On-Demand Webinar: Unfiltered take on AI in Account Planning: Meet DemandFarm’s KAM AI Benefits of Digitalizing Your Key Account Management Program
The quest for the right solution is never-ending in B2B spheres, as organizational needs constantly change and evolve. Large organizations rely on technology to streamline their processes and improve their efficiency – and are constantly looking for tools that can help them in this regard. With digital key account management tools, sales teams can offer numerous advantages over traditional methods, including increased security, convenience, and visibility. Buyer behavior has drastically changed over the last couple of years, and a significant portion of post-pandemic interactions are expected to remain virtual. This shift in behavior has brought key account management to the forefront of many organizations’ strategies, prompting CSOs and CROs to rethink their approach to managing accounts. With key account management evolving and becoming more complex, organizations are turning to AI as a key differentiator and enabler. Meeting buyer needs with digital account management solutions Buyers have significantly changed their behaviors, and more personas are coming into the digital key account management sphere. It’s becoming critical for organizations to leverage technology to enable their employees to develop better connections with buyers. However, adding additional steps or work for the sales team can create friction and become a significant hurdle for organizations to leverage technology better. To create a frictionless and seamless process, organizations must evaluate the additional work that gets added on to the sales team when they are selling. This approach is not just about technology; it’s about how technology and processes can work together to create a better experience for everyone involved. Large clients are looking for solutions that can help them drive optimize processes, streamline growth and reduce costs. However, the decision-making process can be complex, involving multiple stakeholders, technical buyers, and influencers. As a result, companies need to have an effective key account management tool that can help them navigate this complex landscape and identify the key decision-makers within an organization. Check out more on the DemandFarm account planning masterclass on ‘Making Account Plans Actionable, Measurable and Sustainable’ here. Managing key accounts digitally is important for companies, as conversations have largely moved online – rendering the traditional methods powerless. Having tools to visualize the customer’s organizational structure, understand the influences among stakeholders, and identify key decision-makers provides much needed context for sales teams. With this context, key decision makers can use relationship maps to target the right decision makers. Start small and take a hypothesis-driven approach Every company is different, and there is no one-size-fits-all approach to implementing and managing the relationship. The best way to manage is to test at a small scale and expand organically through the learnings. Develop a hypothesis for how the objectives can be accomplished and allow teams to test them out. By collecting data to measure success, teams can adjust course where needed. Iteratively testing and learning leads to an approach that works for the organization and can be scaled organically in the sales team. Find champions Champions are the people in the organization who spearhead change and advocate for digitalization of key account management. They empower others to share the vision and help teams focus on the goal. Focus on competitive advantages Finding ways to extend competitive advantages can involve white space mapping, identifying new opportunities with existing clients, or finding new clients for existing solutions. Having a unique digital relationship strategy gives a surgical and intentional approach for how sales teams identify key areas of communication. To build trust and relationships, sales teams can play on their strengths and highlight related features prominently to meet stakeholder needs. One of the most important factors when selecting a digital key account management tool is its ability to integrate with the company’s existing solution set – so that teams don’t feel like they are using a third-party product. If the tool is easy to learn and operate, minimal training is required for employees to understand its functionalities. When implemented effectively, a digital key account management tool can transform the way companies manage their large clients. It can help sales teams to better understand their customers’ organizational structure and the key decision-makers involved in the purchasing process. This understanding can lead to more effective sales strategies and ultimately, increased revenue. Companies that work with large clients need to invest in digital key account management tools to effectively manage their relationships. By leveraging these tools, companies can gain a deeper understanding of their customers’ needs, and develop more effective sales strategies that drive growth and reduce costs. The need for digital tools to manage customer relationships Organizations have completely overhauled their strategies over the last two years, especially when it comes to customer relationship management. Small and medium sized businesses that rely heavily on personal interactions with clients now use a digital-first approach to Key Account Management. To remain relevant with customers, solution providers have to create and implement a digital account and relationship strategy that could help them retain or even grow their key relationships in this new remote world. There are a few factors that sales teams have to consider: Aiming for a data-driven approach to relationship strategy and management. As consultants, the sales team helps clients define business problems, collect data, and use that data to inform decisions that produce positive outcomes for their organization. However, by turning that lens internally, organizations can come up with a suitable approach to manage opportunities, and improve their outcomes through managing accounts and relationships. Managing culture and people changes is important while shifting to a new approach. It requires proactive and sustained communication across a variety of stakeholder groups to influence broad behavior change across the company. To make it stick, sales teams should align incentives and the way they measure things to reflect the business outcomes they really care about as a business. Enabling teams with the right tools powers them to punch well above their weight. Even with the best approach and a workforce ready for change, lack of infrastructure and relevant tools to do the work can cause frustration,
It’s 2025! It’s time to go Digital now and adopt Digital Key Account Management!
