key account business plan

Key Account Management: The Ultimate Guide

Published: February 28, 2023

A key account is one of your company's most valuable customers. These customers demonstrate value in a few ways:

• They represent a disproportionate percentage of revenue,
• they refer new prospects to your company, and
• they give your business credibility in their industry.

However, "value" is subjective, and your organization needs a strict way to define and execute key account management.

In this comprehensive guide to key account management, you'll learn:

• What Key Account Management is
• The Role of a Key Account Manager (Including a Job Description Template)
• Key Account Management Strategy (Including a Free Template)

How to Identify Key Accounts

Key account management best practices, what is key account management.

Key account management is a business strategy where an organization provides personnel and resources to valuable clients in order to develop a mutually beneficial relationship. The goal of key account management is to sustain or grow profits from these large accounts.

Free Account Management Template

A strategic template for your account-based marketing, sales, and management.

• Key Business Initiatives
• Account Competitor Analysis
• Sales Opportunities, Targets & Risks

You're all set!

Click this link to access this resource at any time.

Fill out the form to access this free template.

Businesses that use key account management strategy reap great sales volume and long-lasting strategic relationships. Not to mention, they have a better opportunity to grow revenue from these accounts through upselling and cross-selling .

However, professional services firm BTS points out , key account programs can lead to increased costs and lower margins. That's the inevitable outcome of giving a customer greater resources and often your best discounts.

But don't be discouraged, the key to successful key account management is in the longevity of the clients, not the profit margins. Their tenure with your businesses (and the money that comes from it) more than makes up for the discounts here and there. This strategy is a perfect example of the Pareto Principle where 20% of the inputs bring in 80% of the results.

The benefits of key account management are only realized when you have the right staff in place. Let's look at the role of the key account manager and how they interact with the rest of the team.

Key Account Manager

A key account manager (KAM) is responsible for being a representative of the business to its most valuable clients. KAMs manage the key account, build strong relationships with the client, identify challenges or opportunities, and find ways to maintain success within the account.

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

Key Account Management Skills

• Get to know the customer.
• Cross-functional collaboration to benefit the customer.
• Effective leadership of the key account team.
• Coordination and planning of activities for complex accounts.
• Strong business acumen.
• Ability to use analytical skills to support a variety of clients.
• Clear written and verbal communication skills.

Some companies assign their reps as key account managers to one or two customers. This setup isn’t ideal because selling and account management require different mindsets, skills, and objectives. Unless your team is prohibitively small, separate the sales and account manager roles.

A key account manager is focused on becoming critical to her customer's operations — not winning a deal.

Here are several unique skills critical to a key account manager's success:

1. Get to know the customer.

A key account manager must have an intimate, sophisticated understanding of her account's strategy, market position, finances, products, and organizational structure. Then, they’ll use this knowledge to make business cases showing how price changes, customization, and add-ons will add value.

2. Cross-functional collaboration to benefit the customer.

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

3. Effective leadership of the key account team.

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

4. Coordination and planning of activities for complex accounts.

Key account programs have a lot of moving parts. To be successful, KAMs should be capable of planning short-term and long-term plays, carrying them out, analyzing the outcomes, and applying those takeaways to their future strategies.

5. Strong business acumen.

A KAM should develop dynamic business acumen — an understanding of how a company makes money — to tell how its customers make money or keep tabs on any business changes.

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

6. Ability to use analytical skills to support a variety of clients.

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 various clients and markets and be confident when presenting the information.

7. Clear written and verbal communication skills.

Key account managers are responsible for keeping clients and other stakeholders updated about any issues. Sometimes, these account managers are required to make oral presentations. As such, they need to be able to write and speak clearly.

Key Account Manager Job Description

Use this Key Account Manager job description to find and attract the most qualified candidates.

Key Account Manager vs. Account Manager

It's important to note, though, that key account managers differ from account managers. Account managers manage non-key clients that bring in less revenue or may not be an ideal product fit. Key account managers focus on only the most valuable clients of a business.

The relationship between account managers and key account managers is not hierarchical as account managers do not report to KAMs, but KAMs may sit in more senior-level roles on the same team or an adjacent team.

The Difference Between Key Account Management and Selling

Key account management and selling are very different. While a salesperson focuses on the short term — by necessity — a key account manager (KAM) prioritizes the future.

Sales reps also zero in on specific opportunities, while KAMs have broader goals, including collaborating with the customer on mutually beneficial projects, helping the customer meet their objectives, and making sure the customer is getting the necessary support.

If you're hiring a key account manager for the first time, one of the first duties they perform may be selecting the key accounts that they'll serve. There are many factors to consider when carrying out this task, but below, we get you started with some of the most common criteria.

SBI recommends choosing three to five selection criteria when identifying key accounts. This limitation allows your new KAM to focus on business need and impact.

Here is a list of 10 to choose from when identifying key accounts for your business:

• Product Fit: The size of the target market that this client has access to who would use the product or service your company sells.
• Average Transaction Size: The amount of money the account spends with your business, on average.
• Revenue Potential: The amount of money the account could spend with your business in the future.
• Purchasing Process: The process by which the client purchases your product. ie: Do they purchase with just one decision maker? Is there a group who decides what to purchase? How long does payment processing take?
• Partner History & Potential: Are they currently or were they formerly a partner with your company? Do they have the potential to be a partner in the future?
• Customer Tenure: The amount of time the account has been a client of your business.
• Solvency: The account's financial ability to pay their debts.
• Existing Relationships: The relationships the account has with other businesses that could potentially become your clients.
• Cultural Fit: Alignment between the way in which the account treats their own customers, and staff as well as your staff.
• Geographic Alignment: If applicable, the physical proximity to your business's headquarters or service centers.

Out of context, these metrics won't lead to a great list of key accounts. You'll want to develop a formula that weighs each criterion based on importance to your organization. Then, calculate how much potential there is to expand each account.

You can use a key account scoring matrix to identify your key accounts across these criteria. Simply evaluate each account based on the criteria you select and assign them a score from 1 to 10 in each category. The accounts with the highest scores will be your key accounts.

While it's tempting to label many customers as "key accounts" at once to alter your company’s trajectory significantly, it’s better to be conservative. You can't tell a key account they've been demoted, but you can tell a traditional buyer you're promoting them.

In addition, you don't want to overcommit yourself. Starting a KAM program requires organization-wide change, support from the C-suite, hiring and training employees, and implementing new processes. Starting small allows you to focus your efforts.

Key Account Management Strategy

• Set objectives.
• Deliver exceptional products and services.
• Measure account growth outcomes.
• Anticipate future account needs.

You've got a short list of your key accounts, and you've hired the right folks to be key account managers. Now, it's time to execute the strategy. But how do you do that?

This four-step process will guide you through a key account management strategy.

1. Set objectives.

Before you can share the great news with your customers that they're being promoted to key account status, you need to level-set expectations internally and externally. The way to do that is by setting key account management objectives.

This process works just like it would for any other strategy. Using the why, how, what objective-setting framework , you can get to the root motivation of having a key account management strategy and come out the other side with measurable results.

2. Deliver exceptional products and services.

Next, you've got to act on the objectives you've set by outlining how you'll deliver on those promises.

Whether you're selling physical products like clothing and accessories, or a pioneer of a new software-as-a-service, you want to have a sure way to deliver those products to your key accounts consistently.

Your key account manager is responsible for ensuring this happens and that the account is delighted every single time. This means they'll need to work closely with sales, service, and operations teams to get everyone on the same page for the key account.

It could also be worthwhile to set up key account-specific processes and procedures so that the client knows what to expect and your team knows how to deliver.

3. Measure account growth outcomes.

Over time, the end goal of a key account management strategy is to grow the account in terms of revenue and client-business relationship. This should be straightforward to measure because you can use the metrics that correlate to the criteria you used to select the key accounts in the first place.

For more quantitative criteria, like product-market fit, you can look at adoption or usage rate within the account to determine how useful your product or service is to the client.

4. Anticipate future account needs.

The strategy doesn't end with measurement, though. The final step is to bring it full circle by anticipating the future needs of the key account. If they're purchasing more units than they did before, there may not be any more opportunities for volume growth, but it's possible that the average transaction size has room to increase.

Or there may be an opportunity to have the key account beta test a new product or offering that would align closely with their target market.

The takeaway here is to keep the account engaged, even beyond monetary transactions. Remember, key account management is all about building and maintaining mutually beneficial relationships, so be sure to think outside of the invoice when looking for ways to strengthen the relationship.

Key Account Management Plan Template

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Is Key Account Management the Right Strategy for Your Business?

Despite the potential benefits of key account management to your bottom line, it's not a good fit for every organization.

Consider the following points before you go all-in on a key account strategy.

1. How transactional your current sales process is.

If your sales cycle is relatively short and your sales reps have minimal interactions with prospects, key account management probably isn't the right choice. Key accounts require consultative selling techniques — and it will be hard to teach your salespeople to adopt entirely new processes for just a few clients.

2. If your product has upsell and cross-sell potential.

There's little point in continuing a relationship with the customer after the sale if they're not going to buy more. (Obviously, you still want to provide excellent customer service and support to promote word-of-mouth marketing and high retention rates.)

3. Your ability to 'land and expand.’

The above rule has an exception: If you can get your foot in the door of the prospect's company and then grow the account by selling to other departments, offices, subsidiaries, etc., a key account strategy may be a good investment.

4. The competitive landscape you're facing.

A key account program can serve as a competitive advantage. For example, imagine your customer has narrowed down their choice of vendor to you and one another company. If you can promise to make them a key account — and your competition can't do the same — you're likely to win the deal.

5. Company capacity and resources.

Successful key account management depends on company-wide support, executive buy-in, and a dedicated key account team. You'll also need enough runway for an investment that might take 12, 24, or 36 months to recoup.

According to RAIN Group , the most significant difference between high-performing companies and everyone else is an effective account planning tool.

A key account plan helps you identify the most significant possibilities for growth, potential roadblocks, threats from the competition, and more.

You can tailor an existing framework to your own needs or create a customized plan.

Whatever option you take, your account plan should include:

• Your relationships within the account
• The customer's current business plan, objectives, and financial health
• Your targets for the account
• Your strategy for hitting those targets

Let's delve into each of those in more detail.

Relationships

Map out every customer stakeholder . This information will help you figure out which relationships you need to build and maintain — as well as anyone who could potentially derail your plans.

Note each person's title, role in the decision-making process, how much contact you've had within them, and how "friendly" they are.

Customer's Business

To provide value to the account and find mutually beneficial opportunities, you need an in-depth, sophisticated understanding of their business.

