Key account manager jobs: Are your key account managers and customer-focused sales teams armed with a logical pricing strategy?

 

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Sometimes even the most experienced key account manager or sales leader has to develop a sense of gallows humour and see themselves as fulfilling a very demanding and often thankless task (see Glengarry Glen Ross).

 

They are often the person stuck between a customer (and increasingly often a skilled procurement executive) and a demanding business of their own. Thus, these two entities have quite diverging criteria for success usually – the procurement officer is to drive down prices / and or extract more value from the supplier – and the business itself seeks to do the opposite (or deliver more value and maintain or increase profitability).

 

Of course, the procurement professional can be often self-defeating by just focusing purely on price (we will cover that in our future blog). In this blog, we will discuss whether the key account manager is supported in your business and whether they are supported in pricing tactics when they go into a big negotiation.

 

The responsibilities of the Key Account Managers and sales representatives include building leads, building relationships, completing and submitting tender proposals, negotiating with customers, seeking resigns and also defending value and pricing pressure without any guidance or education on strategies of pricing.

 

In this article, we will provide you with the best practices of a key account manager and the key account management techniques. Also, we will share with you several unique skills crucial to a successful account. Additionally, we will explain why pricing tactics should be a part of a key account manager’s job. Furthermore, we will talk about the major sources of stress for key account managers.

 

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Definition of Key Account Manager

 

KAM is the process of creating long-term ties with the company’s most valuable accounts. Hence, these accounts make up the majority of the business’ income. To bring buyers into business partners, a key account manager (KAM) typically provides dedicated resources, unique offers, and periodic meetings.

 

Not only do KAMs find creative ways to meet the client’s challenges and opportunities, but they also present reports about the client’s progress to key stakeholders.

 

The core role of a key account manager (KAM) is to handle the most valuable clients. In addition, they manage the account, build strong relationships with the client, identify challenges or opportunities, and find ways to assist with these challenges and opportunities.

 

If you use the right key account strategy, you’ll reap greater sales volume and long-lasting strategic relationships.

 

How a Key Account Manager Drives Business Growth Through Client Retention

 

A key account manager plays a vital role in helping a business grow through client retention. Their job is to manage relationships with important clients, making sure they stay satisfied and loyal to the company. Keeping these key clients is crucial because it’s usually more expensive to find new clients than to keep existing ones. By focusing on what key clients need, a key account manager helps the business maintain steady revenue.

 

For example, if a key account manager works with a large retail client, they might adjust product pricing to ensure it stays competitive. This keeps the client happy and loyal, preventing them from looking for other options. Regular communication is another important part of the job. A key account manager stays in touch with clients, understands their needs, and offers tailored solutions. This level of attention makes clients feel valued and more likely to stick around.

 

Retaining key clients also creates growth opportunities. When a key account manager ensures a good relationship, clients are more likely to come back, refer others, or even buy additional services. For example, a software company might keep a major client happy by giving them access to new features early. This helps maintain the client’s trust and loyalty, leading to continued business.

 

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What are Account Management Best Practices

 

  • A winning strategy hinges on being selective. Be sure to choose the right key accounts — and apply the same criteria to each one. Especially for global key account management.
  • Regularly review your key accounts to make sure they still require additional time, energy, and resources.
  • Keep track of non-key accounts. If a customer is about to have a windfall, they may qualify as a strategic account. Convincing them now will earn you their loyalty before any other company does.
  • Periodically assess your selection criteria. Are your current key accounts generating as much ROI as you anticipated? If not, something might be wrong.
  • Assign dedicated strategic account managers (or KAMs). These employees are cut off from sales, if possible.
  • Build diversified teams around each account manager. To serve your clients well, you’ll need a menagerie of skills, disciplines, and expertise.
  • If possible, name an executive sponsor for each account. They can play a major role in getting the necessary resources, connecting with the C-suite at the target account, and providing high-level guidance.

 

Key Account Management Articles of Process

 

  • Set up a step-by-step guide for internal account reviews. Depending on the size of the team, the value of the account, and the dynamic of the relationship. These might be weekly, monthly, or quarterly.

 

  • Regularly check the account’s engagement and loyalty. Both should trend upward.

 

  • Schedule recurring check-ins with the account to get their feedback, address any issues, and find areas for improvement.

 

Tools and Techniques in Account Management 

 

  • Use a CRM to keep a log of your interactions with the account stakeholders and keep everyone on the account team updated on what’s happening.

 

  • Implement an email tracking and notifications tool to give notice when your recipients open your emails and click any links.

 

  • Use LinkedIn (either the free version or LinkedIn Navigator) to get updates on your account’s market and industry, strategic shifts, hiring and firing decisions, and more.

