Value-based KAM: Co-developing impactful value propositions within Key Account Management

Key account management (KAM) has been recognized as one of the most strategic and effective selling approaches in business-to-business (B2B) contexts. Given that the inability to develop compelling value propositions (VPs) for key accounts (KAs) can diminish the effectiveness of KAM, this article aims to recognize potential challenges in co-developing impactful VPs in KAM and to propose strategic solutions to address them. By integrating KAM's key components and VP phases, and adopting the Service-Dominant (S-D) logic, this study develops a conceptual framework for a value-based KAM system. It then conducts a literature review through a diagnostic lens to identify strategic challenges in developing effective VPs within the B2B context. We next employ the theory synthesis approach to create strategic solutions that address the identified challenges within KAM. This research presents a conceptual framework for a value-based KAM system. It then identifies five strategic challenges in developing impactful VPs in KAM: i. Selecting and designing relevant value offerings, ii. Translating the VP from a promise into concrete actions, iii. Advancing network-oriented value co-creation, iv. Effectively communicating the value, and v. Ongoing validation of value-in-use. Ultimately, it proposes strategic solutions to address these issues. This article is among the first studies to conceptualize value-based KAM and propose it as an important value-based selling approach.