The question ‘is it time to go digital with your KAM’ can be addressed from two perspectives – internal and external. Internal perspective: First is the internal perspective. At the organizational level, the question to ask yourself is whether it is the right time to take the plunge. In uncertain times, what is generally seen with customers is that the tacit knowledge of key accounts is retained by certain account managers. Unfortunately, in circumstances where those account managers get laid off or furloughed, the critical knowledge they possess is also lost. The account intelligence is ‘in their head’ and they take it with them. External Perspective: When you try to look at it from an external perspective, there is a lot more risk involved with large key accounts. Most large accounts are hedged on just one person or “champion” giving them their maximum revenue. In case that person leaves your accounts, the amount they were bringing into the organization is automatically at risk. In such a situation, it is important to give visibility to the organizations that relationships are important. Why should you adopt Digital Key Account Management? What are some of the benefits of adopting digital account planning solutions for your key accounts? How will it optimize the investments in your organization and build stronger relationships with your customers? How will it be different from the existing account management strategies that you have adopted for your key accounts? To answer these, it is essential to know how digital key account management can be a value-add in your organization. Centralize Account Intelligence It’s time to strengthen and centralize this account intelligence. The key to this is making account intelligence an asset within your organization. This enables the next person who is supposed to take over that particular key account to have more visibility. Increase Internal Collaboration: Considering the current work-from-home or hybrid environment that most organizations have adopted, collaboration is a must. Collaboration has also become much more challenging than before because of the sort of environment we live in. People often don’t have as much face time with each other as they did pre-pandemic. Thus, they need a common system or repository where they can come together and collaborate on key accounts. Increased efficiency Digital tools can help account managers automate day-to-day tasks and focus on more strategic tasks such as building relationships with key accounts and providing personalized solutions. By automating routine tasks, organizations can reduce the workload on account managers, enabling them to focus on higher-value activities. Personalized solutions Digital Key Account Management enables account managers to provide personalized solutions to key accounts by tailoring them to their specific needs based on predictive analytics and insights. By providing personalized solutions, account managers and sales leaders can build stronger relationships with key accounts, increasing customer loyalty and retention. Competitive advantage By adopting digital strategies, organizations can differentiate themselves from their competitors and meet the evolving needs of their customers. Organizations that fail to adopt digital strategies risk being left behind, as customers increasingly expect personalized and efficient solutions. Digital Key Account Management can help organizations stay ahead of the curve, ensuring they remain competitive in the long term. Improved analytics Digital Account Planning solutions provide organizations with improved analytics. This provides organizations with real-time data on key accounts, such as their engagement levels, preferences, and buying behavior. This data can be used to analyze trends, identify opportunities, and make data-driven decisions. Mapping the right stakeholders If we are unaware of the key stakeholders, decision-makers, or influencers within the target client’s organization, there is a possibility of losing the lead and the entire deal in the highly competitive B2B world. In order to ensure that the bargaining power of your sales and account management teams doesn’t fall short of expectations, stakeholder mapping is a must. More importantly, stakeholder mapping also ensures that customer needs are being prioritized. Knowing what key stakeholders in large accounts need both in the short-term and long-term ensures that your organization can satisfy them and have a strong relationship with them to build on. Thus, mapping the right stakeholders is important. Having visibility of white spaces Having visibility of the white spaces and your actions towards that is important to identify new opportunities and increase revenue within key accounts. By analyzing white space, or areas of potential growth and untapped opportunities within existing accounts, organizations can better understand their customers’ needs and preferences, and tailor their offerings accordingly. White space analysis also helps businesses to prioritize their resources and focus on high-potential opportunities, ultimately leading to greater profitability and customer satisfaction. Additionally, by regularly conducting white space analyses, businesses can stay ahead of the competition and remain agile in a constantly evolving market, ensuring that they continue to deliver value to their key accounts over time. It’s important because you will have a better understanding of your customers about how the movements in these organizations are going and how it impacts your business and your strategies. Choosing the right solution for going digital To maximize the benefits of your account planning strategies, it’s time to go digital. For this, picking out the right tool is vital. However, in the current digital environment we live in, there is an abundance of choice which makes choosing the right account planning a daunting task. Here are a few things to keep in mind when choosing the right solution for your key account management needs. Maximize Sales Tech & Martech ROI In a world where sales tech and marketing tech stacks already have an abundant presence in an organization, investing in another new tool can seem redundant. Hence, choosing a tool that can maximize existing sales and marketing tools your organization has invested in is important. It is important to note whether you are getting the ROI on the investments you have already made before making the next choice on your digital account planning tool. Winning the CFOs approval: How to Present RoI of a Key Account Management Software
