Functional Key Account Manager. Or how to find a key account manager. Basic mistakes when working with key clients
Or how to find a manager to work with key clients
At first glance, there is not that much difference between a sales manager and a key account manager. Well, except that the financial output from the latter is much more significant, and, therefore, the level of responsibility is higher. However, as practice shows, not every sales person grows into a smart key account manager - it turns out that this is not only a matter of sales experience and a heightened sense of duty. What exactly - let's figure it out!
KAM should be engaged not so much in searching for new clients - even ordinary sales investigators will do this - but in retaining and maintaining existing partnerships, motivating large customers to continue cooperation with the company.
The key account manager is the eminence grise of the sales department - his work is often invisible to his colleagues, but he is the liaison between VIP customers and his company. He tries to satisfy all the client’s needs, provides consulting, helping to choose the best option for the client’s business.
KAM's efforts are not selfish, they are aimed at ensuring that this valuable partner is not intercepted by competitors, because often the profit from cooperation with such a client amounts to 10-20% of the total income of his home company - by the way, it is precisely such customers that are considered key. In other words, the account manager must do everything for the happiness of his client, but with the intention that he will work with the company for as long as possible and leave the best recommendations about it.
If the average sales manager is fed by his feet, then KAM, for the most part, is fed by his head. His work involves large-scale brain activity, including analysis of not only “his” market segment and the behavior of competitors, but also research into the business sphere of clients, understanding their requirements and prospects for the development of the sales market. He must predict the customer's behavior many steps ahead. Unlike a regular salesperson, who is faced with the task of selling as much as possible, the account manager is not chasing the quantity, but the quality of transactions: he turns a large client from a “one-time” customer into a long-term partner, and such processing can take quite a long time. At the same time, the key account manager must be well versed not only in the product with which he directly works, but also in other services and products of his company, in order to offer them to his client at the slightest opportunity and thereby expand the package of cooperation.
It may seem that a good key account manager is expensive, simply prohibitive. Well, that's the way it is - but that's if we're talking about about a ready-made specialist with extensive experience, and sometimes with his own base regular customers. In fact, there are differences between each and every one, and you can almost always find an option that suits your pocket. Some companies cannot afford an expensive specialist with an impressive length of service. In this case, you can choose an ordinary salesperson, but with good experience, negotiation skills, and a presentable appearance. In the language of gamers, these are first-level key accounts, but they can easily be “upgraded” to pros - of course, if the employer has the time and opportunity to provide training to staff. Second-level CAMs (with up to 2 years of experience) are already more expensive: according to recruiting agencies, in St. Petersburg the salary of such a specialist can reach up to 60 thousand rubles. But this type of applicant already has basic competencies, such as, for example, the development of individual commercial offers for a specific client. Well, the third level consists of ready-made professionals with many years of experience. You can try and find aces who are trained to work precisely in the business environment in which the employer operates - an ideal option! Of course, such a KAM will ask for at least twice as much for its services as a second-level manager. But the demand from him is many times higher: the recruiter will demand from such a candidate not so much the ability to present himself, the presence of sales skills and competencies (this goes without saying), but rather concrete evidence of mastery in numbers - the number of long-term clients, the number of repeat transactions, certificates sales growth, etc. The KAM search itself highest category requires great professionalism from the personnel officer and considerable patience from the employer, since usually such aces already have a stable job and do not ask for interviews themselves. Sometimes an employer should slightly adjust his requests and expand the search area by covering related industry markets. You don’t need to focus only on the business segment in which your company operates - you can look at KAMs working with a completely different product, but, for example, with a similar type of audience. It is much easier for key account managers to adapt to new products than to a new type of clientele - this must be kept in mind when drawing up a portrait of an account manager.
In addition, when describing the characteristics of the desired candidate, the employer must take into account how the sales system itself is structured in his company. Will his elite sales team handle only large clients, or will he have to mix key deals with smaller projects? Will KAM cope with all the tasks alone, or does he need a whole team of line managers to help him? In the latter case, the VIP manager, with all his other advantages, must be a good manager, capable of supervising the work of subordinates, developing a strategy for the behavior of the entire team, taking into account the company’s primary goals. All these nuances need to be thought through in advance, even before drawing up an application. recruitment agency. Thanks to this preparatory analysis, drawing up a portrait of a candidate for KAMA will not be difficult. To help, see the list of skills and requirements for the position below. Of course, all points are subject to adjustment, depending on the needs of the company, the scope of its activities and its established sales policy.