Stay up-to-date on their key business goals, financial health, and current initiatives. You should also regularly run a SWOT (Strengths, Weaknesses, external Opportunities, external Threats) analysis.

Account Goals

This section should cover how much this account is currently worth, which opportunities you've lost, won, where you see potential revenue growth and your projected value for those opportunities.

It should also outline your short-, mid-term, and long-term goals and the owner of each. For example, maybe your sales engineering team is responsible for getting a meeting with the CTO by January. A less immediate goal might be getting 60% of a new department using the free version of your tool. Your ultimate objective is to transform the entire department into paying users.

Account Strategy

This section is arguably the most important. It takes your goals (in other words, your account wishlist) and breaks down the actions you need to take to reach them.

Use the same structure you used for your objectives: Short-term, mid-term, and long-term.

To give you an idea, the key steps you'll take for your January meeting with the CTO might be:

• Strengthen relationship with VP of Engineering
• Develop compelling value proposition for meeting with CTO
• Ask VP to request a meeting with CTO on your behalf

The more specific and actionable these actions are, the better. Strategic account management involves juggling several initiatives, priorities, and campaigns at one time. Without clear direction, your team will go off in a thousand directions. Plus, you can continuously adapt your strategy down the line if something changes.

Wondering how to get the optimal results? Follow these best practices.

• Select the right accounts.
• Build a dedicated team.
• Consistently measure account performance.
• Invest in the right tools.

1. Select the right accounts.

A winning strategy hinges on being selective. Make sure you pick the right key accounts and apply the same criteria to each one.

Regularly review your key accounts to verify they still require additional time, energy, and resources. If they perform as expected to justify the resource allocation, then continue on. However, if for some reason they are underperforming or the account no longer feels like a good use of additional resources, you may want to consider scaling back.

Additionally, keep track of non-key accounts. For example, if a customer is about to experience significant growth, they may qualify as a strategic account. Courting them now will earn you their loyalty before any other company in the space.

Periodically assess your selection criteria. Are your current key accounts generating as much ROI as you anticipated? If not, it could be a sign you're using the wrong measures.

2. Build a dedicated team.

Even the best KAMs can’t get the job done alone. Ideally, the KAM role is not performed by someone who has sales rep duties on their plate simultaneously.

Each account manager should have a cross-functional support team to support the proper execution of deliverables related to the client’s account. These teams should include a range of skills, disciplines, and expertise to serve your clients well.

If possible, name an executive sponsor to each account. They can play a significant role in getting the necessary resources, connecting with the C-suite at the target account, and providing high-level guidance.

3. Consistently measure account performance.

What gets measured gets done, so staying on top of account performance is critical for success. Set a cadence for internal account reviews. Depending on the team size, account’s value, and the relationship’s dynamic, these might be weekly, monthly, or quarterly.

Consistently measure the account's engagement and loyalty. Both should trend upward. From here, you should also schedule recurring check-ins with the client to get their feedback, address any issues, and find areas for improvement.

4. Invest in the right tools.

Having the right tools in place can make the job of a KAM a lot easier and more effective. For example, use a CRM to keep track of your communication with the account stakeholders, give everyone on the account team visibility into what's happening, and minimize duplication of effort across the team.

If you are having a hard time getting responses to your emails, implementing an email tracking and notification tool can help. This type of tool will let you know precisely when your recipients open your emails and click any links.

Use LinkedIn (either the free version or LinkedIn Navigator ) to monitor changes in your account's market and industry, strategic shifts, hiring and firing decisions, and more.

Eliminate back-and-forth emails about meeting scheduling by using a meetings tool to make the process seamless for the attendees.

You can also try investing in a video platform such as Loom so you can create personalized videos for prospecting and relationship-building.

Grow Your Business With a Key Account Management Strategy

A well-planned, comprehensive key account management strategy won't just keep your best customers satisfied — it will also provide opportunities to grow the relationship exponentially. As a result, your retention rates and bottom line will both benefit.

Editor's note: This post was originally published in March 2020 and has been updated for comprehensiveness.

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How to Succeed at Key Account Management

• Lynette Ryals

Key account management (KAM) is one of the most important changes in selling that has emerged during the past two decades. KAM is a radically different organizational process used by business-to-business suppliers to manage their relationships with strategically-important customers, and it produces measurable business benefits. Not surprisingly, smart suppliers are keen to implement KAM. But, […]

Key account management (KAM) is one of the most important changes in selling that has emerged during the past two decades. KAM is a radically different organizational process used by business-to-business suppliers to manage their relationships with strategically-important customers, and it produces measurable business benefits.

• LR Lynette Ryals is professor of Strategic Sales and Account Management at Cranfield University School of Management.

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Strategy and Planning

The ultimate one page key account plan & template.

Table of Contents

What is a one-page key account plan, anyway, 7-step key account planning process, step 1: account overview.

• Client snapshot. Start with the basics. Who is your client? What do they do, and what are their priorities? Understand their mission and vision.
• History and milestones. What achievements have you celebrated together? What challenges did you conquer? Learn from the past to better navigate the future.
• Current challenges. Get into the detail of what’s keeping them busy, right now. Look for problems they need solving or paths that need to be cleared to let them focus on big picture stuff.
• Relationship strength. On a scale of 1–10, how strong is your partnership with the client? It’s not about the person (you and your key contact), but about the institution (the company as a whole). Knowing where you stand gives you a reality check and may identify areas for improvement.
• Growth opportunities. What potential for growth does your client have. What role you can you play in guiding them towards those opportunities? Capture the obvious ideas, but think creatively and look in unexpected places too.
• Key contacts. Keep an updated list of who’s who in the client’s organisation. Find the people that can make decisions and can get things done.

Step 2: Objectives

• Understand goals. Begin with the end in mind. What targets is your client aiming for, and why are these goals important? Make sure what you’re chasing after matters to your client too.
• Measure success. Agree on what you’re aiming to achieve. Is it efficiency, quality, cost reduction, cost avoidance? Something else? Setting these targets early means you’re both racing toward the same finish line.
• Joint goal setting. Invite your client into the planning process. You want them to think it’s our account plan, not your account plan. It will be hard to get things off the ground if your client is not invested in its success.

Step 3: Solution

• Match goals with capabilities. Link your client’s goals with your strengths. Ask, “How can we get them better results, faster, and in a way no one else can?”
• Customisation. Your solutions should reflect your clients situation. Position your messaging and configuration so that it meets their unique challenges and ambitions. Your client shouldn’t struggle to understand the relevance.
• Embrace innovation . Propose bold, innovative ideas that could drive breakthrough results. That’s what key account managers are for. Your client can come up with the obvious solutions on their own. Think out loud and see where the conversation leads.
• Visualise success. Whenever you propose a solution, show your client what success looks like. Help them see the path to the promised results.
• Seek feedback. Bring the client into the conversation. Keep refining your solutions until you have one that you can both agree will work.

Step 4: Action Plan

• Break it down. For every solution, list all the steps you need to take to implement it. Each action should have a clear ‘who’, ‘what’, and ‘when’.
• Assign ownership. For each action step, choose someone that is responsible to make sure the task gets done. Beware of taking on all the heavy lifting. This is a joint account plan and the workload should reflect effort from both sides.
• Set deadlines. Deadlines are commitments to progress. Agree realistic timelines for each action to help maintain momentum.
• Determine resources. What do you need to make each step happen? Is it time, money, decisions, or tools? Identifying these resources upfront avoids roadblocks later.
• Create a communication plan. Decide how you’ll keep the lines of communication open. Regular check-ins, shared project plans, or email updates—it’s up to you. By keeping everyone informed and engaged, you’ll prevent surprises.

Step 5: Change Management

• Use force field analysis. Make a list of all the pros and cons of making a change, so you can deal with them accordingly. Let’s say your plan has a ton of reasons stacked against it. Well, you’ve got two choices: either drop the plan altogether or tackle those reasons one by one. This quick check helps you avoid chasing after ideas doomed from the start or dive into them eyes-wide-open, knowing the hurdles you must overcome to succeed.
• Know your stakeholders. Change affects people in different ways, and often emotion takes over reason. Be empathetic to those that are struggling to deal with change. But also keep an eye on people who may actively undermine you with their negative influence.
• Communicate. Regular, open communication builds trust and reduces uncertainty. Let everyone know what’s happening, why it’s happening, and what the expected outcomes are.
• Offer training and support. Change may require new skills or adjustments to routines. Give your teams what they need to feel ready to tackle new challenges.
• Look for quick wins. Identify opportunities for early success. Quick wins boost morale and highlight the benefits of change. And it gives clients reassurance that you know what you’re doing and your account plan is a winner.
• Watch and adjust. Keep a close eye on how the change is unfolding. Pivot your strategies in response to feedback and the realities on the ground.

Step 6: Implementation

• Final checks. Before launching your account plan, do a last round of checks with your team and client. Ensure everyone’s on the same page and make any last-minute tweaks.
• Get everyone onboard. Brief everyone involved in the account plan, especially those on the front lines. Make sure know what to expect and why their participation is so important for the plan to succeed.
• Check resources. Get into the habit of double-checking that everything you need is ready not just when you launch your plan, but also as you’re making it happen. The last thing you want is for your plan to fall apart because someone dropped the ball, a bill went unpaid, or any other surprise pops up.
• Start monitoring . Track progress from day one. The point isn’t to micro-manage, but to intercept and address any issues quickly.

Step 7: Review and Optimise

• Set a review cycle. Agree on a timetable for evaluate the plan’s progress that reflects the scope and pace of your project. Reviews should be part of your routine, not an afterthought.
• Collect feedback. A wide range of perspectives gives a more comprehensive view of what’s happening. It also avoids bias, so don’t let everything be filtered through your key contact
• Check your progress. Measure your achievements against the goals you set at the beginning. It helps you objectively assess where you stand and that your account plan is delivering tangible benefits.
• Celebrate wins. Recognise and celebrate successes. It’s an easy way to acknowledge the hard work and dedication of everyone involved. This is a marathon, not a sprint, so little things like this can really help maintain momentum.
• Stay flexible. Life happens, so be ready to adapt. Build in checkpoints to review progress and make necessary adjustments. Your plan should be resilient. And if something isn’t working, let it go.
• Share any changes. Make sure to keep everyone informed about any changes to the plan or strategy. Otherwise, you may find people working on tasks that are no longer important because you forgot to mention the goals changed.

One-Page Key Account Plan Template

I’ve created a super simple account plan template to make managing and growing your key accounts straightforward. It compacts everything you need into just one page.

