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Diagnostics and tools

Insights on tools and methods for selecting the right key customers

Professor Marco Sisti of SDA Bocconi University in Milan presented the matrix approach to key account selection at AKAM’s meeting in Paris. It’s important to consider carefully what criteria are applied to make up the axes of the matrix and whence the data to inform them is sourced, internally and externally. The matrix approach is…

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Webinar

3 drivers of KAM success

Simon Hazeldine explains his three keys to KAM success. You should be mindful that “You will be delegated to people you sound like. Be a business-person not a salesperson.” Which has to be based on having a customer business-focused strategic key account development plan, with core elements identified by Simon. Sound, practical guidance for key…

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Papers and articles

KAM-wrecking key customer picks

In this Bulletin article AKAM Chair Diana Woodburn lays bare all the ways that companies get this wrong – and why getting it right matters so much! Including poor performers in the key account portfolio can bring down the whole KAM initiative. But still there are suppliers with a feeble process for selection – or…

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Diagnostics and tools

Using the key account selection/categorisation matrix

In spite of its name – key account selection/categorisation matrix – the matrix has many more uses than choosing key accounts. It represents your organisation’s portfolio of key accounts, which should be managed, measured and assessed as a portfolio. The position of a customer in the matrix should be used to decide how much resource…

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Diagnostics and tools

Account attractiveness criteria identification and calculation and Relative business strength calculation

These two spreadsheets prefaced with instructions for use are designed to make the process of building the key account matrix easier for you. They make clear what data you need to collect and supply ready-made blank tables for inputting it. You really must give contributors scales to get some consistency across their ratings, so make…

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Papers and articles

Segmenting key accounts

Account segmentation is as fundamental to KAM as the differentiation that has to go with it. This report of the Programme Directors Forum complements the report on differentiation and digs into what segments are generally applied, and the well-established process for allocating customers to each. Segmentation is just the beginning: it leads to questions like…

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Member Resources

The essence of KAM: differentiation and key account selection

Differentiation is a cornerstone of KAM, yet some companies seem to believe they are operating KAM without giving key accounts anything significantly different from other customers. Suppliers standardise to lower costs, gain efficiencies and avoid making mistakes, but this isn’t enough for key accounts to spend their valuable time with you. This report of AKAM’s…

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Podcasts

When is a key account not a key account?

In this podcast, John Bailey (Hiab), Armelle Dupont (Vetropack) and Diana Woodburn (AKAM) talk about how and why key accounts are chosen, and why some major accounts don’t make the cut. Key strategic accounts should be selected for their potential and willingness to partner, allied with their strategic fit with the supplier. But suppliers need…

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Diagnostics and tools

Key Account Manager incentive and compensation schemes

Companies often make the mistake of applying the same compensation schemes to key account managers as they do to salespeople. Understandably, employees reckon that what they are incentivized for is what the organisation really wants from them. So if short term sales are incentivized, short term sales are the output – not KAM. In this…

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AKAM Workshops & Conferences

KAM – Procurement personal relationships and the danger of boundary spanner corruption

Corruption is a hard word for some not unusual situations in KAM. But Professor Stephan Henneberg applies it to violations of the employer’s norms and interests, which many will have observed in KAM relationships. You will probably recognise many of the situations in Stephan’s hair-raising collection of quotes. Defining the limits in commercial relationships is…

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