In my last post, I explained the basics of what a KAM was – a way of prioritising your sales team’s effort by visualising the data you have on accounts. In this post, I’ll show you a couple of examples of the most basic KAM you might use. In my next post, I’ll be showing you a few ways you might want to refine your KAM and make it more useful.
First up, let’s put together some very basic information.
I have 10 companies here, and from having discussions with them, I’ve worked out all the money they could possibly spend on my services in the next 12 months. That’s going to be my initial attractiveness score. The other score is their satisfaction – I’ve initially based this on my subjective opinion of how happy they sound when they talk to me. I want to measure attractiveness on a scale of 1-10, so I’ll divide the potential revenue by 2000. (20000/2000=10, which is my maximum attractiveness at the moment).
I’m going to be very dull and put this all into a basic scatter graph. For my very basic first edition KAM, I’m also going to divide the quadrants equally right along the middle.
My first glance tells me I have a bit of problem. Two of the accounts that could spend a lot of money on me in the next 12 months are pretty unhappy with me – what’s happened with company G and company J? I’ll have to make sure one of my best revenue-savers handles those two accounts.
More positively, three accounts that could spend a lot of money on me in the next 12 months are pretty happy with me – that’s companies B, I and H. I’ll make sure they get a very good account manager to ensure I get as much of that potential revenue out of them as possible.
The bottom right-hand corner gives me a list of the companies that are happy with me but can’t pay me a lot this year. They’d probably be good companies to train my newest hire on and a steady source of revenue for reasonably little effort. The bottom left-hand corner aren’t very happy with me at the moment but they also can’t pay me a lot. It’ll be harder to get money out of these guys than the companies on the right, so they’re right at the bottom of my list of priorities.
If I’m really desperate for money, I might lower the red line a bit to change the quadrants around. This could bring company F and E up in importance. Alternatively, I might be looking for example case studies which means I need people to be really happy with me – in which case I’d move the blue line over to the right, and focus on getting people into the ‘satisfied’ quadrants. From my very fast graph, I can tell that I don’t think anyone’s really happy with me – at a 9 or 10 – so maybe I need to work on getting my customer service up to scratch.
Obviously, this isn’t hugely necessary when you only have a small number of accounts. When you have a hundred or so, however, it becomes increasingly important as a way of ensuring you’re focusing your best sales directors on the top accounts – it can become very easy to lose track of which accounts are assigned to which member of the sales team. My very basic first edition KAM has given me an idea of who I need to assign to which accounts as well as which accounts should be at the bottom of my priority list. In the next post, I’ll be giving you some examples of how this could be refined to give me some extra information.