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Responsibilitieskey account manager |
Requirements for candidates |
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Support and management of the company's key clients |
Experience in sales or existing skills in working with VIP clients (upon employer requests) |
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Motivating the client to enter into long-term cooperation |
Assertiveness with a developed sense of tact; The ability to delve into, analyze, and anticipate customer needs; Ability to handle objections |
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Preventing problems with clients and promptly resolving complex situations |
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Formation of commercial offers individually for each client |
Analytical thinking; Skill to work in team; Understanding of sales techniques and basic business laws; Ability to conduct or organize marketing research to analyze both the activities of clients and the activities of competitors |
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Participation in development pricing policy, systems of discounts and special conditions for partners |
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Researching a specific business area and identifying potential long-term partners |
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Conducting product presentations, meetings, negotiations |
Knowledge of a foreign language (if necessary); Skills business communication, knowledge of the psychology of business communications; Presentable appearance
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Conducting a transaction from the presentation of products to its sales, monitoring the fulfillment of all terms of the contract, including the timing of the provision of goods/services, payment issues, etc. |
Knowledge of document flow: package formation contract documents for the client, as well as reporting on the work done
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The key account manager is the “face” of the company; the reputation of your company, and therefore the growth of profits, largely depends on his work. Identifying the real managerial elite in a labor market that is now simply overcrowded with salespeople is not so easy. You will have to come to terms with the fact that a VIP manager is not a specialist whose search should be saved. As you know, sometimes it is better to sacrifice a little in order to win big later. Representatives of the recruitment agency in St. Petersburg, ARES LLC, will help you determine the characteristics of an ideal account manager for your company and will make every effort to ensure that he ends up on your staff.
In the “our clients” section on our website you can familiarize yourself with some letters of recommendation our customers who were satisfied with our work in searching for KAM (“Neocom Software”, “Kistler Rus”).
The abbreviation KAM comes from the English Key Account Manager (= key account manager). Often, throughout the territory, the functions of KAM can be carried out by itself Regional Manager; if the territory is large, then the regional manager may have more than one KAM subordinate to him.
- I.Key competencies of a key account manager
As with medical representatives, core competencies are directly related to the functionality that KAM has to perform. By the way, the functionality of KAM is significantly less diversified, but is complicated by the specifics of the individuals with whom KAM will have to work. Therefore, among the competencies so necessary for a good KAM, personal characteristics. Many of them cannot be taught in adulthood. This means careful selection of employees for this position.
Table Key Account Manager Profile
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Global tasks of KAM |
Functional (= detailing the activity within the task) |
Required competencies to perform tasks |
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Establishing close relationships with VIPs and KOLs and maintaining their loyalty to the drugs and the company |
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Lobbying the interests of the company in tenders, when drawing up preferential lists and other situations beneficial to the company |
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It must be admitted that it is not easy to find a good KAM, since he does not stay long on the free personnel market. If there is a shortage, it makes sense to take a closer look at the employees of your own company. There are often cases when yesterday’s medical representative becomes an excellent CAM. Interestingly, such a medical representative will likely have a significant disadvantage for being a representative. He must fulfill the visit standards extremely poorly, may engage in writing reports and in every possible way neglect the process and typical work. But with all this, it will give excellent results on its territory, achieving it in its own ways. If you encounter such a phenomenon in your department, do not rush to scold such an employee and stereotype him. Think about it: is his competence suitable for the position of KAM?
Marina R., an employee of one of the well-known pharmaceutical companies, was a medical representative of the city of Rostov-on-Don. Her immediate manager, a very pedantic and attentive person to the rules, was extremely dissatisfied with her. The reporting was done very poorly, information about visits was clearly filled out by simple copying, sometimes even dates and addresses were forgotten to change. Despite the fact that the working day began at 9, at 11 she was usually still asleep, and the manager had to literally wake her up. The question of her dismissal arose more than once, but the indicators for her territory were excellent and the decision was postponed. After changing the regional manager new manager I personally studied the work of my medical representatives, and finally made a decision on this employee. Instead of dismissal, she was offered the position of KAM. The audit results showed that all the VIPs and KOLs of the city knew Marina very well and considered her an excellent employee. It was thanks to Marina that the company regularly won large tenders in the territory and had a good number of loyal doctors in large commercial centers. Her personality traits were not conducive to regular work involving pedantic visits to doctors, although she tried very hard. But she was excellent at assessing a situation and establishing and developing personal relationships with people who made key decisions.