Simply copy the table from below and paste it into your preferred program, like Microsoft Word, and you’re all set.

Optional account planning resources

I’ve also got a special template for you in Excel, Google Sheets, or Notion.

It includes:

• A formatted ready to go one-page account plan template
• An example plan to guide you
• A breakdown of 7 easy planning and action steps
• Extra lessons for more insights

Just drop your email below for instant access. 

Key account plan process summary

• Account Overview. Define all the important information about your client relevant to your account plan.
• Objectives . What does your client want to achieve, and how will success be measured?
• Solution . Identify the potential solutions that support your clients’ objectives.
• Action plan . Decide a course of action and list the steps needed to achieve your goals.
• Change management. Evaluate the chances of success through force field analysis.
• Implementation . Agree actions, assign owners, and set due dates.
• Review . Regularly review and adjust your plan to ensure you stay on track.

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Free Account Planning and Management Templates

By Joe Weller | May 9, 2023

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This article includes the top free account planning and management templates for account managers, client-facing project managers, salespeople, and account executives. Use these templates to improve client relationships and build partnerships.

On this page, you'll find a strategic account plan presentation template and a sales account plan template with space for capturing key account details. Download an account mapping template featuring an org chart, and a key account management action plan template with sample copy. You’ll also learn about key account planning elements and how to do it , along with tips on using an account planning and management template .

Simple Account Plan Template

Download a Sample Simple Account Plan Template for  Excel | PowerPoint | Microsoft Word

Download a Blank Simple Account Plan Template for  Excel | PowerPoint | Microsoft Word  

This customizable, one-page simple account plan template can help everyone on your team understand their needs, so you can establish and strengthen a long-term relationship with them. The sample template comes with text already filled in to help you proactively create a customer account plan. Start by entering the client’s primary goal and the key team members (e.g., management, decision makers). You can then create a plan of action for managing the account, including identifying any blockers, next steps, and the owner for each component of your account plan.

Strategic Account Plan Presentation Template

Download a Strategic Account Presentation Plan Template for  PowerPoint | Google Slides  

Solidify your client-account planning and management with this dynamic strategic account plan template. Enter details of your client’s key priorities, initiatives, and people so that any team member can become apprised of the client’s goals and active players at a glance. The template also includes space to specify the client’s annual account targets and revenue streams, as well as your action plan (specific actions, assignees, and due dates) — all to ensure that you strengthen your client relationship and have a solid account plan and client-management strategy in place.

Sales Account Plan Template

Download a Sales Account Plan Template for  Excel | PowerPoint | Microsoft Word  

Ensure that you proactively meet — and even exceed — your sales-account management and planning goals with this comprehensive sales account plan template. Use the template to document prospective and existing clients’ decision-making processes and other important details. Enter account-overview details (e.g., account revenue, industry, relationship strength), account objectives, account solutions, and your account action plan. This template is the perfect solution for capturing important details about prospective or existing customers and for creating a dynamic strategy to help them succeed, so you can develop and retain a strong partnership with them.

Account Mapping Template

Download a Sample Account Mapping Template for  Excel | Microsoft Word | PowerPoint  

Download a Blank Account Mapping Template for  Excel | Microsoft Word | PowerPoint   

Use this account mapping template to identify a client’s key players, so that you and your team are readily aware of the client’s hierarchy, who makes purchasing decisions, and more. Download the customizable sample account mapping template with example content to get an idea of what to include for each role. Once complete, the template provides insight for account managers, salespeople, and account executives for the roles of each individual within the client’s organization. By understanding the roles in your client’s organization, you can make more informed decisions and facilitate a more effective strategy and long-term relationship.

Key Account Management Action Plan Template

Download a Sample Key Account Management Action Plan Template for  Excel | Microsoft Word | PowerPoint

Download a Blank Key Account Management Action Plan Template for  Excel | Microsoft Word | PowerPoint  

A successful key account management action plan serves as an easy-to-follow map that accurately charts a customer’s current state, their goals, and how to help them achieve a mutually beneficial association. This template is available in two versions: blank and with sample text to guide you through the key account management action plan process. Easily capture your key clients’ details, individuals’ roles on the project, management objectives, clients’ preferred communication styles, and actionable steps to foster and strengthen the partnership.

What Is a Key Account Plan? 

A key account plan is a strategic document that outlines your objectives and strategies for your most important customers. Sales and account management teams use a key account plan to provide a coordinated approach to growing client partnerships. 

A key account plan typically includes details of your client's business, such as challenges they face, their value proposition, services they provide, and the actions and resources needed to achieve their goals. The primary aim of a key account plan is to ensure that your organization provides a coordinated, consistent, and focused approach to your most valuable clients.  It also helps you effectively allocate resources, and track client-relationship progress over time.

Elements of Key Account Plan

The elements of a key account plan might vary, depending on your business. A key account plan typically includes information about the client, their needs, their buying behavior, and the steps you’ll take to increase sales and improve customer satisfaction. 

The goal of a key account plan is to maximize the value of the relationship for both your company and your most vital customers for optimal key account management (KAM). Typically, a project manager will complete the key account plan document.

The seven main elements of a key account plan typically include: 

• Client Profile: Detailed information on the key account, including company background, main decision makers, and relevant client information. 
• Situation Analysis: An assessment of the current state of the relationship with the key account, including strengths, weaknesses, opportunities, and threats (SWOT) and competitive analyses. You can use a SWOT analysis template to determine these details.
• Goals and Objectives: Clear, measurable, and time-bound goals and objectives for the key account relationship. These are both important to cover, but goals and objectives are different and require distinct approaches.
• Strategies and Tactics: Determine how you’ll achieve the goals and objectives, including specific strategies and tactics for improving the relationship and growing the business. 
• Action Plan: A detailed plan of action, including specific activities, milestones, and deadlines for implementing these strategies. 
• Resource Allocation: A plan for allocating resources, including personnel and budget, to support the implementation of your key account plan. 
• Performance Monitoring and Evaluation: A plan for monitoring and evaluating the progress of the key account relationship regularly and adjusting  as needed.

Steps in the Process of Key Account Planning

A well-designed key account plan includes information about your client's current and future needs, their strengths and weaknesses, and the opportunities available to you. It provides a clear plan for how you will meet their needs and grow the relationship. 

The following are the fundamental steps in the key-account-planning process: 

• Identify Key Accounts Identify the key accounts that are critical to the success of the business. This might include customers who generate the most revenue or have the most potential for growth. 
• Gather Information About Key Accounts Gather as much information as possible about each key account, including their needs, pain points, buying habits, decision-making processes, and main stakeholders. 
• Analyze Key Account Data Once you’ve gathered information about each key account, analyze the data to understand the strengths, weaknesses, opportunities, and threats (SWOT) of each relationship.
• Develop an Account Plan Develop a comprehensive account plan for each key account. This plan should include specific strategies and tactics for growing the relationship, meeting customer needs, and maximizing value.
• Implement the Account Plan Work closely with the key account to execute on specific tactics, such as building stronger relationships with key stakeholders and tracking progress to ensure the plan is achieving its goals.
• Review and Adjust the Plan Regularly review your key account plan and make adjustments as needed based on changes in the customer's needs, market conditions, or other factors that may impact the relationship.

For more help with client planning and management, check out our collection of free client management and tracking templates , and our tips and best practices for mastering client management .

How to Use an Account Planning Template 

Use an account planning template to develop a detailed analysis of your account's current challenges and to identify revenue opportunities. Gather information about your goals for the key account, main stakeholders, and steps to execute.

1. Download and Name the Simple Account Plan Template for Microsoft

Download and open the Simple Account Plan Template in Microsoft Word. Save and rename the document locally.

2. Enter Basic Details About the Plan

• Click the Date box and enter the date you’re creating the plan.
• Click the Created By box and enter the name of the person responsible for the plan. 
• Click the Version box and enter the plan’s version.
• Click the Goal box and enter the goals for the account.

3. Complete the Account Plan Team Section

• For each account planning team member, double-click the team member’s NAME section. 
• When the NAME field opens, enter a name for that team member. 
• In the Title field, enter a title for the particular team member. 

• Click the corresponding image icon. Right-click and highlight Change Picture , and click the location ( From a File, From Stock Images, From Online Sources, or From Icons )  of the person’s image. 

• Select the image and click the Insert button.

4. Enter the Details for Each Action Step in the Project Account Action Plan

• Fill in the Action Step field. 
• In the Responsible field, enter the name(s) of the internal stakeholder(s) responsible for the step. 
• In the Description field, provide a brief description for each action step in your account plan. 
• In the Status field, provide the current status (e.g., Accepted, Declined ) for each step. 
• In the Outside Shareholders field, enter the names of the customer’s or client’s personnel who are responsible for that step. 
• In the Notes / Constraints field, enter any relevant notes. 

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The complete guide to key account management (2024).

Key takeaways

• Through key account management, businesses can develop strategic partnerships with key accounts, fostering collaboration and mutual success.
• By investing in long-term relationships with key customers, businesses can achieve greater stability and sustainability in their operations.

Key account management (KAM) is a business strategy that works towards fostering strong working relationships between businesses and clients that are considered to be of high value. Through successful conversion, key account managers are able to assist their clients in reaching greater levels of sustainability while also contributing to higher profit gains.

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In this article...

What is key account management (KAM)?

KAM is a strategic business practice where companies working with larger accounts are able to maintain productive relationships with them long-term. This may lead to a boost in the business’s credibility within the various industries that its clients occupy, which often establishes trust and can entice new clients to work with those businesses in the future. 

KAM solutions often include providing clients with knowledgeable personnel who can present them with guidance and valuable resources that yield active business relationships for longer periods of time, which may then translate to an increase in profitability for that business.

Efficient KAM practices should present unique opportunities for a company to connect with its clients on a level that is mutually beneficial for all parties involved. This gives a business the chance to increase revenue growth with their larger clients over time through various methods that can include upselling, as well as various cross-selling strategies.

What are the core principles of KAM?

Key account managers are expected to abide by a number of core principles that allow them to work with and nurture their high-value clients in a way that improves communication between parties and increases overall sales.  

Understanding client behavior

Perhaps the most important principle key account managers should adhere to is getting to know their clients. Account managers should possess an intuitive understanding of their clients’ market positions, their current market strategies, their finances, business structures, and the goods and services that they offer to their customers.

