Key Account Management Reloaded

Key Account Management is dedicated to a few strategically very important customers of a company. The concept has been known in practice for more than 30 years, but is not optimally implemented in all companies. Some companies are only now starting to focus on the topic. How is this possible with such an established management concept? Many companies did not (yet) have to make an effort in the past. They were successful because they were able to leverage other core competencies for competitive advantages. These opportunities have disappeared in many industries. The type of customer management plays a significant role in many places or becomes a decisive competitive advantage. This is what KAM is about: 

Key Account Management involves the systematic analysis and management of currently and potentially strategically important customers in order to achieve a relative competitive advantage. It also includes the systematic development and maintenance of the necessary resources, competencies, and infrastructure. 

Certain topics require a professional further development of KAM. These include, for example, increasing concentration processes and the dynamic growth of certain customers that require more attention. This also includes the professionalization of procurement in the sense of modern Supply Management and the resulting increasing demands of customers. Lastly, customers often expect an internationally coordinated approach. With these developments, the following theses and recommendations for a future-oriented KAM can be formulated:

1. The obligation to professionalism in KAM: Together with my colleagues Prof. Dr. Christian Belz and Dr. Markus Müllner, we have developed the "St. Gallen Key Account Management Concept" and continuously optimized it in collaboration with practice. It structures the complex topic of KAM and helps companies to critically reflect on and optimize an existing KAM or set up a new KAM for a company. Companies should utilize this state of the art in KAM to reflect on and potentially optimize their own Key Account Management.
2. KAM is at the forefront of Customer Centricity: Customer Centricity has become a new trendy topic in management in our latitudes. This is surprising because the concept revitalizes the fundamental idea of marketing, namely customer orientation. Key Account Management is Customer Centricity in its purest form, where strategically important customers are treated individually. More customer orientation is not possible!
3. Dynamic methods in Key Account Analysis: Key Account plans are part of the standard toolkit of a professional KAM. Creating such a plan is often seen as a tedious duty for many Key Account Managers. The integration of canvas approaches for customer analysis and thus a better understanding of the Key Accounts brings a new dimension to many KAM teams. Especially when these are also used in creative sessions for new ideas. The Value Proposition Canvas, for example, provides very good services here.
4. Key Account Management must challenge the customer: For some time now, the sales world has been enthusiastic about the "Challenger Sales" approach. It is not only about understanding and fulfilling customer needs, but about challenging the customer and their business model. Only by demonstrably contributing to the success of their customers in their markets in KAM, are you on the right track.
5. Global Account Management (GAM) is on the rise: Most Key Accounts are internationally active and expect their suppliers to provide internationally coordinated services. However, Global Account Management is not suitable for all companies, but only for those whose customers also expect and justify such an elaborate service.

Conclusion: KAM is established and well-known. However, not all companies have yet achieved an optimum in KAM. This is what needs to be aimed for in today's competitive markets. And even then, it won't be boring. New management concepts, new customer expectations, or the international perspective in the form of GAM continue to challenge us and Key Account Management further.