- II.Specifics of managing a key account manager
Working with key clients involves a high level of responsibility, as the consequences serious mistakes are very noticeable for the company and are always accompanied by a loss of money and market share in the region. And since this is work, first of all, with people, and people with power, status, who control money and other resources, such work, by definition, requires an individual approach. The two designated conditions - risk zone and individual approach - inform us of the requirements for KAM. This should be an employee who can quickly move to a development level of at least D3-D4, and there should be a minimum number of templates in his work.
Each new VIP or KOL is a separate yet unknown project, for which each of us is at level D1. And this involves joint detailed setting of goals with KAM before the start of the project, joint detailed discussion of the plan for its implementation and step-by-step monitoring of progress.
However, as the relationship with the VIP or KOL builds, be prepared to change your management style and delegate more to KAM. Agree with him on tasks and goals for VIP and KOL, determine the budget and its purpose, but learn to trust a successful employee.
It is completely unacceptable to introduce visit standards for KAM. Firstly, VIP or KOL clients are not going to obey any regulations; they have their own very busy work schedule. And their readiness for the meeting directly depends on the significance of this meeting for them personally. This significance cannot always be normalized. Secondly, often a number of issues are resolved not during visits, but during informal meetings. And the more important the topic, the more informal the conditions in which it is discussed. It is appropriate here to define the boundaries of interaction, but not to introduce templates.
I foresee a question that I often hear: “What if KAM doesn’t do his job - he doesn’t know his VIPs, much less they know him. All that remains is to force and introduce standards for visits - let him go like everyone else.” My dear regional manager! If KAM does not want or cannot do his job, you need to talk to him and say goodbye. Let him go in medical representatives and “walks like everyone else.” And to equalize functions while maintaining job titles is, at a minimum, economically inexpedient. After all, instead of an existing but non-functioning KAM, you will have to build acquaintances. No no! You will not be able to tell your management that KAM is to blame. Remember, an ineffective subordinate is yours error. You are responsible for your department and its results. If you have an unsuitable resource, you need to replace it with a suitable one. Everything else is an excuse for an as yet inexperienced manager.
With the development of retail (and not only), increasing competition among manufacturers and expanding markets, new professions are emerging that are necessary for successful business development. In the last decade, key account managers have emerged from sales managers into a separate category - key account managers.
By the way, interaction with customers is the most important part of a company’s work, regardless of its field of activity, be it retail, manufacturing or services. This form of interaction is present wherever there are sales and profits from sales.
Features of working as a Key Account Manager
On the one hand, key account managers no longer have to spend most of their working time searching for new clients, cold calling, or working with large databases.
On the other hand, this is the most critical part of the sales department’s work, since retaining existing customers often takes much more effort. Especially when it comes to key clients, work with whom provides a significant part of the company’s turnover.
In order for a key client to remain satisfied with the company's work, KAM must not just be the face of the company. He must have a good understanding of the clients’ needs, remember all the necessary numbers, and sometimes give hints and reminders if the interests of the business require it.
Moreover, we note that the interests of the client come first. KAM is a universal employee, because in addition to sales techniques, he must know logistics, marketing, and the basics of management. Even knowledge of the basics of accounting will not be superfluous.
Sometimes the Key Account Manager has to be a guide for the team: look for new paths along which the business will go further.
KAM team
Of course, KAM can work independently only with a small volume. As turnover grows, a team certainly appears - first of all, an assistant, a specialist in working with key clients.
His functions are determined by his manager, but mainly they are the implementation of technical aspects of the work - preparing lists, placing an order, monitoring its implementation.
More often this is communication with counterparties on the order of a key client, practical support process.
The key client himself is tied directly to the manager in communication.
In more complex cases, representatives of various departments, from accounting to production, are united into one team, under the leadership of KAM.
Where do Key Account Managers come from?
Unfortunately, the structure of education most often lags behind the development of the market and production. Therefore, key account managers are not trained anywhere.
In this case best option— to develop such a specialist within the company environment. Most often, this work is approached through the classic chain - merchandiser - sales representative - supervisor - sales manager - KAM.
What is achieved in this way? First of all, a thorough understanding of all processes in the company from the inside. Thus, a good KAM always knows at what stage and what of a well-thought-out logistics plan may not work. And in which area should the work be monitored especially carefully?