 

  • Set up calls and appointments with a meeting tool to make the process seamless for the attendees.

 

  • Invest in a video platform so you can create personalised videos for prospecting and relationship-building.

 

A well-planned, comprehensive key account management strategy won’t just keep your best customers satisfied — it will also provide opportunities to improve the relationship. Your retention rates and bottom line will both benefit.

 

 

Unique Skills Crucial to a Successful Account

 

1. Understand the Company

A key account manager must have a great understanding of her account’s strategy, market position, finances, products, and organisational structure. They’ll use this knowledge to make business cases showing how price changes, customisation, and add-ons will add value.

 

2. Collaborate

Key accounts don’t usually buy off-the-shelf: They want a tailored blend of products and services suited to their needs. With that in mind, it’s crucial a KAM can work across the organisation to develop these offerings.

 

3. Lead

A KAM has to have great leadership to guide her team members (which might include a salesperson, marketer, technical support, implementation and/or onboarding specialist).

 

4. Orchestrate and Execute

Key account programs demand movements. To be successful, KAMs should be capable of planning short-term and long-term plays, carrying them out, analysing the outcomes, and applying those takeaways to their future strategies.

 

5. Dynamic Business Acumen

What’s business acumen? It’s the understanding of how a company makes money. A KAM should develop dynamic business acumen. According to BTS, this is the “knowledge of how the drivers of customer growth, profitability, and cash flow are changing, of how the customer’s markets are changing, and of how the interrelationships within the customer’s business are changing.”

With this knowledge, they’ll be able to solidify their position as a trusted resource and advisor for their clients.

 

6. Analytic Skills

In addition to having business acumen, key account managers should have an analytical mindset. Their analytic skills will help them create and present business cases. They need to be able to think quickly and apply their knowledge to a variety of different clients and markets and be confident when presenting the information.

 

Pricing Recruitment For Pricing Managers!

 

Why Pricing Tactics Should be Part of the Equation in Account Manager Jobs

 

I previously worked for a large B2B industrial corporation where roughly 25% of the revenue came from approximately 40 key account clients – with a tail of about 50,000 smaller clients.

 

The Key Account Managers’ and sales representatives’ responsibilities include building leads, building relationships, completing and submitting tender proposals, negotiating with customers, seeking resigns and also defending value and pricing pressure without any guidance or education on strategies of pricing. Thus, even when stated like that, it is a tough remit.

 

When you have to work with internal teams, customer service, finance, etc. and be the chief point of contact for the customer – i.e. you are the national account manager – but you are seen as the face of the company. You have to be responsible for everything the company does – and that, of course, includes pricing, financial performance and value.

 

The Key Account Manager’s Role in Effective Pricing Negotiations

 

A key account manager plays a big role in making pricing negotiations successful. Their job is to help both the company and the client agree on a price that works for everyone. This can be tricky, but a key account manager makes sure the process runs smoothly and fairly.

 

One of their main tasks is understanding the client’s needs and what they can afford. For example, if a client is concerned about a price increase, the key account manager explains why the change is needed—like rising production costs. They might also suggest flexible payment options or extra value to make the higher price easier to accept.

 

Building trust is another key part of a key account manager’s role. They stay transparent, explaining how the pricing works and answering any questions the client might have. For instance, if they’re negotiating with a big retail client, the key account manager might explain that the new price covers improvements in product quality or faster delivery. This honesty helps clients feel confident that the price is fair.

 

A key account manager also focuses on finding a solution that benefits both sides. They try to meet the client’s budget while making sure the company stays profitable. Offering value-added services or discounts for larger orders can help close the deal.

 

Overall, a key account manager makes pricing negotiations smoother and more effective. Their work helps build trust, maintain strong client relationships, and drive long-term business success.

 

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Major Sources of Stress

 

One of the major sources of stress is that the account managers are not armed with any pricing policy when going into a negotiation. For example, they are not armed with the ability to move on rates, a playbook on how to negotiate or even been trained in discussing value.

 

If that was not enough – they would be given a hard time for reducing prices. But there’s no incentive at all to increase rates! The amazing thing is that most of the key account managers still did their best. That is, to defend the company and help the customer.

 

When you look at it from an outside perspective – and having knowledge of pricing, the remedy is pretty straightforward. The big question is how can you build stakeholder engagement in a company and gain C-level support to actually help the sales teams do their jobs.  One of the biggest frustrations for pricing professionals is knowing that you can really help the sales effort, but not getting that buy-in or remit.

 

 

Click here to access your free PDF guide on driving pricing strategy in your business.

 

For a comprehensive view on building a great pricing team to prevent loss in revenue, Download a complimentary whitepaper on How to Build Hiring Capability To Get The Best Pricing Team.

 

Are you a business in need of help to align your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

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