Key Account Management Workshop Training Program | Best Sales Training in Asia | The Essential Knowl
The knowledge and skills (“competencies”) required by a key account manager fall into three categories. First, there is the essential knowledge and skill set required for all key account managers to carry out a basic KAM role. Second, there are advanced KAM competencies that a key account manager needs in order to manage more complex types of key account relationship. Third, there are competencies that are important for global account managers.
Core KAM competencies
The core competencies of the key account manager are those competencies that the key account manager needs to manage both exploratory and basic type relationships with a key account. These are: product knowledge; knowledge of the customer; knowledge of the customer’s industry; ability to inspire trust; project management; interpersonal skills; and negotiating and selling skills.
The core competencies needed by a key account manager:-
Product knowledge
Knowledge of customer
Knowledge of customer industry
Ability to inspire trust
Project Management
Interpersonal skills
Selling and negotiating skills
Product knowledge: Key customers expect that the key account manager appointed by their supplier will have an in-depth knowledge of the sup- plier’s products.
Knowledge of the customer: As well as extensive knowledge of the supplier’s products or services, the key account manager should be able to identify how those products or services fulfil a need for that customer. This requires the key account manager to understand the customer and the customer’s industry in depth.
Inspire trust: In addition to the knowledge and application requirements, it is very important for key account managers to establish their own – and their firm’s – integrity and to demonstrate that they can be trusted. Key customers overwhelmingly declare trust and integrity to be the most important factors in their selection of suppliers. In early stages of the relationship, establishing trust can be difficult as there may be very few or no transactions to back up the claims made by the key account manager. Other evidence, such as case studies or the endorsements of other customers, guarantees, market research, etc. may be helpful to establish trust. The key account manager must also think carefully about what he/she is promising; these promises must be credible. Further, the key account manager’s behaviour and general demeanor should underline the trust and integrity message.
Project management: As part of the “delivering what we promised” issue, key account managers need to develop project management skills which help them to ensure that undertakings given to the customer are actually met. The role of the key account manager is to ensure that things get done and that what is promised is delivered. Like the sales role, the key account manager works on developing the customer value proposition but, unlike most sales roles, he/she is also instrumental in ensuring delivery to the customer. Thus, project management skills are important. These include problem analysis and solving, planning, resource allocation, and change management skills.
Interpersonal skills: Research shows that customers do more business with people that they like, so interpersonal skills are important. World-class key account managers establish rapport, demonstrate empathy, listen well, and are likeable people. They tend to be slightly extraverted and are “people orientated” because it’s easier to like someone who likes you.
Selling and Negotiating: Even when the relationship is well developed, there is still a need for selling skills. This is even more the case with basic (bow-tie) relationships. Basic relationships tend to have transactional characteristics, so the key account manager needs to have essential sales skills (such as solution selling, going for the close, presentation skills, etc.). Moreover, there are often frictions in KAM relationships that require the key account manager to exercise negotiation skills. In fact, the very close- ness of the relationship means that the customer is more exposed to the supplier and, therefore, is more likely to notice failures of performance and communication. In addition, the key account manager has an important internal role as the customer’s advocate; he/she often has to negotiate with other departments in the supplier firm to ensure that the appropriate levels of service are delivered to the customer.
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