When implemented correctly, Key Account Management (KAM) can be a significant competitive advantage and a driver of sustainable growth. However, for KAM to reach its full potential, it is not enough to effectively manage the relationship with the key account. Internal collaboration between different teams within the company must also be well-coordinated.
The Pivotal Function of the Key Account Manager
The key account manager plays a crucial role in this context: He is responsible for ensuring a smooth collaboration between key account and supplier. This includes ensuring that agreed delivery deadlines are met, resolving emerging issues, and involving the right experts in developing customer-specific solutions.
Therefore, he must succeed in mobilizing the required resources for the key account, as well as connecting the people or business units that are involved directly or indirectly in providing services for the key account. The better he is at coordinating the internal network, the more success he will have.
Typical Challenges of Internal Network Management
In practice, the following challenges arise:
- Limited authority: The key account manager has no formal authority over other departments and must rely on their cooperation. Their effectiveness largely depends on how well they can motivate other departments to collaborate.
- Conflicting goals: While solving customer-related issues, the key account manager often encounters internal obstacles. These often stem from conflicting objectives or unclear responsibilities within the organization.
- Fragmented information base: Although the key account manager serves as the main interface for the customer, they often lack a comprehensive overview. Since different employees interact with the customer in their daily operations, there is a risk that crucial customer knowledge remains decentralized, is lost in silos, or is not systematically recorded.
Measures to Optimize the Internal KAM Network
To overcome these challenges, key account managers should actively strengthen their internal network. Cross-departmental collaboration not only increases efficiency but also maximizes the impact of KAM. The following measures can help:
- Actively build an internal network: Key account managers should identify and involve key individuals in relevant departments. Close cross-functional collaboration enhances their ability to drive initiatives and improves coordination.
- Clearly define the key account manager’s role: The role of the key account manager must be clearly established and recognized throughout the organization to ensure effective, customer-focused collaboration. Top management support is essential to reinforce this positioning and resolve conflicts of interest decisively.
- Establish collaboration guidelines: A well-defined framework ensures efficient cross-functional coordination. Cross-functional workshops and standardized processes facilitate smooth collaboration and secure a unified data foundation in key account management.
The success of the key account manager is reflected in higher customer satisfaction and more efficient use of company resources – both of which are crucial factors for long-term business success.
Suggested Readings:
Peters, L. D. (2024). “The more we share, the more we have”? Analyses of knowledge sharing by key account managers. Industrial Marketing Management, 120, 100–114.
Peters, L., Ivens, B. S., & Pardo, C. (2022). Key account managers’ identification profiles and effectiveness: A fuzzy-set qualitative comparative analysis. Industrial Marketing Management, 107, 253–265.
Hengstebeck, B. B., Kassemeier, R., & Wieseke, J. (2022). What comprises a successful key account manager? Differences in the drivers of sales performance between key account managers and regular salespeople. Industrial Marketing Management, 106, 392–404.