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Strategic Key Account Management

2013 Page 1 How Economic and Technological Changes Have Made Key Account Management a Strategic ImperativeIn the 1970s, companies like Xerox and IBM started to address their important customers as Key Accounts . Since then, key Account Management has evolved in response to new technologies and massive changes in the global , Key Account Management : Builds Strategic relationships with major customers Drives alignment within the whole organization Is a central, pivotal point of activity Delivers value to customersHow KAM evolvedThe first generation key Account Management was based on geographical spread, vertical segmentation and sales data. Most of the key Account Management approach was opportunity driven and done through a lot of paperwork.

Sophistication: Consultative selling implies thorough understanding of large customers’ expectations to assist and train their staff and reduce their business risk, instead of just delivering a good product at a good price. Consolidation among distributors and the rise of global retail chains have concentrated buying power in the past few years.

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