In addition, it gives knowledge of the company's product at a level at which it is difficult to be stymied by an unexpected question.
How to separate KAM from the team?
How can you tell if a sales manager will be good at working with key accounts?
Unfortunately, this cannot be determined simply by sales figures. As well as the desire of the specialist himself.
What qualities should a future KAM have?
First of all, he must “burn” - experience an irresistible desire to develop and grow in his skills and knowledge. He is always ready to undergo additional training - if the interests of the business require it.
Of course, you must have sales skills and negotiation techniques, and must understand the financial processes in the company.
Have a good understanding of the market and competition. Moreover, understand this not only from the company’s point of view, but also from the client’s point of view. After all, his services should help the key client promote his company in the stormy sea of the market, periodically working with a sail, sometimes with oars.
Be ready to work and drive. Of course, such a person must be a leader. After all, the success of the team’s work will depend on him.
Well, and analytical thinking, the ability to anticipate possible difficulties and be prepared to solve them. This is necessary, because sometimes one puncture, one missed delivery can lead to the loss of a client or the need to compensate for his losses. The ability to analyze a product, its relevance and competitiveness is also simply necessary when working with key clients, because it is better to anticipate and solve problems before they become major ones.
If the main person in the company is the sales manager, then who is KAM?
The same sales manager, just at a higher level. Let's not forget that the responsibility of such a specialist will be slightly higher than that of an ordinary manager or specialist.
In complex issues, it is KAM who is responsible for the work of the entire team, its loyalty and coherence. Such a specialist must bear the load not only more high pay labor, but also greater responsibility for the result. After all, the next level in your career is already a director.
What do the professionals think?
We asked for comment on the pros and cons of working as a Key Account Manager and what you need to know to take this position.
Ivan Grigoriev(KAM in R-profit):
Pros of the job: I don’t spend much time in the office. I have meetings almost every day: at clients’ homes, in restaurants, even in fitness centers and bathhouses. Sometimes golf, tennis, once - hunting. I travel a lot for work at corporate expense.
It's great that all the paperwork can be left to the assistants.
Plus, the bosses don’t teach you “how to work” - the main thing is to produce results. And if this is also a very good result, then the additional payment in the form of a percentage of transactions is significantly higher than the salary.
What should I do to get a position - in the case of my company - be able to do things, get meetings, convince more clients for larger amounts of investment. To do this you need to be able to communicate, find a common language with different people, be able to present the product in such a way that it would be of interest to this particular client with whom you are communicating in this moment- everyone has their own motivations and arguments.
A key account manager is responsible for maintaining relationships with the most important partners for the company. Therefore, he must remember that he cannot look at clients only as a source of income; such an attitude is always intuitive and repulsive. It is important to be able to maintain a balance between your own interests and the benefit of your partner.
general description
In Russia, there has been a tradition to classify people involved in the field of communication with people as managers. The word “manager” has the meaning of “managing others,” and a key account manager usually has no subordinates and is responsible only for his own work. It would be more accurate to call such a person simply a “specialist.”
However, we will not delve into terminology. The profession Key Account Manager (KAM), or key account manager, is found in trading companies and various types of agencies, such as advertising. Interaction with clients is the most important part of any business, so the company’s specialization is not fundamental here; it only adjusts the work of the specialist and clarifies the tasks facing him.
Customer interaction is the most important part of any business.
KAM maintains relationships with the most important clients for the company, forms commercial proposals, conducts initial presentations and subsequent meetings, and concludes contracts on behalf of the company. He takes part in the development of pricing policy, decides on discounts or special conditions for partners, and also controls the process and timing of the provision of goods or services, and compliance with agreements. A key account manager must be able to predict possible difficulties in work and promptly solve problems.
Education
Many employers agree that a higher education is necessary for a key account manager, but what kind of education is not so important. Ideally, KAM needs knowledge in the field of marketing and human psychology. Consequently, psychological education can become the main one, and marketing courses can be an additional one. Having a degree in marketing is not so important, since the main job of a key account manager is contact with real people. Employers do not give preference to a nice line in the “Education” column, but to the similar work experience of the applicant for this position.
Related careers
Former marketers or advertising and PR specialists come to this profession - as a rule, they are attracted by the opportunity to significantly increase their level of income. People often apply for the KAM position former managers sales or advertising managers who have developed sufficient skills and a client base to independently oversee important projects and manage the company’s main clients. Long-term and stable relationships with various organizations always useful, regardless of what the potential employer does. All companies are sales-oriented in one way or another, so the areas of interest of many of them often overlap.
