of essential terms, definitions, and concepts related to key account management.
Whether you’re new to Account Management or a seasoned KAM professional, this glossary can help you improve your knowledge of account management & strategic selling strategies and build stronger relationships with your most important customers.
Key Account Management Glossary: 65 Crucial Account Management Terms Explained
Account Hierarchy is the structure and organization of key accounts within a company visualized in a hierarchical system of decision-makers and stakeholders.
Account management is a strategic approach to managing business relationships with key customers or clients. The goal of account management is to develop and maintain long-term relationships that create value for both the customer and the business.
The process of representing customer-centric data points and relationship dynamics in a visual way is known as Account Mapping. It is used by sales and account management teams to understand how customer organizations work, identify key decision-makers, and plan their course of action.
Account Planning is the process of developing a strategic plan for managing and growing key accounts, typically involving collaboration between sales, marketing, and customer success teams.
Account Planning Software
Technology solutions designed to support the key account management process, typically featuring tools for account segmentation, relationship tracking, and opportunity management.
Account reviews for key accounts are regular evaluations conducted by a company to assess the performance and satisfaction levels of its most important customers and develop strategies to improve the overall relationship with the account.
Account Review Meetings
Regular meetings between a company and its key accounts to review progress, identify challenges, and set goals for future growth and collaboration.
The process of dividing a company’s customer base into groups or segments based on factors such as size, industry, and revenue potential.
Account-Based Marketing (ABM)
A marketing strategy that is aligned with account-based sales, focusing on targeting high-value accounts with personalized, targeted campaigns.
Account-Based Sales / Account-Based Selling (ABS)
ABS or Account-Based Sales / Selling is a sales strategy that focuses on targeting a specific set of high-value accounts and tailoring sales and marketing efforts to their unique needs and preferences.
Champions are Individuals within a key account who are advocates for a company’s products or services and are willing to help promote and support their adoption within the organization.
Consultative selling is a sales approach focused on building relationships with customers, understanding their unique needs, and providing customized solutions based on valuable insights and expertise. The goal is to establish trust, drive sales, and help customers achieve their business objectives.
Contract Renewal Management
The process of managing the renewal of contracts with key accounts involving negotiation, pricing, and value proposition analysis is known as Contract Renewal Management.
The process of selling related products or services to existing customers, typically with the goal of increasing revenue and customer lifetime value is called Cross-selling.
Customer Acquisition Cost (CAC)
The total cost associated with acquiring a new customer, including marketing and sales expenses.
The process of mobilizing key accounts to become advocates for a company by getting testimonials, case studies, and referrals.
The rate at which customers stop doing business with a company over a given period of time.
Information and insights provided by customers about their experiences with a company’s products, services, and support.
The path that a customer takes from initial awareness of a product or service to becoming a loyal advocate.
Customer Journey Mapping
The process of visualizing and analyzing the various touchpoints and interactions that a key account has with a company is Customer Journey Mapping. It is used to identify opportunities for improvement and optimization.
Customer Lifetime Value (CLV)
CLV is a metric that represents the total value a customer is expected to bring to a company over the course of their relationship.
The process of maintaining ongoing relationships with existing customers, with the goal of reducing churn and increasing lifetime value.
The process of dividing a company’s key accounts into groups based on their specific needs, preferences, and behaviors, often used to inform targeted sales and marketing strategies is Customer Segmentation.
A function within a company that is focused on ensuring customer satisfaction, retention, and long-term value.
Individuals within a key account who are resistant to a company’s products or services and may actively work against their adoption or use within the organization are Detractors.
Digital Key Account Management
The use of digital tools and platforms to manage relationships with key accounts is Digital Key Account Management. It involves the use of a combination of connected applications like Key Account Management Software, CRM software, data analytics, and communication tools.
Large, complex deals involving multiple decision-makers and stakeholders within a key account, often requiring a high degree of relationship-building and strategic planning.
A key account management strategy that involves engaging senior executives from both the company and the key account in the relationship-building and growth process.
Global Account Management
The process of managing relationships with key accounts across multiple regions and countries, often involving a complex network of decision-makers and stakeholders is called Global Account Management.
An influencer is an individual or group within a customer’s organization who has the ability to affect or shape the decision-making process related to the purchase of a product or service. Influencers are not necessarily the final decision-makers, but they can play a crucial role in influencing the decision-making process by providing information, insights, or recommendations to decision-makers.
Joint Business Planning
A collaborative process between a company and its key accounts for setting strategic objectives, aligning resources, and identifying opportunities for mutual growth.
Key Account Management (KAM)
Key Account Management is a strategic approach to managing and growing a company’s most important and valuable customers, often referred to as key accounts.
