1 site learning: KAM- The management of the customer relationships that are most important to a company. Key accounts are those held by customers who produce most profit for a company or have the potential to do so, or those who are of strategic importance.
Development of these customer relations and customer retention is important to business success. The analysis is done on which accounts are key to a company at any one time, determining the needs of these particular customers, and implementing procedures to ensure that they receive premium customer service and to increase customer satisfaction.
2nd site learning: The article talks about KAM and its Values. This is mostly related with the 1st site learning but know with 3 main KAM VALUES. The 3 Values are based on benefits and sacrifices (the essence of value); creation and appropriation (the value processes); and the customer, the supplier, or the relationship (the parties of value).
- Type 1: The Exchange Value: its a long run self serving exercise to retain & develop important yet strategic relationship with its customers. It comprises value elements such as simplified and coordinated communication (single point of contact on supplier side); international integration of exchange activities; adjusted and customized core offering.
- Type 2: Proprietary supplier KAM value: It is seen as an activity aimed at internal efficiency and effectiveness of the supplier. It emphasis is on efficient processes that provide certain interaction results at reduced costs (i.e. improved sales productivity). For examples are the emphasis on aspects of concentrating sales teams; improving account team communication; improving dissemination of key customer information; focusing selling resources and processes.
- Type 3: Relational KAM value: While exchange value describes value that comes into existence because of the key account exchange relationship (i.e. because a supplier-created offering is transferred to a value-consuming customer), it does not capture any value that is created by the exchange relationship. In this instance, the relationship itself becomes the resource that creates value. This aspect of value, organized around cross-company teams, is generally but not linked to joint New Product Development activities or quality initiatives (ISO certification).
Using the analysis for strategy formulation. Most company are not having key account system because they are using other matrixes or systems that are relevant for their comapny to store certain datas. But I think its vital for all comapnies who are dealing with the customers or clients that are either loyal, existing or new- Key account matrix ya system can help the comapnies to maintain the data of having such clinets or customers through which the orgainzation gets profit and are able to satisfy and provide right attention to their clinets.
Doubts: How can we apply this system in companies and if we are storing data in it how it can be updated?
Would like to understand the 3 Main KAM VALUES once again with examples related to Bottomline projects if possible? or Live examples of certain companies??? (Concept is still not clear)
Doubts: How can we apply this system in companies and if we are storing data in it how it can be updated?
Would like to understand the 3 Main KAM VALUES once again with examples related to Bottomline projects if possible? or Live examples of certain companies??? (Concept is still not clear)