Utilizing a cross-functional approach

Benefiting a client seldom involves using a catch-all approach as each account is often unique, operates within different industries, and typically requires more targeted efforts to reach favorable results. A good key account manager should utilize a cross-functional approach to benefit their accounts by offering them services and tools that are customized to fit their individual needs. Working closely with these clients grants account managers the ability to identify the needs of those clients and offer products or services tailored to address and fulfill desired outcomes. 

Keeping clients and shareholders informed

Another core principle that account managers should consider involves keeping their clients and their clients’ shareholders informed of any business issues that may arise. Quickly developing an effective strategy to mitigate any issues that could snowball and cause even more problems for their clients is crucial to their lasting success. 

Understanding how clients run their daily operations

An account manager should also understand how it is that their clients generate their profits and how these clients operate day-to-day. This will give the account manager the foresight to identify any noticeable business changes, provide solutions where needed, and thereby establish themselves as a trusted resource and a market authority. 

Read more: 10 Best Customer Database Software Solutions

Why does KAM matter?

KAM is a unique business strategy that is instrumental in providing favorable results for businesses and their larger clientele. KAM is significant because it provides the foundation whereby key account managers are able to work with their clients to establish trust with a focus on sustainability. 

Working closely together to mitigate risk and tackle any issues that should arise gives account managers and their clients the ability to build a mutually beneficial future together, which in turn rewards them both as they continue to grow and collect additional revenue. 

What are the criteria for selecting key accounts?

The criteria for selecting key accounts by key account managers can vary depending on the industry, company goals, and specific objectives. However, there are some common criteria that key account managers often consider when identifying and selecting key accounts.

These common criteria may include:

Revenue potential: The potential for significant revenue generation is a key factor. Key accounts are typically those that have the capacity to contribute significantly to the company’s overall revenue.

Profitability: Key account managers may assess the profitability of potential key accounts by considering factors such as the cost of servicing the account, potential upsell opportunities, and the overall impact on the company’s bottom line.

Strategic fit: The alignment of the key account with the company’s strategic goals and objectives is crucial. Key accounts should contribute to the overall success of the organization and help it achieve its long-term vision.

Long-term viability: Key account managers evaluate the long-term viability and stability of potential key accounts. A stable and reliable partner is often preferred over one that may pose risks in the future.

Collaboration and communication: The willingness and ability of the key account to collaborate and communicate effectively with the company are important factors. Smooth communication and collaboration can lead to a more successful partnership.

It’s important to note that these criteria may be adapted or modified based on the specific goals and priorities of a company. Additionally, the criteria may evolve over time as market conditions, company objectives, and customer dynamics change. Effective key account selection is a dynamic process that requires ongoing evaluation and adjustment.

What is cross-functional collaboration and why is it important?

Cross-functional collaboration establishes trust between various teams within a business that are all working towards the same goal. Team members are encouraged to reach out to other departments with issues that are outside their realm of understanding, and this creates a more unified collaborative approach that leads to more timely solutions as they pertain to specific work goals. 

This collaborative process is important because it puts clients first and allows a business to focus on areas that need acknowledgment. It’s through teamwork that individuals working in separate areas are able to find assistance and build synergistic relationships that help to define problem areas and solve them in a timely manner. 

Without cross-functional collaboration, projects can stagnate, and this often leads to a loss of focus that can be detrimental to businesses that need to show progress and address the specific needs of their clients. 

Read more: How to Build a Sales Pipeline

What are the pros and cons associated with implementing KAM?

KAM allows businesses to take a strategic approach to managing and nurturing key accounts or high-value clients. Like any other business strategy, there are both pros and cons associated with its implementation.

• Resource intensive: Implementing KAM requires significant time and resources. It involves building relationships, conducting regular reviews, and tailoring solutions, which can be resource-intensive, particularly for smaller businesses.
• Long sales cycles: Managing key accounts often involves longer sales cycles, as decisions in larger organizations may take more time. This can affect the speed at which revenue is generated.
• Limited scalability: KAM is best suited for businesses with a manageable number of key accounts. For companies with a large and diverse customer base, scaling KAM may be challenging.
• Dependency on key personnel: Success in KAM often relies on skilled and dedicated key account managers. If these personnel leave the organization, it can disrupt the relationships with key accounts.

How do you determine if KAM is right for your business?

KAM is a powerful strategy that has the potential to increase revenue and sales for businesses that can demonstrate that they have the wherewithal to simultaneously work with larger clients.

While there are many advantages to adopting key account management for your business, it’s important to reflect on a few factors that should influence your decision-making process.

Adopting KAM is usually ideal for large-scale companies that have experience working with bigger clients. Since KAM can be very resource-intensive, smaller businesses are more likely to struggle to keep up with the demand of high-value clients.

If a business isn’t able to meet the requests of larger clients and attend to their needs, then KAM should only be considered when that business has demonstrated that it has the resources to properly manage larger accounts. 

Often, larger clients will require significantly more attention because of their size. Therefore, it’s important that a business has dedicated and reliable personnel to handle these accounts in a way that is mutually beneficial. If a business lacks key account managers who are up to the task, adopting KAM may not currently be in that company’s best interest.    

While implementing KAM can offer significant benefits in terms of revenue growth and customer satisfaction, it’s essential for businesses to carefully consider the associated challenges and invest in the necessary resources and strategies to mitigate potential risks.

About the author

Key account management (KAM) is a commonly used strategic approach typically reserved for large businesses that wish to locate and support high-value clientele in a way that is financially beneficial for all parties involved.

KAM matters because it focuses on building and maintaining strong relationships between businesses and their key clients. This in turn drives revenue, enhances client satisfaction, and allows those businesses the opportunity to gain a competitive edge in the market.

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The 7 Steps of a Key Account Management Plan

KAM in the Pharmaceutical industry  | In the first part of this article, we discussed the different types of strategic accounts you can encounter in the pharmaceutical industry, detailing the 5 key success factors for your KAM strategy . Today, we are going to dig deeper into the distinct steps of a successful Key Account Management plan.

How to implement a Key Account Management Plan

There are 7 steps that need to be followed for a successful Key Account Management action plan in the pharmaceutical industry :

1. ACCOUNTS’ ANALYSIS Get an overall understanding of each account and collect the right input to segment your accounts effectively. 

2. ACCOUNTS’ SEGMENTATION Segment your accounts according to the right dimensions and criteria. Then, identify which ones are most important in order to prioritize (Key / Strategic Accounts).

3. UNDERSTAND THE DECISION-MAKING UNIT Identify the key decision makers and influencers, evaluate the level of partnership you have with them. Identify their needs and their areas of interests. Then, identify/map working links among stakeholders.

4. DIAGNOSIS Perform a useful SWOT analysis and make your market diagnosis. 

5. SET OBJECTIVES Define realistic objectives for each of the key performance indicators measured in your analysis.

6. ACCOUNT TACTICAL PLAN Build an impactful account plan based on the previous steps, using all the resources you have at your disposal. Identify areas where additional resources could deliver greater feedback.

7. MONITORING/FOLLOW-UP Make sure your actions are well implemented and track key performance indicators to measure their impact. Book and update your plan accordingly.

How to measure your KAM plan's ROI

Typically there are some KPIs usually predefined by top management in line with your company’s strategy. Many companies use the Win-to-Lose ratio , Formulary Status, Penetration index and Revenue-to-Profit ratio. It is very important to always involve the account / customer into the measurement process using satisfaction questionnaire, improvement areas analysis and other measurable items.

In the end, financial data are always the key metrics and should be easily captured from the accounting system and analyzed from an ROI standpoint, as well as from a customer satisfaction perspective. The simple sum of inputs (investments) and outputs (net sales) together with your updated KAM Business Plan / Action planning will help drive successful long term business.

The ultimate goal of a Key Account Manager is to create a mutual value zone where both parties benefit from their collaboration and their relationship grows stronger and stronger. Identifying such opportunities that withhold a real potential of mutual value creation requires KAMs with innate understanding of what healthcare stakeholders expect from a pharmaceutical company, combined with an intuitive sense for business.

For Key Account Managers to be successful, a culture of openness and transparency is needed between the pharmaceutical company and the healthcare providers. Strategic Accounts Management requires fundamental organizational changes.

Massimiliano Nazionale, Commercial Excellence Senior Manager EMEA at Celgene said: “ It’s a program, not just a one-off initiative, it’s a long-term cultural change. You have to analyze the external environment and also the internal scenario within the organization. Then identify the opportunities and the challenges, and by linking these to your capabilities, you can focus on the priorities and on the change you want to achieve to be successful. ”

What makes the Actando approach so different?

Our blended learning approach seeks to maximize learning retention by combining in-class simulations-based courses with eLearnings, assessments and implementation tools. This learning methodology has proven to facilitate immediate understanding and mindset change, in a way that allows the flexibility required in today’s busy corporate environment.

Our Key Account Management program teaches you how to build and implement an account plan . It follows the Key Account Planning Process that maximizes impact with an optimal return on investment. Participants practice this process step by step using the impact Key Account Management simulation/serious game. If you want to learn more, download our detailed Key Account Management brochure by clicking the button below:

Key Take Aways

• KAM is the way you operate your business: it’s a business model, not a sales model.
• Not every account needs a KAM approach at any time: it is important to identify, segment and prioritize customers.
• The number of KAMs differs from the number of sales representatives. With KAMs, some areas have none, other areas have several.
• KAM is about building long-term strategic partnerships with the right types of organizations and the right people in these organizations.
• KAM is more than hitting sales targets, it’s about reaching the business objectives over the next five years and maintaining it.
• KAMs need to work with brand teams to understand the patient’s journey, and then map across key decisions and who will be making those decisions.
• KAM is about being a voice back into the organization.
• KAMs are the conductors of their environment: they know who the right people are and they know what’s needed and when it’s needed.
• KAMs need to ensure they have the proper knowledge and understanding of different company functions, and know when they need their colleagues’ expertise.
• The pharmaceutical industry needs to change from brand-centric to customer-centric thinking.
• Understanding customer needs and providing appropriate support is key.
• It is all about building relationships that can grow into a strong partnership.
• All programs should be evaluated and customer feedback should be incorporated into future strategies.

  The Actando Consulting Team

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Crash course in key account management: How to improve your KAM strategy

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What is key account management?

The strategic approach companies take to manage and grow its most important customers. By implementing a KAM strategy, you create opportunities for both you and your clients to sustain and grow your businesses—as well as opportunities to bring in more revenue.

Every organization has a different definition of key account management (KAM). In general, the term refers to the strategic approach companies take to manage and grow its most important customers, but the way each company determines who their key customers are, how to approach them, and what they’d like to gain will change dramatically.

