Why is Key Account Management Important - Rain Group Research

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What is Key Account Management?
Key account management (KAM) is a strategy to build a partnership between a company and key clients. Want sustainable revenue? Then, you need to invest your time in building a key account management program. Tracking and nurturing key accounts can pay off—big time.

At this point, we all know that retaining customers is more cost-effective than acquiring new ones. More than that, a good experience with your company can bring in new referrals and those gushy testimonials you love to display on your website and social profiles (and heck, why not on your fridge!).

Focusing on key accounts can drive more revenue into your business and create lifetime bonds with customers. If you help them achieve their goals, there's a good chance they will stick with you for the long haul.

Milind Katti—the co-founder and COO of DemandFarm—looks at key accounts through the lens of the Pareto principle: 20 percent of your top customers will bring 80 percent of your revenue. And with the increase in tech to enable your KAM program, this is only getting better. As Milind says: “No level of automation can replace the intuition an experienced key account manager brings to the job. It can only enhance it.”

Why is Key Account Management Important?
Key account management can be a game-changer for company revenue—especially for startups and SMBs trying to cement their spot in an industry.

Research by Rain Group found that sales teams who use KAM are three times more likely to grow 20 percent (or more) revenue from key accounts, and 4.5 times more likely to improve customer satisfaction YoY.

Source: Rain Group

A lot of those wins are because KAM can:

Strengthen customer relationships. Key account planning is built on communication. Constantly talking to large accounts creates a feedback loop—learn what customers need, and build trust at the same time.