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KEY TO SUCCESS Top tips to help you protect and grow key accounts by Chris White, Marketing & Business Development Consultant, EMC

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ost companies have a group of accounts that are considerably more important than others. They’re the ones that generate the lion’s share of revenue…and, hopefully, profit. They need to be given special attention, have their risks managed and opportunities optimized – a proper dose of TLC. This often means developing a Key Account Management programme. According to a Strategic Account Management Association (SAMA) survey, companies with well-developed KAM programmes have a 43% higher customer satisfaction score than those without. The research also showed that many KAM programmes are based around clients where the supplier’s share of wallet is as low as 10-25% - so there’s a lot to aim for.

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Also… • Generally speaking, 80% of future income is likely to come from just 20% of existing clients. • Selling is easier to key accounts. The probability of selling to an existing client is 60-70%, while the probability of selling to a new prospect is only 5-20%. • Using a key account strategy to reduce client churn by a mere 5% will increase profits by around 25%. • Typically a sale to a new client is eight times more costly than making the same sale to an existing client. With so much at stake, it’s not surprising that many companies are keen to, and do, implement KAM. However it is also true that many

programmes fail or are abandoned. In other cases, companies find they have to make big changes to get them to function properly. Here are 13 things to consider that might help you develop and implement a successful KAM programme. 1. Be clear about your objectives. Remember we are talking about key existing accounts here, not potential ones. This is about nurturing, protecting and growing major clients. Non-clients fit into a careful targeting programme – they are not key accounts. 2. What resources can you commit to the accounts and what levels of support will you see a return on? Scale your programme accordingly. Do you have a

Platinum Business Magazine Issue 9  
Platinum Business Magazine Issue 9  

The widest-read business publication in the South East. Covering International Trade, Legal Issues, Accountancy, Wealth Management, Business...