If you haven’t created a key account sales strategy specifically for your business and your clients—or if you are looking for ways to improve your current key account management process—take a look at our tips below.

Advantages of key account management

As we stated previously, key account management is the approach a company or salesperson takes to manage and grow an organization’s most important accounts. The ultimate purpose of KAM is to develop long-term, mutually beneficial relationships with specific businesses in order to meet strategic goals and optimize value in both companies.

Why does your company need a key account sales strategy? By implementing a KAM strategy, you create opportunities for both you and your clients to sustain and grow your businesses—as well as opportunities to bring in more revenue. A solid KAM process gives you the opportunity to not only create a stronger relationship with valued clients but also to mitigate competition, as you’ll have a strong enough relationship to withstand almost anything the competition can throw at you.

Additionally, by having a key account sales strategy in place, you can:  

• Maximize sales velocity.
• Increase the average size of sales deals.
• Boost customer loyalty.
• Become valued partners to your clients.
• Develop and improve business relationships.
• Generate awareness for your company.
• Report pertinent data.

4 ways to improve your key account management process

Whether you have your process nailed down or are just starting to use key account management, keep these best practices in mind to improve your overall strategy.

1. Choose your key accounts carefully

You can’t choose just any of your clients as key accounts. You’re going to spend a lot of time and company resources on this account, so choose an account you think will significantly benefit your company and deliver a large amount of revenue. This process may involve researching your client's current business plan, objectives, and overall financial health.

When researching your clients, pay close attention to the clients who are more likely to grow with you in the future or have been the most consistent and loyal. If you’re unsure about an account, ask yourself, “If we lost this account, how difficult would it be to fill the revenue gap?” If filling that revenue gap would be almost impossible, then that account should be designated as a key account.

As part of the qualification process, you can use Lucidchart to create a profit matrix and determine which clients would be the most profitable to invest in.

2. Prioritize your key accounts

Once you have determined which accounts you should focus on, you should prioritize them based on potential profit and aligned interests. Use the matrix below to determine the type of key account management that will fit each client.

3. Become an expert on the account members

As part of your KAM strategy, you’ll want to ensure that you have a firm grasp on the key players within an account. Early on, you’ll want to know who the strong influencers and potential buyers are in order to optimize your time. And don’t limit yourself to just one point of contact within the business—nothing puts an account at greater risk than having just one contact. Studies show that businesses rarely sell to just one individual; rather, they sell to a group of decision makers who hold different positions throughout their entire company. Part of a strong key account sales strategy should involve contacting each of these decision makers and discussing the benefits of your solution.

Your contact list can get pretty long—and complicated. To keep your contacts organized, build out an influencer map. This visual will help you figure out whom to talk to, where they fit in the company hierarchy, and with whom you should align to improve your business relationship.

4. Add value through insight

As previously mentioned, one of the primary objectives of key account management is to build lasting relationships that benefit both your company and the business. Strengthen your relationship by showing how you can add value to your client’s company. Adding value can happen in various ways, such as saving the company money, bringing in more revenue, managing risk, mitigating competition, and building deeper relationships with account members.

As you continue to invest in the success of your partners, you’ll help each other to add innovation and value, which ultimately results in both you and your clients becoming deeply invested in each other’s future. When you develop this kind of partnership, both parties have a better chance at success.

Learn how account maps can help you visualize and manage key accounts.

Lucidchart, a cloud-based intelligent diagramming application, is a core component of Lucid Software's Visual Collaboration Suite. This intuitive, cloud-based solution empowers teams to collaborate in real-time to build flowcharts, mockups, UML diagrams, customer journey maps, and more. Lucidchart propels teams forward to build the future faster. Lucid is proud to serve top businesses around the world, including customers such as Google, GE, and NBC Universal, and 99% of the Fortune 500. Lucid partners with industry leaders, including Google, Atlassian, and Microsoft. Since its founding, Lucid has received numerous awards for its products, business, and workplace culture. For more information, visit lucidchart.com.

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What Is a Key Account Plan, and How Does it Affect Your Bottom Line?

No matter how long you’ve been doing business, everyone is likely familiar with this fundamental truth — your current customers are your most valuable sales opportunities.

The probability of selling to an existing customer is between 60-70%, compared to just 5-20% of selling to a new customer. 

So what does this mean for modern business? There is a direct link between the exponential growth of your business and healthy relationships with your clients, and when you can prioritize those key relationships, your bottom line will be impacted positively.  

Effective account management relies on technology. We're living and working in a very technical age, and any department or industry that doesn't keep up with trends in tech will be left behind. 

B2B companies should consider creating a key account plan in their quest to develop an effective key account management strategy. Without it, account managers can't create the impression they want on their clients and may end up losing them. 

What Is A Key Account Plan?

Before you can understand what key account planning is, you need to know your key accounts. Key accounts are the most valuable customers your company has. These are the 20% that are responsible for 80% of your profits. It's not just about direct revenue; these clients refer new prospects to your group and give your credibility on their platforms. 

A key account plan is your guiding star to pleasing these prized clients. It is the map that shows where the customer is today, where they want to go in the future, and what you're going to do to get them there. Expertly crafted key account plans are critical functions in any key account management department. 

The Key Account Planning Process

For moderate to big projects, it is a process that takes around two hours to create and a month to maintain. The following steps highlight the key account planning process:

• Account overview. This is the first step, and here you get to define important information concerning your client that's relevant to the account plan.
• Objectives. Highlighting objectives provides insight into the wants of your clients and will effectively develop a yardstick that measures your clients' successes and triumphs
• Solution. The customers’ objectives are like questions, with the solutions being the answers. Identify the potential solutions for your clients' wants. 
• Action plan. Have a course of action ready and note down the steps it will take to reach your destination, who is responsible for each step, and the timeline for task completion. Make sure to capture all the sub-tasks if the project plan has many moving parts.  
• Change management. Here you will need to have the foresight to judge whether the outcome of your action plan is positive or negative. Use Kurt Lewin's Force Field Analysis here. 

Sum up any possible positive or negative consequences, with each pro and con having a value assigned to it. If the value is zero or the forces against change are greater than those for change, your plan is likely to fail. If, on the other hand, the forces for change are greater, then the reverse is true.

• Implementation. Here is where you present the final plan to the client. They will need to agree to the aims, action plan, task owners, due dates, the plan's format, how it will be shared, and how often it will be updated.
• Review. You will have to decide how many times to review the overall key account plan. Things change with time, and you will have to be keen and flexible enough to react and adapt to these shifts. Depending on the sheer scale of your plan and project, meetings can be held bi-weekly, monthly, or quarterly.  

How Account Planning Affects Your Bottom Line

Key account management does more than just make your clients happy — when done correctly, it drives revenue, builds long-lasting relationships, and creates referrals. Key accounts spend 33% more than the market average, making them an invaluable asset to your revenue-scaling efforts.  

In an article published by the Harvard Business Review , it was stated that within a few years of the introduction of key account management programs, customer satisfaction increased by 20%. This loyalty translated into a 15% increase in profits and revenue. What's even more interesting to note is that programs that have been in place for more than five years have double these results .

While a lot of personal time is invested on the key accounts (the 20% group), what happens to the remaining 80% of client accounts? They need attention as well. 

To handle all your customers without neglecting any and not overworking your account managers, you need to incorporate new software into your tech stack. Automated processes and systems improve efficiency and ensure that all clients are receiving the attention they deserve.

You will need software that drives organic growth in all accounts and, more importantly,  one that provides unmatched insight into key accounts. Kapta has the software to do all this and more. 

Its key account management system is reliable and helps you relate to clients better while measuring the stats that matter so that you can act effectively and fast for their benefit.

Upgrade Your Key Account Planning

Today, key account planning faces two major challenges. First, it has to keep up with technological trends that transform the account management departments and strategies. Second, the plan created needs to match the outcomes required by the clients and their businesses. 

The overall progress — i.e. the gains, losses, and other revenue metrics measured — need to be considered over a period of time. Both these challenges can be negated with the right toolset. 

Kapta has key account management software available to build and sustain relationships with all your core clients. Instead of holding account planning strategy meetings every year or ignoring them altogether, invest in tools that make your work easier and better. 

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Personal Finance

What do you need to open a bank account.

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Having a bank account can make your financial life easier. When you need to open one, you've got options, including checking , savings , money market , and certificate of deposit (CD ) accounts. You also have a choice of financial institutions, including a traditional brick-and-mortar bank or credit union or an online financial institution.. To set up any account you'll need to provide personal information to verify your identity. A minimum deposit amount to fund your new account is also often required.

Most banks will tell you on their website exactly what they need from you. Getting organized beforehand can make the account opening process easier.

4 Requirements to open a bank account

1. identification.

Banks have to be able to verify that you are who you say you are when opening a new account. This usually means providing some type of photo identification.

Examples of acceptable photo ID to open a bank account include:

• Driver's license or state ID card.
• Valid passport.
• Military or veteran's ID.

Banks can also accept other forms of ID, including a Social Security card, birth certificate, employer ID, student ID, or pay stubs.

If you're not a U.S. citizen, you may be able to offer a U.S. employment authorization card or permanent resident card in place of a driver's license, state ID, or passport. All applicants should check with the bank to find out exactly which types of identification are accepted.

2. Social Security number

Banks may ask for your Social Security number to open a new account. If you haven't memorized it, you can find it printed on your physical Social Security card.

You can order a copy of this card online from the Social Security Administration if you have lost yours. You'll need to be able to verify your identity using a driver's license or state ID to request a new card.

It's possible to get a bank account without a Social Security number if you have an individual taxpayer identification number (ITIN) . You can apply for one online through the Internal Revenue Service (IRS).

If you don't have a Social Security number or an ITIN, you'll need to check to see if the bank allows you to submit other forms of ID. For example, you might be able to use your passport or, if you’re a foreign citizen, a photo ID that was issued by your government..

3. Proof of address

Most banks require proof of residence to open a bank account. This takes the form of a document showing an address that matches up with what's listed on your ID.

The kinds of documents you can offer as proof of residence usually include :

• Utility bills in your name.
• Mortgage statements in your name.
• Bank or credit card statements in your name.

If you rent, you might be able to show a copy of your rent or lease agreement as proof of residence.

4. Minimum deposit

Once you've verified your ID and address with the bank, the last step is making a minimum deposit. Requirements can vary by bank and the type of account. For example, you might need $1,000 to open a CD at a brick-and-mortar bank, but an online bank might allow you to open a high yield savings account with as little as $1. Sometimes there is no minimum opening deposit required.