Best Practices for Developing a Digital Key Account Management Strategy
In today’s sales landscape, implementing a successful Key Account Management (KAM) strategy can often mean the difference between success and failure. However, with the rise of digital technology, traditional KAM strategies may no longer be enough to meet the needs of the modern customer. This is where digital Key Account Management (DKAM) enters the scene. By allowing companies to leverage data and technology digital Key Account Management provides a more personalized and customer-centric approach to sales. In fact, according to a recent survey, 84% of sales leaders believe that digital Key Account Management is crucial to their organization’s success. Despite this, many sales leaders and sales enablement leaders have challenges with developing and implementing effective digital Key Account Management strategies that align with their company’s goals and objectives. Whitepaper: The Impact of Digital Key Account Management on Sales Enablement Here, you’ll discover the best practices for developing a digital Key Account Management strategy. One that will meet the specific needs of your customers and drive sales success. From identifying account management key performance metrics and setting clear objectives to tailoring your approach to each customer and measuring your results – you’ll find all you need to know to succeed in today’s digital business ecosystem. Key Components of Digital Key Account Management B2B companies today are increasingly adopting digital strategies to stay competitive. For sales leaders and sales enablement leaders developing a Key Account Management strategy is essential. This helps with building strong and lasting relationships with key customers but also adapting to the changing needs of their customers. However, successful implementation of digital Key Account Management requires a deep understanding of its key components and features. Here are some fundamental elements of digital Key Account Management, including how it builds upon traditional Key Account Management practices and the essential components of a successful digital Key Account Management strategy. Listen to The Shift: #1 Podcast on Digital Key Account Management Overview of Traditional Key Account Management and its Translation to the Digital World: Traditional Key Account Management involves building strong relationships with key customers to drive long-term growth and profitability. However, in the digital age, businesses must also leverage technology to improve customer experiences and foster deeper relationships. Digital Key Account Management involves using data analysis and personalized communication to provide these exact results. By intelligently using digital tools and platforms, businesses can gain a deeper understanding of their key accounts’ needs and preferences, and tailor their approach accordingly. Key Features of Successful Digital Key Account Management: Effective digital Key Account Management involves several key features, including: Customer-centric approach: In the B2B sector, customers are looking for personalized solutions that meet their unique needs. A digital Key Account Management strategy should prioritize a customer-centric approach that puts the customers’ needs at the forefront. Data analysis: One of the advantages of a digital approach to Key Account Management is the ability to collect and analyze data. By analyzing customer data and interactions, sales teams can identify trends and opportunities to improve customer engagement and retention. Personalized communication: Effective and clear communication is critical to building strong relationships with key accounts. A digital Key Account Management strategy should include personalized communication that directly addresses the customer’s needs and preferences. Customer feedback: Gathering feedback from key accounts is essential to understanding their needs and identifying opportunities for improvement. A digital approach allows for easy collection and analysis of customer feedback. It thus enables sales teams to quickly adapt and respond to customer needs. These key components must be part of every digital Key Account Management strategy. By incorporating these features, sales leaders and sales enablement leaders will be on the path to providing exceptional customer service, building better relationships with key accounts and enhancing business performance. Developing Your Digital Key Account Management Plan B2B clients today conduct active research online. In fact, over 60% of all B2B transactions start online. Also, close to 90% of B2B CMOs believe that customer experience will be more critical in the industry in the years ahead. These statistics highlight the importance of a well-planned and executed digital Key Account Management strategy. To stay in the race and outperform the competition, businesses must think creatively and incorporate innovative approaches into their plan. Learn More: 7 Key Takeaways for a Successful Key Account Management Transformation Journey Here are some key steps to consider when developing your digital Key Account Management plan: 1. Set clear objectives and goals for your digital strategy: It’s important to start by identifying the key objectives and goals of your digital strategy. What are you hoping to achieve with your key accounts? What specific outcomes do you want to see? Having clear goals in mind will help you focus your efforts and measure your progress. 2. Identify key performance metrics and KPIs to track progress: Once you’ve established your goals, it’s critical to identify the account management key performance metrics and KPIs that will help you track your progress. Metrics that could be included are revenue growth, lead conversion rates, and customer satisfaction. By tracking these metrics over time, you can identify what’s working and what’s not and make adjustments as needed. Learn More: Key MetricsTo Measure The Success Of Your Digital Key Account Management Program 3. Create a framework for your digital strategy that aligns with company goals and objectives: It’s important to ensure that your digital Key Account Management plan is aligned with your company’s broader goals and objectives. To do this you will need to create an Account Management framework that takes these goals and objectives into account. This could mean including elements like your company’s mission statement, core values and strategic objectives. By integrating these elements into your digital Key Account Management plan, you can ensure that your efforts are in line with your overall business strategy. These steps will help you develop a comprehensive and effective digital Key Account Management plan that drives business growth. It also helps you build long-lasting relationships with your most valuable customers. Implementing Your
