Proactive and reactive: drivers for key account management programmes

Abstract

Purpose

Key account management (KAM) programmes are a way for companies to develop existing relationships and increase sales, thus being proactive and searching for opportunities (which is often expected of KAM). It is also a way to meet changing customer demands arising from changes in purchasing strategy, buyers' mergers and acquisitions and the search for synergies in order to reduce costs. The purpose of this article is to analyse different key account management programmes on how they manage the sales process complexity and customer expectations.

Design/methodology/approach

The paper draws on qualitative data collected during a field study of ABB and six of their major customers, based on annual or biannual interviews with 50 individuals within ABB from 1996 to 2006 and three to ten individuals from each of the customers. Interviewees included corporate managers, key account managers and sales personnel/project managers. The customers involved in the study belonged to mining, automotive, process equipment manufacture, building technology, energy production and telecommunication sectors.

Findings

In this study three different programmes are identified and analysed: the proactive programme – which is driven by sales opportunity; the reactive programme – which is driven by customer demands; and the organisation‐based programme – which is driven by the belief in customer‐centric organisational units.

Practical implications

The paper identifies sales aspects (complexities) of KAM programmes that are handled in different ways by different types of programmes.

Originality/value

With an empirical base the paper provides a basis for understanding the reasons behind the establishment of several KAM programmes in the same corporation.

Citation

Brehmer, P. and Rehme, J. (2009), "Proactive and reactive: drivers for key account management programmes", European Journal of Marketing, Vol. 43 No. 7/8, pp. 961-984. https://doi.org/10.1108/03090560910961470