If you're opening a new bank account that has no minimum deposit requirement, check the fine print. You might need to fund your account within a certain number of days to avoid having it closed.

How you make your minimum deposit can depend on how you're opening the account. For example, if you're opening a bank account in person, you may be able to deposit cash or a check.

If you're opening a bank account online, you could link an external account to deposit funds via ACH transfer . To do this your new bank will need the following information:

• Routing number for the bank that holds the account.
• Account number for the account from which you plan to transfer funds.

Some online banks may give you the option to mail in a check to make your first deposit or add money through remote check deposit. Either one may be preferable if you're opening a new account and have no other accounts you can link.

Where should I open a bank account?

Deciding where to open a bank account usually hinges on the features and benefits you want, as well as the kind of account access you prefer. You have two main choices: traditional brick-and-mortar banks and credit unions or online banks.

With the former you get the benefit of being able to bank in person. If you need to deposit cash, get a certified check, or ask a question, you can head to a local branch.

However, traditional banks and credit unions may charge more fees than online financial institutions, which also tend to offer higher interest rates on deposit accounts than the brick-and-mortar variety. This is a plus if you're looking for a high-yield savings, money market, or CD account. Online banks can also offer better checking account options, including interest checking and rewards checking .

Making a list of must-have and nice-to-have features and benefits can help you narrow down your choices.

TIME Stamp: When you're ready to open a bank account, it helps to be prepared

A bank account can make it easier to manage your money by serving as a vehicle for paying bills and getting cash when you need it, whether from a teller or at an ATM. An interest-bearing high-yield savings account, money market account, or CD can even help you get a step closer to your financial goals. Knowing what you'll need to open one can prevent you from hitting any snags when you're ready to get a new account up and running.

Frequently asked questions (FAQ)

How long does it take to open a bank account.

If you are opening a bank account online and have already gathered all of the documentation you'll need, then the account-opening process may take 10 minutes or less. Opening a bank account in person can take a little longer, especially if you need to wait for a banker to help you or don't have all of the documents required.

Can I open a bank account without ID papers?

Whether you can get a bank account without ID papers will depend on your situation and the bank's requirements. It's difficult to open a bank account without some form of ID, whether that be a driver's license, state ID, permanent resident card, or birth certificate. You may need to apply for an ITIN or look for a bank that has less stringent paperwork requirements for opening a new account.

What do you need to open a bank account if you’re under 18?

If you're under 18 and want to open a bank account, you’ll need the consent of an adult, usually a parent or legal guardian, and they will be the account owner. Once you turn 18 you can get a bank account in your own name by yourself..

How can I open a bank account without a Social Security number?

It's possible to open a bank account without a Social Security number if you have other forms of ID that a bank or credit union will accept. These can include an ITIN, a birth certificate, a valid passport, or a permanent resident card. Contact the bank and ask for confirmation of which forms of ID are accepted.

How much money do you have to have to start a bank account?

The minimum opening deposit for a new bank account depends on the bank. Traditional banks and credit unions may require $5, $25, $50, or even more to open a new checking or savings account. The amounts are generally higher for money market and CD accounts. Online banks may set the bar lower, asking as little as $1 to open a checking or savings account.

Some banks even have no minimum deposit on their accounts. However, many of these will peremptorily close an empty account after a certain time period.

Can you open a bank account without proof of income?

Proof of income usually isn't a requirement to open a bank account. The only time you might need to give your bank proof of income is if you're applying for a loan or line of credit. However, you may need to provide pay stubs or tax forms to establish and verify your identity if you don't have other forms of ID you can offer.

The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.

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How To Open a Business Bank Account Online (2024 Guide)

Erin Quinn is a freelance writer and editor with a background in education, marketing, and non-profit administration. Erin’s first passion is communication and making difficult topics easy to understand. She loves to “nerd out” on personal finance topics and break all the cultural rules about discussing money.

When she isn’t copywriting, she is both working and volunteering in local non-profits to benefit school kids of all ages. As a military spouse, Erin loves getting to know whatever locale her family is in, especially if food is involved!

David Gregory is a sharp-eyed content editor with more than a decade of experience in the financial services industry. Before that, he worked as a child and family therapist until his love of adventure caused him to quit his job, give away everything he owned and head off to Asia. David spent years working and traveling through numerous countries before returning home with his wife and two kids in tow. His love of reading led him to seek out training at UC San Diego to become an editor, and he has been working as an editor ever since. When he’s not working, he’s either reading a book, riding his bicycle or playing a board game with his kids (and sometimes with his wife).

You can set up a business bank account completely online with a few simple steps.

Key Takeaways

• A business bank account is an ideal way to separate your business and personal finances.
• Business bank accounts can be set up entirely online.
• Consider your business’s needs and research fees and features of each financial institution before beginning the application process.
• Before you begin, gather the necessary documents in electronic format to facilitate a smooth and efficient process. 

Whether you are a small business owner just starting, an individual contractor or a large corporation, business bank accounts can help meet your unique needs. These accounts offer several benefits such as separating business and personal finances, streamlining accounting, managing risk for personal liability and assisting with regulatory compliance. 

Opening a business account online is a simple process if you are prepared with the necessary documents and information.

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Why You Can Trust The MarketWatch Guides Team

Personal banking is a big financial decision, especially with the number of product options and rates available in the market. To help you make the best choices possible, we at the MarketWatch Guides team are dedicated to providing you with a comprehensive view of the best banks, credit unions and financial technology products available in the United States. Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates and terms.

Learn more about our methodology and editorial guidelines .

Opening a Business Bank Account Online

Use this step-by-step guide to understand the process of opening a business account online. 

Step 1: Research Online Banks and Compare Account Options

Start by researching accounts at various financial institutions to find one that suits your business needs. Just as there are personal accounts, there are business checking accounts and business savings accounts. 

Consider account fees , transaction limits, wire transfer fees, online banking features and customer support. Some accounts may offer interest on your balance, so look at the annual percent yield (APY) if the account has one.

Also, you should make sure the bank is a member of the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration) so your money will be insured and safe. 

Step 2: Prepare Required Documents and Information

You’ll need the following documents for your online business bank account application: 

• Business registration documents : These may include your articles of incorporation, business license or certificate of formation.
• Employer Identification Number (EIN) or Social Security number (SSN) : You need an EIN or SSN to identify your business for tax purposes. If your business has employees or multiple owners, you will need an EIN. If you’re a sole proprietor, you can use your SSN.
• Personal Identification Documents (ID) : Anyone with access to your accounts, such as owners, partners and authorized signers, should be prepared to provide a government-issued ID such as a driver’s license or passport.
• Proof of business address : You will need a document that confirms the physical location of your business. If the business operates from a home address, check with the bank about its home-based business policies.
• Business license or permits : Not every business requires a license or permit, but if your industry is regulated by a licensing or permitting board, be sure to have proof of your authorization. 

To ensure a smooth application process, create a checklist of the required documents specific to your chosen bank’s application.

Step 3: Initiate the Application Process

Go to the website of the bank you’ve chosen. Look for the option to “Apply Now” or “Open an Account” under the Business Accounts section, and click on it to begin the application process. 

Be sure to complete the online application with accurate information. You’ll likely need to provide details about your business such as its legal name, address, type of business, industry and anticipated account activity. 

Step 4: Provide Necessary Business and Personal Information

Scan or take clear photos of the necessary documents and upload them as instructed. Make sure the documents meet the bank’s requirements for format and file size.

Step 5: Review and Submit Your Application

After reviewing and agreeing to the bank’s terms, submit your application electronically. Some banks may require a small opening deposit. The bank will review your application, and it may contact you for additional information or verification if needed. 

Step 6: Set Up Your Account and Start Banking

Upon approval, you’ll receive confirmation of your new business account. The bank will provide instructions for setting up online banking access, ordering checks and downloading the mobile app. If your account comes with a business debit card or credit card, you’ll receive them in the mail — follow the instructions provided to activate them.

Once your account is set up, you can start using it to receive payments, make purchases, pay bills and manage your business finances.

Benefits of a Business Banking Account

While it may not seem necessary to open a business bank account, especially if you are a single proprietor or a small business owner, there are good reasons to do so.

• Protect yourself: In the case of a lawsuit, it is best to have your personal assets separate and therefore protected.
• Simplify taxes: If all of your business expenses and dealings are in one easy-to-find place, it makes the process much smoother when dealing with the Internal Revenue Service.
• Build credit: In the long term, having a business checking account is the first step toward building credit as a business. That can be beneficial down the line if you need to take out a small business loan or want a business credit card.

Tips for Selecting the Right Online Bank

When selecting an online bank for your business, consider the following factors:

• Account fees and limitations: Your business checking account may have a minimum balance requirement, monthly maintenance fee, transaction fees, overdraft fees or ATM fees. You may also see transaction limits that cap the number of withdrawals and deposits you can make within a period.
• Account features and perks: Does it offer a mobile banking app with account alerts, customizable reporting tools and security measures like multi-factor authentication? Can you set up bill pay or ACH transfers to automate some of your cash flow? 
• Integrations with your business tools: Check if you can integrate the account with the software you use for payment processing, payroll and accounting.
• Physical location or ATM capability: If you receive cash payments, you may also want to check that it’s convenient to make cash deposits. 
• Business lending solutions: If you think you may expand or need credit in the future, consider whether the online bank offers business loans, lines of credit or business credit cards. Evaluate the terms, interest rates, loan amounts and eligibility criteria for those credit products.
• Regulatory compliance record and financial stability: You should check the reputation of your chosen bank by reading reviews. You should also verify that the bank is insured by the Federal Deposit Insurance Corporation (FDIC).
• Customer support: Look for reviews or testimonials from other business customers to gauge the bank’s responsiveness and reliability in addressing customer inquiries or issues. Check what support channels it offers and if they meet your needs.

Common Pitfalls to Avoid

When completing an online application for a business bank account, avoid these common mistakes that could lead to delays or complications.

• Incomplete or inaccurate information: Ensure you have all the information needed to begin the application, both personal and for the business. Double-check spellings, addresses and numerical data to avoid errors that could lead to application rejection or processing delays.
• Ignoring eligibility: Learn the bank’s requirements, including business type, ownership structure, industry restrictions and minimum balance requirements. Double-check you meet these criteria before proceeding with the application.
• Skipping the review process: Take time to review all the information before applying. Verify that you’ve uploaded all the documents correctly and that you’ve filled out all the fields in the application form.

