KAM Strategy: Analyzing Your Key Account Portfolio
Strategies To Strengthen Your Key Account Relationships
Analyze Your Top 10 Customer Relationships
Why not use the 3 categories of supplier-customer relationship to analyse your Top 10 Accounts? It is similar to the approach that an investor would adopt to analyzing a portfolio of investments, or a realtor a portfolio of properties.
To show you how let’s examine the results of an analysis completed by an account manager (shown as an alias for confidentiality reasons) in a large life sciences company recently.
The graph shows a KAM relationship portfolio analysis of the Account Manager’s Top 10 Customers. The names of each customer are positioned on the graph according to whether the relationship is that of ‘standard supplier’, ‘preferred supplier’ or ‘strategic supplier’.
As you will see from the diagram there are arrows beside the name of each customer. These are used to indicate the direction in which the relationship was heading. In this way the account manager was forecasting where he, or she felt the relationship would be in 12 or 24 months relative to today. For some, the arrows show that the relationship is strengthening (right arrow), for others there is pressure on price and on the relationship (left arrow).
Mapping Your Customer Relationships
With reference to the above example please complete the same analysis of your own customers. To do so position your Top 10 Customers/Accounts on the blank version of the ‘KAM Relationship Matrix’ that you can download here.
When you have completed the diagram you can go to the next page and you will find some questions to help you analyze what your KAM Relationship Matrix is telling you.
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