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Key Account Management
Strategy
How to segment and serve non-key accounts?
| I have been
discussing key
account management strategy development. I have
already discussed how
to identify key accounts. In this part, I will
discuss how to segment your remaining customer base and
how to serve them.
Indeed, the other accounts need your attention too, despite the fact that they are not yet “key.” The simple process to manage these accounts is by allocating resources in line with their potential. As you will see
below, I am suggesting a new category – strategic accounts. Many of the big companies that can suck up a lot of resources but do not produce adequate returns fall into this category. These accounts have the potential to turn into a key account in the future but may require years of effort. They need to be managed differently than key accounts but cannot be ignored. By not treating big companies as “key,” but treating them as “strategic,” you are making sure that they get the attention that they deserve, but do not distract you from your real key accounts. |
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Many companies choose to employ a two-pronged strategy for their “low priority” accounts. They develop a plan to move the account to either “key” or “strategic” category in a given period of time. If they fail to do so, they simply dump them at the right time. This is a somewhat aggressive strategy, but often creates the most shareholder value. By choosing do business with only the most profitable customers, a company can realize the highest return on capital employed (ROCE). |
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| Recommended articles: Key
account management strategy development
How to partner with your customers
Major
elements of a key account management program for an MNC
Knowledge exchange with virtual customers
How to empower customers
How to build a customer facing organization
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Questions,
comments, feedback, and suggestions
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