If you encounter roadblocks during the online application process, reach out to the bank’s customer support team for assistance. After applying, follow up with the bank to confirm receipt and inquire about the status of your application. Stay proactive in addressing any outstanding requirements or issues that arise during the processing period. 

The Bottom Line: Opening a Business Bank Account Online

Opening an account for your business allows you to separate your personal and business finances and conduct important business transactions swiftly and accurately. 

The process begins with thorough research and comparison of online banks to find the one that best suits your needs. You’ll want to consider account fees, transaction limits, customer service and online banking features.

FAQ: How To Open a Business Bank Account Online

Can i open a business bank account online if i have a sole proprietorship.

Yes, you’ll typically use your Social Security Number (SSN) as the taxpayer identification number for your business unless you’ve obtained an Employer Identification Number (EIN) from the IRS.

How long does it take to open a business bank account online?

The time it takes can vary depending on several factors, including the specific bank’s processes, the completeness and accuracy of the application and any additional verification requirements. In general, the timeline for opening a business bank account online typically ranges from a few days to a couple of weeks.

Can I open a business bank account online if my business is not yet registered?

In most cases, you will need to have your business registered before you can open a business bank account, whether you’re applying online or in person. Business registration provides the necessary legal documentation to establish the existence of your business, which banks typically require when opening a business account. An exception may be if you are operating as a sole proprietor.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

The rise and fall of Allbirds: The sneaker company whose stock went from IPO darling to trading below $1

• Allbirds was founded in 2015 and soared to prominence with its iconic wool sneaker.
• The company went public in November 2021. Shares rose 90% on the opening day of trading.
• Sales have since slowed significantly. The company reported a 14.7% decline in revenue for 2023.

Allbirds' struggles continue to mount.

The shoemaker reported another quarter of disappointing earnings in March, wrapping up a dismal fiscal year that saw a net loss of $152.5 million.

Then, in April, the company received notice that its stock is at risk of delisting from the Nasdaq exchange for trading below $1 for 30 consecutive days.

Here's a history of Allbirds and how it went from a buzzy sustainable footwear brand worn by tech bros and VCs to a company on the brink.

Tim Brown and Joey Zwillinger cofounded Allbirds in 2015 as a sustainable-footwear company

According to its initial filing with the SEC , Allbirds' mission was to "make better things in a better way, through nature." 

Zwillinger previously worked as a vice president of industrial products at a biotechnology company

Brown's background included serving as the vice-captain of New Zealand's soccer team.

Allbirds roared to life in 2016 with a Kickstarter campaign that hit its $30,000 goal in five days.

The company ended up raising nearly $120,000 to make a wool running shoe designed to make a lighter environmental impact than traditional athletic shoes.

In 2016, Allbirds received B Corp certification, a designation given to companies that work to advance environmental and social causes, and shareholder concerns.

For Allbirds, the designation codified, "how we take into account the impact our actions have on all of our stakeholders, including the environment, our flock of employees, communities, consumers, and investors."

In only its second year in business, Allbirds gained the title of world's most comfortable shoe.

Time magazine said Allbirds' hero product, the Wool Runner, was the "World's Most Comfortable Shoes."

By 2017, Allbirds, Warby Parker, and Casper were considered among the "DTC pioneers" shaking up their respective industries — sneakers, eyeglasses, and mattresses.

By 2018, direct-to-consumer business plans proliferated. In 2018, Inc. reported that more than 400 startups were trying to "become the next Warby Parker."

Allbirds sneakers became synonymous with Silicon Valley dressing

In August 2017, Allbirds got another shot of national publicity when The New York Times described Wool Runners as part of the Silicon Valley uniform.

A month later, Allbirds opened its first store,

The 1,450-square-foot store is located in New York City's Soho neighborhood. In 2022, the company operated 58 stores.

By 2020, Allbirds' popularity had spread well beyond Silicon Valley. President Barack Obama was spotted wearing Wool Runners repeatedly.

But the shoe started to fall out of favor with the trendsetters and the press, with GQ even lamenting the sight of Obama wearing them . "Can't someone send him a pair of Jordans?" the magazine wrote.

Allbirds launched the Dasher in 2020.

With the success of Wool Runners waning, Allbirds launched its first performance-running shoe, called the Dasher, in May 2020. Gear Patrol called it "shockingly good."

Also in 2020, Allbirds partnered with Adidas to make a low-carbon shoe, another sign of the company's willingness to disrupt industry norms.

Large footwear brands are typically reluctant to partner with one another. The shoe, called the Adizero x Allbirds 2.94 kg CO2e, had the lowest carbon footprint of any Adidas or Allbirds sneaker.

In August 2021, ahead of a public offering, Allbirds disclosed growing annual sales, but also mounting losses.

Sales increased from $193.7 million in 2019 to $219.3 million in 2020, but losses also increased , growing from $14.5 million in 2019 to $25.9 million in 2020. 

Allbirds went public in 2021.

A little more than 2,100 days after it launched its Kickstarter campaign, Allbirds went public on November 3, 2021. Shares soared 90% on the opening day of trading, CNBC reported, a sign of Wall Street's bullish outlook for the company.

Allbirds dropped claims about being the first "sustainable" IPO.

After the Securities and Exchange Commission objected, Allbirds dropped claims about being the first "sustainable" IPO, the Financia l Times reported in November 2021.

Allbirds launched wholesale in 2022.

Although it was launched as a direct-to-consumer company, in May 2022, Allbirds announced its first wholesale partners , Zalando and Public Lands, then Nordstrom — a signal that DTC sales would not be enough to get the company to profitability.

As Allbirds started to add wholesale partners, the backlash started to build against DTC companies.

"It's the de-DTC era," said Simeon Siegel, the managing director for equity research at BMO Capital Markets. Analysts, such as Siegel, said the benefits of direct sales were often overstated.

As DTC companies started to fall out of favor, and investors started to pay more attention to profitability, Allbirds stock started to drop.

Allbirds shares, which hit $28.64 on the company's first day of trading, had fallen to under $5 fewer than eight months later . Stock pickers said the company needed to expand beyond Wool Runners.

In 2022, Allbirds officially lost its novelty in Silicon Valley wardrobes.

Roughly five years after The New York Times christened Wool Runners part of the Silicon Valley uniform, The Wall Street Journal in December 2022 said that "tech bros" had moved on.

In March 2023, Allbirds shares plummeted 47% after a disastrous earnings report that included a $101 million annual loss.

On a call with stock analysts, executives announced a sweeping four-part reorganization , including slowing the pace of store openings, adding more wholesale partners , and working to "reignite product and brand." Co-CEO Joey Zwillinger also said some of the company's marketing veered too far away from what Allbirds consumers want, including marketing for the Tree Flyers, above, which focused on its technical-performance attributes.

Allbirds began to rethink its big bet on DTC.

As part of the reorganization plan, Zwillinger said the company was considering adding more wholesale partners . By then, the company's wholesale partners included Nordstrom, REI, Scheels, and Dick's.

In 2022, while still based in San Francisco, Allbirds quietly opened an office in Portland, Oregon, to take advantage of the city's talented-footwear workforce. Nike is based in a Portland suburb, and Adidas has its North American headquarters in the city.

Allbirds hired several Nike and Adidas veterans to run the office, including Ashley Comeaux, who spent more than 10 years at Nike before becoming Allbirds' vice president of product design.

In early 2023, Allbirds released a string of products designed and developed by Comeaux and her team, including Risers, Pacers, and SuperLights, which lack a Strobel board, a manufacturing innovation designed to reduce carbon emissions and improve comfort.

Risers and Pacers have already gotten strong reviews from Insider.  Although the new products have been well-received, shares of the company remain well below the $15 IPO price, trading for $1.23.

In March, Allbirds announced disappointing earnings and Zwillinger told analysts that the company had lost focus on its core.

Since then, the company has focused on its best-sellers, the Wool Runner and Tree Dasher, while it discontinued underperforming products like much of its apparel, the Wall Street Journal reported. 

In June, the company released what it said was the world's first carbon-negative shoe , which it calls the M0.0NSHOT.

In May, Allbirds announced a leadership shakeup, as co-founder Tim Brown said in an analyst call he would no longer be co-CEO of the company.

Brown said he would be stepping into the role of chief innovation officer of the company, leaving fellow co-founder Joey Zwillinger as the sole CEO of the company.

The company also laid off 21 employees globally in May, it said in a filing with the US Securities and Exchange Commission.

The shoe company generally had a disappointing start to 2023. The company reported a 13% decline in year-over-year revenue in the first quarter.

'As we've tried to expand and grow the brand, we created products that haven't quite met the mark,' Brown told The Wall Street Journal.

In a July article, Brown and Zwillinger told the Wall Street Journal that their attempts to appeal to customers younger than its 30- to 40-year-old base didn't go over well. The Tree Flyer was one of those attempts that missed the mark. 

The company reported second-quarter earnings were above expectations. Sales fell 10% compared to a projected 18%.  

"We laid out a road map for our strategic transformation back in March, and now two quarters into our work, we have gained traction and are solidly on track to drive toward profitability expectations," Zwillinger said in an August earnings call. 

In November, Allbirds released an updated version of its first Wool Runner.

The Wool Runner 2 has been updated with a new version of its SweetFoam midsole and improved durability, Retail Dive reported. 

Full-year earnings for 2023 were dismal indeed, with sales down 14.7% and a net loss of $152.5 million for the year.

The company also promoted COO Joe Vernachio to CEO, with Zwillinger stepping down to serve as a special advisor and remaining on the board of directors.

In April 2024, the company received notice that its stock faces possible delisting on the Nasdaq exchange. It has 180 days to improve the share price.

In a statement , Allbirds said its stock must trade above $1 for at least 10 consecutive days in the next six months in order to stay in Nasdaq's good graces.

Matthew Kish, Ben Tobin, and Jennifer Ortakales-Dawkins contributed to earlier versions of this article.

• Main content

Best Practices for the B2B Side of Key Account Management

Abhijit gangoli.

Co-Founder & Chief Executive Officer at DemandFarm

Focus on key accounts is a lot more important in the B2B sector, and for good reason: the complexity of B2B businesses demands efficiency, and handling a large roster of customers all of whom clamor for attention can stretch teams thin. B2B businesses rely on customer management heavily to keep a steady sales flow. While they focus on key accounts, the management strategy usually follows regular account management practices.

Based on the size and the products offered, vendor organizations can have multiple criteria for identifying key accounts, but it is important to understand the nuances of customer needs before embarking on a key account management process . Leaders of the organization can guide or collaborate on creating a plan for key accounts, with multiple departments – and implement practices that benefit both the customer and the vendor.

