Applying KAM to your specification strategy
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Key Account Management (KAM) is a collaborative sales strategy that focuses on building long-term relationships with key clients to achieve mutual business goals and create value. By understanding clients' needs and working together, KAM promotes cost savings and fosters customer loyalty, making it harder for competitors to penetrate the relationship. The approach is complex and should be carefully implemented with selected clients who have significant volume potential for the supplier's products.
Applying KAM to your specification strategy
- 1. www.cadvantage.co.uk @CompetitiveA 01252 378053 talk@cadvantage.co.uk Specification Selling – Key Account Management Evaluate Review ImplementIdentify
- 2. www.cadvantage.co.uk @CompetitiveA What is KAM? Key Account Management (KAM) is a professional sales approach which involves the supplier and client’s working together to gain understanding of each others business and achieve common goals.
- 3. www.cadvantage.co.uk @CompetitiveA What is KAM? Key Account Management (KAM) is a professional sales approach which involves the supplier and client’s working together to gain understanding of each others business and achieve common goals. KAM is a long term approach. It is goes beyond a specific sale. It is about taking a broad focus and creating value via long-term relationships.
- 4. www.cadvantage.co.uk @CompetitiveA What is KAM? Key Account Management (KAM) is a professional sales approach which involves the supplier and client’s working together to gain understanding of each others business and achieve common goals. KAM is a long term approach. It is goes beyond a specific sale. It is about taking a broad focus and creating value via long-term relationships. KAM allows for cost savings for both participants via efficiencies.
- 5. www.cadvantage.co.uk @CompetitiveA What is KAM? It allows you to deliver what your customer truly wants. KAM allows for cost savings for both participants via efficiencies. Key Account Management (KAM) is a professional sales approach which involves the supplier and client’s working together to gain understanding of each others business and achieve common goals. KAM is a long term approach. It is goes beyond a specific sale. It is about taking a broad focus and creating value via long-term relationships.
- 6. www.cadvantage.co.uk @CompetitiveA Why offer KAM? Key Account Management will help you to understand your client’s business, propose new ways of doing things and build stronger business relationships. Making it much harder for your competitors to sell to your customers. Cost savings are achieved by re-engineering processes, reducing inventory and avoiding unnecessary activity.
- 7. www.cadvantage.co.uk @CompetitiveA Why offer KAM? Greater customer loyaltyStronger relationships with your customers reduce the issue of price (because of the value you provide) Gain an advantage over your competitors Shared cost savings achieved through efficiencies Streamline business processes Lessons that can be applied across your customer base
- 8. www.cadvantage.co.uk @CompetitiveA Who should you offer KAM to? Because of its complexity KAM is expensive to implement and can only be applied to a select (key) number of clients.They need to be chosen carefully. Select your larger client’s with growth potential, those that you value and want to continue working with and propose that you work with them to take costs out of their business. The client’s organisation must be able to understand the process and have the desire to participate. They must also have the level of business, or potential, to make the cost of the exercise worthwhile.
- 9. www.cadvantage.co.uk @CompetitiveA Step One: Identify clients who have the potential to use large volumes of your product What to consider – key steps
- 10. www.cadvantage.co.uk @CompetitiveA Step One: Identify clients who have the potential to use large volumes of your product What to consider – key steps Build profiles of key contacts Seek to develop long term relationships Relationships = specifications Relationships = project feedback Relationships = Trusted Advisor Trusted Advisor = repeat business
- 11. www.cadvantage.co.uk @CompetitiveA What to consider – key steps Step One: Identify clients who have the potential to use large volumes of your product StepTwo: Learn more about your clients business and the environment they work in
- 12. www.cadvantage.co.uk @CompetitiveA What to consider – key steps • Target market sectors • Legislation • Influencers • Design team members Consider research to fill in the gaps in your knowledge. Step One: Identify clients who have the potential to use large volumes of your product StepTwo: Learn more about your clients business and the environment they work in
- 13. www.cadvantage.co.uk @CompetitiveA What to consider – key steps Step One: Identify clients who have the potential to use large volumes of your product StepTwo: Learn more about your clients business and the environment they work in StepThree; Understand how you can help take cost out
- 14. www.cadvantage.co.uk @CompetitiveA Step One: Identify clients who have the potential to use large volumes of your product What to consider – key steps StepTwo: Learn more about your clients business and the environment they work in StepThree; Understand how you can help take cost out • New supply arrangements • Offering them re-engineered or even new products • Suggest new ways that they can work using your product Think outside the box when developing strategies.
- 15. www.cadvantage.co.uk @CompetitiveA In summary It allows you to deliver what your customer truly wants. KAM allows for cost savings for both participants via efficiencies. KAM fosters greater customer loyalty.
- 16. www.cadvantage.co.uk @CompetitiveA Conclusion KAM allows you to truly understand your customer and build strong, lasting relationships with your key accounts. If you have any further questions on how to implement a KAM strategy please contact the expert team at Competitive Advantage. 01252 378053 We can help you:- Our team have extensive construction industry experience, meaning we are able to understand the complex marketplace, so in-turn can work with you to deliver sound business recommendations. With your input we complete research and conduct workshops to gain information that will inform your strategy.Then working with you we create a business strategy that encompasses your end goals and look at how to implement this in practical terms.
- 17. www.cadvantage.co.uk @CompetitiveA What we do Market research Specification strategy development Sales & marketing training Specific to the construction industry If you have a requirement for market research and training or would like help with your specification strategy development we would welcome the opportunity to discuss this with you. Contact us: talk@cadvantage.co.uk 01252 378053