Key Account Management (KAM) – Past, Present and Future
KAM Definition – Key Account Management is a strategic approach distinguishable from account management or key account selling and should be used to ensure the long-term development and retention of strategic customers. The acronym used by professionals in this industry is KAM. Past What the customer thinks he is buying, what he considers “value” is decisive – it determines what a business is, what it produces and whether it will prosper’ – Peter Drucker Origin of KAM The origin of KAM lies way back in the era of Peter Drucker. A learned man, he understood the concept of customer dynamics and forecasted the change during his time. It was then that organizations realized the concept of soft selling, and started focusing on relationship mapping with their customers. According to research, companies that focused on long-term relationships with customers generated more profits than the companies that focused on short-term customer goals. Hence maintaining long-term happy relationships with customers became a ritual with practices like contact management, behavior-based loyalty and reward programs, etc. Organizations began to develop separate teams of ‘Account Managers’ that were solely responsible for looking after and managing the company’s larger and more valuable Accounts. Special teams were even developed to manage ‘high potential’ Accounts that needed to be nurtured and developed over time for a potentially rewarding relationship. Pareto Principle As the markets evolved, customer – buyer relationships evolved. The Pareto Principle was a defining observation – 80% of revenues came from 20% of Accounts or Customers. Those Accounts were later referred to as ‘Key Accounts’. Organizations started focusing on resources primarily on Key Accounts. However, Strategic Account Management was still an underserved opportunity. The people responsible for managing Key Accounts were in reality ‘Key Account sellers’, managing opportunities rather than the relationship. Present It is only in the recent few years when companies have started realizing that when buyers and sellers share a collaborative, interdependent relation, productivity increases in the long term. Looking at the current market scenario, there seems to be a rise in overall KAM technology adoption and awareness across industries globally, but if we talk about the United States, the overall Google searches for KAM have remained constant over the past 5 years time. In the graph from Google Trends below, you can see the number of searches for Key Account Management in the United States over the period of the last 5 years. Well! A possible reason for the stagnancy could be a lack of perception about KAM as a dynamic or trendsetting function in the organization. Key Account Managers are a bit like unsung heroes, chipping away at complex relationships, away from the limelight. Needless to say, they have almost the same pressure as the regular Sales team to meet their quotas, but because successes are not so fast or visible, they tend not to be top of mind when it comes to the development of enablement or automation tools like CRM. Automation is generally some modified version of CRM because the focus tends to remain on the Key Account Managers individual relationship building skills. Methodologies for KAM Sales tend to be homemade, and core processes are not systematic or consistent across the organization. However, like every other field, technology is driving the world and KAM can’t escape for long. Key Accounts are getting increasingly complex, dynamic, global and networked. There is a genuine need to be able to automate and institutionalize key processes, reduce a person’s dependence, enable the people who drive KAM, manage data and analytics and of course track customer goals and opportunities in a more structured way. Associations like SAMA are trying to spread awareness globally about Strategic Account Management & emerging technologies through their efforts and events. We are looking forward to seeing a lot more KAM tech in Dreamforce’16 coming up this October. However, the traditional mindset that considers KAM an ‘art’ tends to question the scope of technology. We say it’s time for organizations to start asking- can technology transform the way we manage and grow our Key Accounts? It’s a question that we just can’t afford to ignore anymore. Future The future of KAM is about not just increasing productivity in the long term but about creating value for all shareholders in the ecosystem. With increasing complexity, it’s imperative to look for solutions that operate at the cross-section of the art and science of Key Account Management and help take execution to the next level. On the positive side, some industries are leading the charge for KAM, with Google trends showing a positive increase for KAM searches over past 12 years across Banking, Health and Business and Industrial areas. These are also the early adopters for KAM technology. The 90s was the year of CRM; 20s can be the year of KAM technology. What do you think? We’d love to hear your views on the past, present, and future Key Account Management, and especially on technology to transform Key account management. Write to me and we will share the best ones with all our readers on this blog next month!
