What are Key Accounts?
Simply put, key accounts are clients that represent a long-term strategic priority for your company. They are not just big buyers of your products or services key accounts are partners in your business. You are expected to offer them higher levels of service in exchange for more reliable streams of business. In fact, though, key accounts often do completely different types of business with your company than your typical clients.
It is not unusual for your company and key accounts to invest together in research projects, new product developments or facilities. Many companies offer their key accounts financial incentives or advertising & marketing funds. Some key account relationships involve locating staff members at each others offices or facilities.

What is a Key Accounts Manager?
A Key Accounts Manager is a sales professional who has additional authority and responsibility to build and maintain relationships with strategically important clients. Key accounts managers often take on the role of a consultant, working with clients to solve problems and focus your companys knowledge resources on helping your key account improve his business. Key accounts managers often do not push specific products, but rather work to align the interests and coordinate the operations of both organizations. One of the key duties of a key accounts manager is to insure transparency between the two companies. You will tell them much more about your operation than typical clients know, and they should give you much more information about their business and future plans.
A key accounts manager is expected to have an intimate knowledge of his clients business and operations, and be familiar with a wide range of managers and personnel. You are the main representative of your company with this important client, and you should be just as comfortable sitting down to discuss business issues with their CEO as with one of their factory workers or delivery men.

What are the differences between managing a Key Account and regular sales?

• A key accounts manager must be ready to take on the role of partner and chief representative, so he is usually more experienced and more knowledgeable than ordinary sales reps. Key accounts managers often find themselves negotiating or discussing crucial business issues with General Managers, Chief Financial Officers and Operating Officers.
• Key accounts managers have a more intense relationship than other salespeople, and the degree of responsibility is often quite high. As a result, they tend to have fewer client relationships than other types of sales professionals. They see their position as a provider and collector of information and not a promoter of specific products or services.
• Another big difference may be the way key accounts managers are compensated. Because they are engaged in many non-sales activities with their client, they are less likely to be paid in the form of sales commissions.
• Key accounts management is usually considered a significant step on the road to senior management. The position is very visible within your own company, and your performance will be monitored carefully. There is a good chance your own top management will be familiar with your clients senior people, and your activities will be discussed at the C level (as in CEO or CFO).
  

How can I be a successful Key Accounts manager?
What holds together a good Key Accounts relationship? Not glue, but TAPE.

Transparency They have to understand your operating process, and you have to understand theirs. Make certain you understand your limits and your companys standard procedures as far as sharing information. One of the main differences between a key account and a standard client is the degree of information sharing.

Advocacy Your job with a key account is not to promote your companys business, but rather to act as an advocate or champion within both companies. When you are dealing with the client you must do your best to represent your company as a source of solutions and business resources. But you must also act as an advocate for your key account within your own company. And that doesnt just mean you should push for the lowest possible price every time you also have to make sure that your operations team and support departments are giving your account the highest possible priority.

Planning -- This is another important feature of the key account role. You must coordinate the flow of products and services that your key account will receive from your company. There should be few surprises in the order flow from a key account. It is your responsibility to make certain that your company knows exactly what to expect from the key account in terms of timing and quantity.

Execution Key accounts are important because of their strategic value to your company, and it is your job to make sure that every aspect of the business relationship goes well. From the order to the delivery to the payment, the key accounts manager has to know what is going on and fix any problems. Thats the whole point of having a key accounts manager. You arent just pushing one specific sale you have to build and maintain a strong business relationship that is based on mutual gain. Being a nice guy and trying hard is simply not enough. It is your responsibility to make sure that your company is executing at maximum efficiency.