The business of key accounts

The first factor that pops up when ‘key’ accounts are mentioned, is revenue. Classifying customers based on the revenue share they bring to the organization is a common classification method, as any customer that drives a large chunk of revenue should be treated well. These key account contacts can also refer new prospects, because word of mouth carries a lot of weight when critical business functions are involved. Their endorsement can also lend credibility to the organization and its products, along with opportunities to learn, evolve and innovate.

The major focus should be on prioritizing the future of the partnership, instead of instant gains. Understanding parameters like recurring sales, customer’s lifetime value, scope of innovation and common growth, and shared goals can make the choice of key customers obvious. Collaboration between multiple teams is necessary to provide a strong support that successfully nurtures them. Re-evaluating the current sales process can shed light on how long-term relationships can be formed with key customers, and can reveal if the upselling potential of the product is a feasible option.

What does a successful key account manager do?

Providing training in strategic account management is the preferred option for 61% of organizations to achieve greater revenue and customer satisfaction. Training teams on understanding best account management practices , allows managers to determine what accounts can be termed ‘key’ ones and apply different tactics instead of focusing on closing a one-time deal. Strengthening ties and aligning with customer goals for the short and long term requires key account managers to think beyond the box. 

1. Making personal connections that focus on business might sound like an oxymoron, but strategic account managers with their in-depth customer knowledge can provide extremely personalized solutions to the problems faced by their customers. They can change their pitch sequence to address these issues, and convince customers on how the product is suited to fulfil their needs.

They can also pitch customizations and add-ons that customers can use to extract additional value from their operations. The understanding of accounts keeps teams to be proactive, anticipate customer needs, and stay up-to-date on industry trends. 

Having a personal equation also allows employees to alert and educate customers about potential changes. Customers nowadays want a partner who can guide them into understanding best practices and why they matter, so that they can focus on the core aspects of their job and not spending time on researching a tangential aspect of their task. Results show that customer satisfaction can lead to a bump of 20% and more in engagement , while improving revenue generation by more than 15%.

2. Tailoring solutions in the best way possible right from the moment of pitching, can allow managers to create customer-specific product plans and benefits. Showing the benefits of the product usage to the customers on a regular basis switches the focus of customers on to the extra value provided, can be even interested in upselling opportunities with the same product, or other offerings from the vendor. based on the needs of each account.

By tailoring the services to meet specific needs, the relationship can be elevated from buyer and seller to business partners. The big-picture view of key account management gives managers the freedom to fit relevant services in regular workflows of customer organization. The streamlining promotes confidence in the abilities of the solution provider, and interactions between both parties can take a consultation-based role.

3. Enabling decision making is essential for managing high-value accounts, which require time and resources of multiple teams and employees. Having a strong manager who can take calls that are in the interests of both parties and not just short-term gains, can drive operations smoothly.

People skills and clarity in communication are essential for key account managers who handle large accounts that have multiple client stakeholders. Organizations should also look into tools that help in structuring and analyzing data, so that managers can plan future strategies with certainty, and keep team members on track. 

Why can’t all customers become key accounts?

There’s a limit to key account management practices, and no matter how sophisticated a vendor’s processes are, some customer partnerships don’t develop past the transaction phase. Trying to convert such clients by assigning more resources, can only complicate matters – as it is really difficult to scale a client don from ‘key’ status, without losing it. Enthusiastic managers might be keen to designate the account they’ve just won as ‘key’, but leaders should have steps in place to negate such euphoric decisions.

Highlighting differences between one-off transactions and potential partnerships through various lenses can solve this issue, and also helps managers look at factors beyond revenue (which is very important, but not the only important factor).The ratio of revenue to cost for customers shows the current state, while determining potential to expand ensures future growth, and highlights any mismatches with product fit. Based on the trajectory, key account managers can look at upselling and cross-selling , and push their customers toward high value status.

Unlocking value from digital analytics

AI and ML (machine learning) have made further inroads into efficiency and usability, and they can help B2B account management practices evolve too. Implementing these solutions in the B2B sector can be quite seamless, as these models thrive on regular human support, and learn as they go. Integrating tech stacks can elevate the experience of key accounts, and frees up managers for problem-solving instead of looking for and providing information to key customers.

Better structured data

Without having to dedicate manpower to these processes, managers are able to focus on the long-term plan by letting technology drive data collection efforts. While digital analysis is crucial to successful key account management , the team needs to be trained to use it properly. Technology should be seen as a priority rather than an add-on to departments. If employees voice concerns about the implementation of this software, make sure to remind them of best practices and provide training as necessary.

Improve impact with personalized messages

Involve the negotiation of prices at the country level, offering worldwide support, and understanding the key procurement strategy of these clients.

The duties of a key account manager include developing customer relationships with worldwide branches and tracking revenue potential. Successful implementation of key account management should strengthen the customer relationship and provide a significant competitive advantage to the business.

Efficient reallocation of resources

Large customer accounts can be difficult to manage. There are often several decision-makers involved, with the services being used across multiple departments. Digital analytics help the account managers uncover opportunities for growth within these large organizations. Up-to-date data sets help keep the teams informed on the latest changes with clients. This allows managers to explore up-selling and cross-selling options and encourages timely outreach. requires strong ties with key customers and their internal stakeholders to ensure quality service.

Key account management is a hefty investment and needs to make sense for the business before it is implemented. Accounts with key potential have a few key characteristics to meet before reaching this level. Starting from earnings potential, managers can shortlist customers – and then consider if the costs of handling that customer adds any value to the system. This need not be monetary, as customers can help vendors in many ways – be it by word of mouth, enabling a learning culture, and others. 

Six best practices for B2B key account management

Organizations practicing key account management activities need to implement certain best practices, and focus on increasing customer loyalty. This allows them to uncover new growth opportunities, and improve efficiency and innovation in the sales and marketing teams.

1. Start with a dedicated manager, transition into a team

Instead of asking sales managers to take care of the needs of multiple customers, asking them to focus on one key client simplifies the command chain and makes it easy to delegate tasks among departments. Since managers are focused on handling all customer interactions, they can use the information they already have from various sources and strive to help with customer issues. Vision and mission of their key account should direct their communication style, and explains how the services provided can directly impact the issue under consideration.

The data collected during these phases can be chronicled and structured with specialized tools, and can increase overall productivity while strengthening key relationships. Key account managers who take broader roles have the time and data to be analytical and personable, and communicate clearly with customer representatives, even at C-levels. Rest of the team can catch up, and learn from the leaders – account management tools can also help in educating newer team members, and the learning is intuitive.

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2. ensure smooth interaction between departments.

Key account managers are not just responsible for managing high value customers, but the product roadmap/direction too. Right from the beginning when the account is transferred from sales to KAM teams, the focus should be on building trust. Establishing formal processes between the departments can keep directions clear, and allows for accounts to be organized strategically too.

Transitioning from sales to key account, should involve clear and detailed communication that includes contact changes, product details, what to expect, and other details that can differ from industry to industry or customer to customer. Updating this information on KAM tools as the process progresses, can build an up-to-date repository that can be used by any team member, set expectations, and create touchpoints.

3. Prepare for edge cases and rare needs

The only theory of generalization that holds true, is that there can’t be any generalization. Organizations operating in the same market can have processes that are 180-degree to each other, and that’s why it is essential for key account managers to become an expert about their customers. By in-depth analysis of customer goals and initiatives, managers can get to know the decision-makers and keep track of important stakeholders. They also have to understand industry trends, and keep tabs on current industry updates.

By conducting a needs assessment requirement, managers can discover pain points and find areas where the goals are aligned. When these match that of the customer, both parties are in a mutually beneficial partnership that propels both ahead.

4. Collaborate on a strategy roadmap

Once key customers are identified and engaged, managers should build strategies that suit the customer profile. With relevant inputs from the customer side, the strategy document can act as a roadmap, and can be reviewed/altered after reviews. These reviews should be consistent in their frequency, or teams run the risk of missing important occasions to update. This proposal can include creative solutions to customer problems, areas that can be made more efficient, processes that can be tuned, potential partnerships with other organizations, necessary resources, and more.

Establishing benchmarks makes it easy to track performance on long-term goals. The process of collaborating with the customer representatives might not be easy, but when done right – it gives customers a sense of contribution and can lead them to become a promoter within their organization.

5. Establish standards for effective communication

Standards bring a sense of normalcy to the whole process, and allows managers and customers to compare outputs to a meaningful figure. They also establish a regular communication routine, and the process of outlining schedules sets expectations for customers. IT also allows for a simplified monitoring of the account performance. Setting touchpoints, sending out meeting invites with a consistent frequency, following up, and updating customers on progress addresses necessary changes before they become issues.

When the vendor and the customer are on the same page, staying on schedule and fulfilling customer demands becomes easy – and helps customers to clear their queries and mention future needs as they arise. 

6. Compare performance to standards

Setting KPIs and performance standard s can show progress on key accounts, and establish benchmarks for success. Comparing on a regular basis also shows how customers are meeting their obligations to the vendor, and the process can be tweaked to ensure mutual long-term benefits to all parties involved. Evaluating such relationships on internal and external initiatives, helps teams to grab growth opportunities while optimizing high-return strategies.

The best practices identified by a vendor organization should be re-assessed, if either side is losing value. The main aim should be to keep the relationship mutually beneficial, and the basic tenets of the partnership need to be revisited if it isn’t the case.

Key takeaways

Starting key account management practices is a huge undertaking, but it comes with big rewards when handled correctly. Allocating resources, keeping departments informed on changes, and communicating clearly not only strengthens the relationship , but can lead to new business or new customer introductions too. Customer satisfaction and improved services are priority for businesses, and key accounts need the next level treatment.

With specialized KAM tools and collaboration, key account managers can make sure that the services offered are beneficial to all those who are involved. Adapting the product to suit the needs of customer accounts, can also give better insights on usage. Teams can use this information to modify products so that they serve customers better, and they can utilize automation and data analysis to free up resources or generate useful insights.

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About The Author

Co-Founder & Chief Executive Officer at DemandFarm, Abhijit Gangoli, is a seasoned entrepreneur with over two decades of experience in successfully building businesses in the Sales and Marketing domain for the B2B Tech industry. At DemandFarm, he focuses on business and sales strategy to drive growth and innovation in the company. His past venture, DemandShore, now a part of Spiceworks Ziff Davis, is an omnichannel B2B performance marketing company. At DemandShore, he also successfully conceptualized and launched martechadvisor.com - one of the leading digital media publications in the marketing technology space globally.

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