Not all customers are strategic — and not all accounts should be treated like key accounts. In this SAM/KAM mini-case, Peter Piper, account manager at Contract Employees Ltd., has spent three years supplying staff to DeepDiscount Retail Stores, a client that maintains a strictly transactional, arm’s-length relationship with all vendors.
Despite good delivery performance, DeepDiscount rarely engages with suppliers beyond basic procurement. When a competitor undercuts CEL’s rate (resulting in poor service), a warehouse manager pushes back — but the purchasing team remains uninterested. Peter begins to question whether the account is worth his continued effort.
Key Case Details
- DeepDiscount rebuffs all relationship-building — no meetings, no access beyond procurement
- CEL loses some placements to a cheaper competitor, resulting in service failure
- Peter learns of internal dissatisfaction at DeepDiscount — but nothing changes officially
Strategic Reflections
- This account likely belongs in the “low potential / low relationship” quadrant of the account matrix
- Value creation is not possible in a one-off bidding environment with no trust or collaboration
- Resources should be reallocated unless internal change within the customer justifies another look
Recommended Actions
- Reclassify the account as transactional and assign a junior handler if retention is viable
- Monitor any internal shifts that might unlock future strategic engagement
- Redirect senior account resources to relationships where trust and profit potential exist
Insight
“Key account management is about focus. Treating every customer as strategic wastes time, talent, and potential.” – Professor Malcolm McDonald
Download the Mini-Case
This summary outlines the dilemma, but the full PDF includes case detail, portfolio analysis, and discussion points for evaluating account prioritisation strategy.
Reproduced with kind permission from Dr Beth Rogers.