Key Account Management System
The key account management model is the system of selling into organisations. An organisation has several people who are involved in the buying process. These people will select, consider and decide on what item or service needs to bought.
The job of the key account manager (KAM), is to manage this buying process and the people involved. The KAM is to shape their buying decisions to favour the KAM’s company and offer. This is the key account management model.
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Key Accounts and Account Mangement
Key Accounts Model
A key account is an important account for your sales results. There may be around two to fifty key accounts, depending on industry, market segments, sales territory, geography, relationships and market sizes.
These key accounts are critical to your company’s business results. Using the Pareto Principle (80/20 rule), these key accounts should be contributing to 80% of your sales and margins.
Accounts Model
An account is the list of companies assigned to a sales person to go get their sales. This is the sales territory for the Account Manager (AM). The AM will contact this list to find opportunities and get in the sales from these accounts.
In this list, there could be a selection of Accounts that deliver a significant sales number. This subset of the account list, can be key accounts for an account manager (AM). But not necessarily a Key Account for the company as a whole.
Pharma and Medical Accounts Model
Pharma, medical, pharmacies are accounts in the healthcare sector. These can include group purchasing organizations (GPO), dealers and importers of record for distribution in the targeted country or geography.
Healthcare Key Account Examples
Hospital Sg Buloh, HKL, QEH, HPP, and HSAJB are key accounts for a pharma or medical sales company, because of their number of beds and range of specialities. There is the possibility of managing these accounts for fast movements and high inventory turns.
Central purchasing groups such as KKM, KPJ, Guardian Pharmacy, GPOs, importers and distributors could be key accounts depending on how you structure your tender bids and contracts for profitability and volumes.
University hospitals such as UMMC and HUSM, could be key accounts, depending on how you manage it, to shape and influence the market to prescribe and use your branded products over the long term.
Healthcare Accounts Examples
Hospital Sg. Petani, Mentakab, Muar, Kem Terendak, Taiping and many other smaller bedder hospitals, are accounts from which the sales rep will get smaller sales numbers due to the bed sizes and smaller range of specialities.
Many of these types of hospitals, panel clinic groups and pharmacies will have spend that are a fraction of the key accounts. The sales rep will need a list of these accounts to fill their monthly run rate sales quota.
Projects Sales Accounts Model
Technology and any systems integration solutions are project sales. These can cover from network infrastructure nationwide, property development, custom software development, outsourced contract manufacturing (OEM) to digital agriculture and townships.
The method of selling into these types of accounts are ecosystem based market entry. The KAM needs to know where, when and how to enter, acquire and defend their positions in these accounts.
Project Key Accounts Examples
Telcos like TM, DigiCelcom and Maxis, are nationwide telco infrastructure creators and providers. With these big three, suppliers have limited opportunities to enter due to propriety technologies in the accounts’ infrastructure.
And the compulsory corporate governance processes for tender bids and purchases, that must be complied by the board, employees and suppliers.
This is the same across the board for large accounts, whether in banking, manufacturing, transportation, plantations, government or construction.
The key account manager (KAM) has to assess the opportunities available and decide how to enter these accounts. This level of KAM activities, will depend again on the targeted spend and share of wallet in that ecosystem.
Project Accounts Examples
The small and medium enterprises (SME) business sector are major suppliers to each other and into large accounts. These SMEs have a simpler organisation structure and decision making process.
The key account manager (KAM) will have a very wide list of accounts to sell to. With a faster speed to sales results. The KAM will need to balance the opportunities and risks in supplying to this segment.
And create their own list of key accounts that can contribute to 80% of their sales and margin targets.
Key Account Manager Skills
For the key account manager KAM to manage the buying process, they need to know what internal and external procedures, and legal matters are involved.
And who in the organisation will be involved. It will be different between industries, companies, cultures and purchase value (spend).
The Kognifi Key Account Management Training Course is a strategic sales and marketing training course for key account managers.
Key Account Management Model Competency
To do this KAM job effectively, the KAM needs to use account based marketing methods and interpersonal selling skills techniques. The Kognifi key account management training course and trusted sales advisor training course, is part of the Kognifi key account management training program.
The KAM’s capabilities is a mix of selling skills and marketing planning. The KAM’s competency is using these capabilities to get results is the key success factor in selling into organisations and key accounts.
Key Account Management Certification
To know this system and be capable to see and manage the various spend processes, you need to undergo a professional key account management training course.
This KAM certification program from Kognifi is unique in building KAM skills specific for the Malaysian sales environment.
The lead trainer and KAM course designer, has over 30 years of pharma, medical and technology key account management experience.
