In the account management field, key performance indicators (KPI) and metrics are everything. You use them to track how well a relationship is growing; you use them to track the revenue a company is generating, and salespeople rely on them as a means of assessing their performance among the group.
That being said, do you track and manage key account manager performance using metrics? If not, you should, and if you are, are you using the right metrics? In today’s post, we’ll take a look at the primary metrics you should use to measure a key account manager’s performance both in the short and long-term. With these metrics in mind and a powerful platform to track them, you can make sure your team is on its A-Game year-round!
Customer Lifetime Value
A key account manager’s number one goal should be to provide their customers with lifetime value. This means that their customers feel like the heroes of their organization and your key account managers are their trusted business advisors. How do they achieve this title of “trusted advisor”? By bringing customers tangible benefits that they can point to on a spreadsheet and say “Look! I helped you generate this revenue.”
If your key account managers aren’t providing tangible value to their client’s over time, they aren’t performing their job to the fullest. As your key account managers help their accounts generate more revenue and grow their wealth, they will be worth much more to your organization throughout the life of the account.
Are your clients proud to mention your company in public and on the record? Would they recommend you to their friends in other companies? The answer should always be a resounding “yes” without pause or hesitation. If not, your key account managers aren’t performing to their fullest.
One of the core principles of continuous relationship management is building, nourishing, and maintaining a strong, mutually-beneficial relationship. If your team of key account managers is following this strategy to a tee in their daily work, customers should see success at every step of the way. If you’re finding success when partnering with an organization, wouldn’t you want to tell everyone you know about them? Coach your team to focus on customer success first and foremost, and the rest will soon follow.
The customer satisfaction score (CSAT) is one of the crucial ways to measure the health of your customers and is a great tool to measure the performance of key account managers as well. Typically, most organizations use customized surveys to gauge a customer’s satisfaction with their company. You can conduct these surveys either via phone, email or through your account management platform.
You can use a few different methodologies to score your customers’ satisfaction, but many in the industry are starting to favor Net Promoter Score (NPS) over others these days. It relies heavily on one question, the ultimate question: How likely are you to recommend our services/products to a friend or colleague?
As we mentioned before, recommendations are important in the account management field. If your key account managers can perform to their fullest and continue to bring in new accounts, your organization will be set up for success over the long term. Check out the answers to customer satisfaction surveys, and determine which key account managers receive the highest scores and figure out what they’re doing right that others could learn from.
If your key account managers are accurately keeping track of their account’s goals with measurable KPIs, you can use those metrics to track the account manager’s performance as well. After each Voice of Customer interview, your key account managers should come away with a new insight into the customer’s short and long-term goals. Over time, using a robust KAM platform, they should be able to track and manage these goals. Are they helping their customers reach them?
By following a continuous success strategy, your key account managers should be on track to help their client’s smash through their quarterly and yearly goals with ease. If you’re using a platform like Kapta, you should take a look at the progress your key account managers have made in helping their clients achieve continuous success. If they’re struggling, something isn’t going quite right, and you must get to the bottom of it.
If you want your organization to remain successful for years to come, growth is probably your top priority. That being said, are you checking to see which key account managers are growing their customers the most? With each new customer, you’re adding another revenue stream to your organization. However, with the 80/20 principle in mind, if you can focus on growing your most successful clients, you’ll see much greater return with minimal effort to recruit and onboard new clients.
Set up a system to check and measure the performance of your account managers based on the growth they bring your clients and organizations. If they can strive to grow their accounts each year rather than just maintaining them, your bottom line will see a tremendous boost.
How much time do your key account managers spend working with your customers? Customer goals, expectations, and problems can change fairly rapidly, and if your account managers spend more time working with spreadsheets instead of the customers, you could be blindsided. Make sure that your team is in constant contact with their customers using continuous relationship management techniques.
If you’re still relying on quarterly business reviews to get in touch with accounts, your key account managers might be caught off guard. You want account managers that are proactive in ensuring their customer’s success; not waiting for emergencies every 90 days.
With the right set of metrics, you can better manage your key account managers. Make sure that they are adding value to your clients, promoting client growth, and bringing in long-term revenue streams to your organization. With these metrics in mind, creating a strategy for long-term growth and success should be much easier than before. If you would like to see how Kapta can help you in your account management efforts moving forward, click here to schedule your free demo today.