Key Account Manager
The person responsible for managing a company’s relationships with its key accounts, often involving a wide range of responsibilities such as sales, customer service, relationship management, and strategic planning.
A company’s most valuable and strategic accounts, characterized by various factors like high revenue potential, long-term partnerships, and complex sales cycles are Key Accounts.
Land and Expand
Land and Expand is a sales strategy that involves landing an initial deal with a customer and then expanding the relationship over time to maximize revenue and establish a loyal customer base.
Large Deal Management
The process of managing large, complex deals within a key account involving a high degree of risk and uncertainty is termed Large Deal Management.
MEDDIC is an acronym that stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion. MEDDIC provides a framework for B2B sales & account management professionals to qualify leads, understand the customer’s buying process, and navigate complex sales cycles.
MEDDPIC is a sales methodology that stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Paper Process, Identify Pain, and Champion. This approach is used to manage complex sales cycles by identifying and addressing key factors that can influence the customer’s decision-making process
Net Promoter Score (NPS)
A metric that measures customer loyalty and satisfaction by asking customers to rate how likely they are to recommend a product or service to others.
A potential sales opportunity or business opportunity within a key account that has the potential to generate revenue or add value to the relationship.
Opportunity management is the process of identifying, tracking, and managing potential sales opportunities within key accounts. It involves a combination of data analysis, relationship-building, and strategic planning.
Organization Chart / Org Chart
Organization Chart or Org Chart is a visual representation of the key decision-makers, influencers, and stakeholders within a key account.
Quarterly Business Reviews (QBR)
Quarterly Business Reviews or QBRs are meetings between a company’s key account management team and their key accounts to review performance, discuss goals, and plan for the future.
The process of analyzing and understanding the dynamics of relationships between a company and its key accounts, often involving a combination of data analysis and relationship-building.
The ability to gather, analyze, and leverage data about a company’s key accounts to inform relationship-building and sales strategies.
The process of building and maintaining strong, long-term relationships with key accounts, typically involving regular communication, collaboration, and problem-solving.
A relationship map is a visual representation of the key players, decision-makers, influencers, and stakeholders within a customer’s organization, along with their roles, relationships, and influence on the account.
Revenue Operations or RevOps
Revenue Operations, or RevOps, is a strategic approach that aligns sales, marketing, and customer success teams to optimize revenue generation. It involves breaking down silos, streamlining processes, and using data analysis to make data-driven decisions for efficient revenue growth.
The process of providing sales teams with the tools, training, and resources they need to engage with key accounts effectively and close more deals, often involving a combination of technology and content development.
Sales Enablement Platforms
Technology solutions designed to support sales teams with training, content, and tools that help them engage with prospects and close deals, often including account-based selling features.
The process of estimating future sales performance based on historical data and current trends.
A visual representation of the sales pipeline, typically divided into stages such as awareness, interest, consideration, and purchase.
A structured approach to selling that is designed to optimize sales performance, often involving a specific set of sales techniques and best practices.
Sales Performance Metrics
Data-driven measurements of sales performance, typically including metrics such as win rate, average deal size, and sales velocity.
The sequence of stages that a prospect goes through as they move from being a lead to becoming a customer.
The set of steps and activities that a sales team follows to move a prospect through the sales funnel and close a deal.
Solution Selling is a sales methodology that involves identifying the customer’s pain points and providing a customized solution to address those pain points.
SPIN Selling is a consultative sales methodology developed by Neil Rackham, which focuses on identifying the customer’s situation, problems, implications, and needs. This approach is effective in complex B2B sales environments and aims to build trust and credibility, demonstrate expertise, and create value for the customer.
A process for identifying and analyzing the various stakeholders involved in a key account, including decision-makers, influencers, and champions.
Strategic Account Management
A long-term, collaborative approach to managing a company’s most important accounts, focused on building and maintaining strong relationships with key decision-makers.
Strategic Account Planning
Strategic Account Planning is a comprehensive planning process that encompasses all aspects of key account management, including relationship management, opportunity identification, and value creation.
The Challenger Sale
The Challenger Sale is a sales methodology developed by Brent Adamson and Matthew Dixon. This sales methodology focuses on challenging the customer’s thinking, offering new ideas, and building trust and credibility by positioning the salesperson as a trusted advisor.
The process of selling additional products or services to existing customers, typically with the goal of increasing revenue and customer lifetime value is called Upselling.
A statement that articulates the unique value that a company’s products or services offer to key accounts, often tailored to their specific needs and pain points.
Value Selling is a sales methodology that emphasizes demonstrating the unique value proposition of a product or service and focusing on the business outcomes and benefits that the customer will realize by using it.
A process for identifying potential areas of growth and opportunity within a company’s key accounts by analyzing their unmet needs and pain points.