Whats the difference between KAM, this seems to be the most popular question on all KAM forums. Personally I think a better question is what skills are required to achieve the business goals of your organisation? However the popularity of the question and the debate it generates has led me to produce a quick comparison guide .

1. The Difference between Key Account Management and
traditional sales
Quick Comparison Guide
Criteria Key Account Management Traditional Sales
Key Accounts  There is a significant difference in the  Often all accounts are of a
value to the business (taking into similar sales potential size
account both current value and which makes it difficult to
potential value) between top accounts chose key accounts
(key accounts) and others. E.g. 10  Product lead
accounts maybe responsible for 60 % of
overall sales.
 Hence investing significant time and
money to these accounts leads to
significant returns
 Account lead
Segmentation  Done using 4 box matrix based on  Normally done using the
relevant parameters e.g. market share, Paretos rule i.e. sales rather
growth, potential etc. than potential
 Accounts segmented into Key Accounts,  Therefore segmentation often
Key Development Accounts, occurs around target
Maintenance Accounts and None Key accounts based on sales and
Accounts access
Sales & Marketing  Different sales and marketing  Generally a one size fits all
strategies/materials are implemented approach
based on the Key account segment.  Account management and
 Account management and plans are plans are usually around
focussed on the key decisions that need actions that need to be
to be made in order to achieve the achieved rather specifically
overall account plans around key decisions and
 Decision making unit for key decisions is decision makers
the focus of key interactions. Hence call  Coverage and frequency of
plan is based on the people who will account customers is often
affect the decision the driving input
Quick Comparison Guide 1 Leading the field in Key Account Management

2. Criteria Key Account Management Traditional Sales
Relationship  Strategic intent of buyer and seller are  Often transactional.
Management more closely aligned.  Strategic intent of buyer
 At the very least the strategic intent of rarely completely understood
the buyer are fully understood or a focus of the sales
interactions
Key Account Teams  Key account manager coordinates an  Sales person is main
internal team of appropriate people to interface with all customers
deliver the objectives for the key and occasional brings
accounts. additional internal resource to
 The appropriate member of the KAM meetings with customers
team deals with the appropriate
customer depending on the decision
that needs to be achieved.
Return on Investment  Time and budget spent in key account Budget spent is generally the only
team considered investment considered.
 Also considered is the cost of servicing
the account in terms of bonus stock etc
Success Normally measured by growth in profitability Normally measured by increase in
of working key accounts i.e. increase in ROI top line sales
over time
Communication  All key people in the company know  Normally only first line
who the key accounts are and prioritise manager is aware of the
their work around this i.e. sales, details of target accounts.
marketing, HR, finance  Overall business is less
 Regular updates and reports are aware of the target accounts
circulated with regard to the key
accounts
Business Process  Integrated with all departments working  Business process often
towards fulfilling the objectives of the based on internal factors
key accounts and the strategy of the without taking into account
business. customer or how it impacts
 CRM aids the key account management people in the field
team deliver on their objectives  CRM helps management
monitor sales teams
For more info contact Hands Associates LTD
E : enquiries@handsassociates.com
T : 0161 246 6017
W : www.handsassociates.com
Quick Comparison Guide 2 Leading the field in Key Account Management