Magnifying the Minute-A KAM Operationalization Perspective

The significance of developing long-term mutually beneficial business relationships with strategically important customers in B2B marketing has been extensively acknowledged in literature (e.g., Spiros Gounaris & Nektarios Tzempelikos 2013). These key customers are very minute in number, but have potential to contribute major portion of firm's overall sales; key customers always look for unique mix of benefits. It is therefore inevitable for the firm to magnify its marketing viewpoint towards key customers and meet their unmet and un-expressed needs proactively. The success of the KAM program predominantly depends on its effective operationalization and implementation which leads to positive financial and non financial performance outcomes.

The purpose of this study is to develop and statistically evaluate a theoretical model of KAM operationalization and its impact on KAM effectiveness.

Review of literature was carried out to identify the factors influencing the operationalization and implementation of KAM program; subsequently a conceptual model was developed comprising constructs such as: relationship excellence [satisfaction, trust and commitment], relational competence [information sharing, conflict resolution], leading to financial performance [sales, profitability, market share, ROI], non-financial performance [reference value, know-how development, process efficiency, internal communication]; data was collected from 104 firms from pharmaceuticals sector.

Outcomes put forward that effectual KAM Operationalization leads to positive financial as well as non-financial performance outcomes. Gleanings also substantiate the intervening task of relationship excellence and relational competence in the formation of long term mutually beneficial business relationship with strategically important customers.

The present study is focused only on one sector [pharmaceuticals] and is cross sectional in nature. Prospect longitudinal studies across multiple sectors will augment the insights of relationship among variables.

Firms which adopt Effectual KAM Operationalization as daily routine are likely to attain better business performance both financial and non-financial.

Firms must transform from their conventional sales management approach toward KAM for deriving significant benefits from strategic customer relationships.

This research work provides statistical validation and all-inclusive gauge of KAM operationalization. Study clearly demarcates the management of relationship amongst strategically important customers when compared to regular customers.