Functional responsibilities
KAM's work begins with market research and identifying potential strategic clients - those with whom cooperation should become one of the main sources of income for the company. He then contacts them. Having established initial contact, the key account manager, with the help of specialists from other departments, creates a commercial proposal in which potential client the benefits of cooperation must be demonstrated. It is formed very carefully, based on knowledge about the market, the client and his needs. The better the analysis of a potential partner, the greater the likelihood of interest in a specific offer. Then the next step will be a personal meeting.
Svetlana N. has been working with clients for several years, now in advertising agency. Before that, she was an advertising manager and sales manager. According to her, the first personal meeting is a very important element in building relationships. After all, success further cooperation will depend on how much people were able to find a common language with each other. Svetlana says that at a meeting a person first of all evaluates himself, and only then his partner, so communication takes place not only on a verbal, but also on a non-verbal, energetic level.
After the parties agree to begin work, the details of cooperation are discussed separately, then an agreement is signed and the process of providing the product or service begins.
KAM ensures that both parties comply with mutual obligations so that there are no overlaps.
A key account manager must not only constantly search for and attract new clients, but also keep existing ones under review, monitor changes in their business and, based on this, adjust interaction with them. He also needs to painstakingly maintain a client base, collect all available information about the company, right down to client reviews and his own observations.
Skills and qualities
The main tools used in the work of KAM are the ability to understand the psychology of people, business communication skills and knowledge of the product (goods or services) offered by the company represented by the manager. In addition, the ability to “program” oneself for good luck is very important in the work of such specialists. “You need to be able to create the right message for the client. “By selling anything to anyone, you can make a deal only once - it won’t work the second time,” Svetlana shares her thoughts.
A good key account manager must have business acumen, know where to make money, but at the same time be tactful, have developed intuition and understand when to stop, stop putting pressure on the client, so as not to go too far. Otherwise, the deal may fall through.
A good key account manager must have business acumen
KAM must also have good intellectual abilities and analytical thinking. Separately, it is necessary to note such a skill as knowledge foreign languages. The number of companies that cooperate with foreign partners is constantly increasing today. To take the position of key account manager in a large organization, you simply need knowledge of the English language.
Pros and cons in the profession
This profession requires constant contact with people. It is suitable for those who have active life position, knows how to analyze the situation and make predictions. The advantage of this profession is that a key account manager can quickly build a career, taking higher positions in the company due to his personal charm and ability to win people over. Another positive point is the opportunity to receive very high wages. But since the level of compensation depends not only on the skills and abilities of the specialist, but also on the capabilities of the company as a whole, the factor of instability of earnings, the dependence of the level of income on the number of transactions concluded and interest received will be a minus for many candidates.
The level of compensation depends not only on the skills and abilities of the specialist, but also on the capabilities of the company as a whole.
Problems may arise when the skills and abilities of a specialist are not fully in demand by a particular company. For example, good specialist ends up a victim of the organization's poor marketing policies. There is only one way out of this situation - looking for a new job.
Salary
The salary of key account managers is rarely a fixed salary. Most of from them receives interest from transactions. The percentage can come from the margin - from the difference between the cost of the product and the amount for which it was sold - or from the total amount of the transaction. The latter includes the so-called agency fee, which is where bonuses are awarded to the manager. The size of the agent's fee can vary from 10 to 15% of the transaction amount if the transaction is medium, and be equal to approximately 5% if it is large.
Wage for a key account manager in the “fruitful” and “lean” months for the company can differ significantly - from 10 thousand rubles to 10 thousand euros per month and even more. KAM's earnings depend not only on personal skills, but also on the company's capabilities - how long it can provide a given product or service. If an organization does not fulfill its obligations in a timely manner, for example, for some reason it delays the process of providing a service, this will negatively affect both its reputation and the profit received.
Prospects
A successful key account manager may subsequently take the position of head of sales, director of development or commercial director. Career, as a rule, is determined by the number of successful transactions.
As for financial prospects, what larger company, the larger the deal and the larger the bonus KAM receives. Therefore, when looking for a job, job seekers should first of all pay attention not to the “Salary” column in the job description, since a fantastic amount may be indicated there, but to the scale of the company and its business reputation in the market.
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