Although selling and managing key accounts have a number of similarities, there are stark differences. As with anything, the devil is in the details. Your company has to make a strategic decision to establish key customer relationships by selecting a few customers or go with a much broader strategy of selecting a much larger set of customers.
It helps to look at each closely and the differences become apparent.
- Over the past twenty years, the development of key account management has evolved in nature to a more encompassing relationship than just sales. Selling has been around for hundreds of years and a more short-term proposition – more transactional. The cadence is shorter and more direct. For key accounts, the cadence is longer in making sure your product or service meets with their goals.
- When you sell, you sell value once at a time. There is a narrow focus and there is more pressure to get the sale. Your product or service fills a specific need the customer has at the time.
- With key account management, there is a long-term interest in providing value for the customer that goes beyond a single sale. It’s more strategic in nature and more of a partnership. Company objectives are aligned with the customer and there are mutual advantages for both parties.
- In selling, price plays a critical role in whether the customer makes the purchase or not. It can be more defensive and the seller must overcome this defensiveness. With key account partnerships, the relationship becomes more than just price and is based upon a thorough understanding of the customer’s objectives and business. The customer has more of an experience of collaboration and trust.
- Key account management takes into consideration the involvement of all departments and relies on everyone working together in support of the customer.
Either approach can be successful stand-alone or used in combination. Both approaches have the same goal in mind – increasing revenue – but have different paths to get there. Make you’re your sales reps have the proper skills and training whether or not they’re associated to both roles.