Tag: Glossary

65+ Essential Key Account Management Terms Explained: Key Account Management (KAM) Glossary

KAM Glossary (with 68 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. What is 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: 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 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. Account Mapping 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 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 Account Planning Software refers to technology solutions or tools designed to support the key account management process, typically featuring tools for account segmentation, account planning, account reviews, relationship mapping, and opportunity management. Account Planning Templates Account planning templates are structured, pre-defined blueprint documents used to manage strategic & key accounts. They include key details about the client, such as strategic goals, relationship maps, opportunities and challenges, action plans, and success metrics. They help ensure a consistent and focused approach to account management. 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. Account Segmentation 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 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 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. Cross-selling 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. Customer Advocacy The process of mobilizing key accounts to become advocates for a company by getting testimonials, case studies, and referrals. Customer Churn The rate at which customers stop doing business with a company over a given period of time. Customer Feedback Information and insights provided by customers about their experiences with a company’s products, services, and support. Customer Journey 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. Customer Retention The process of maintaining ongoing relationships with existing customers, with the goal of reducing churn and increasing lifetime value. Customer Segmentation 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. Customer Success A function within a company that is focused on ensuring customer satisfaction, retention, and long-term value. Detractors 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. Enterprise Deals Large, complex deals involving multiple decision-makers and stakeholders within a key account, often requiring a high degree of relationship-building and strategic planning. Executive Sponsorship 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. Influencer 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