THE IMPACT OF KEY ACCOUNT MANAGEMENT SYSTEM ON THE SATISFACTION AND LOYALTY OF KEY CLIENTS; A STUDY IN THE BANKING INDUSTRY OF KARACHI

Abstract

Purpose: The purpose of the research is to determine what Key Account Management is and how its implementation affects the performance of the organizations. How important this concept is, what are the benefits earned by the organizations after this and for all this 6 service sector companies are chosen from Pakistan’s Market and 50 key accounts of the 6 companies. The research will conclude the scenario of Pakistan's service industry with reference to KAM system. Methodology: The study involved use of questionnaires filled by 60 key account companies and 6 companies who are practicing key account management system along with the interviews. To analyze the data, MS office and regression through SPSS were applied. The analysis of descriptive data is done by interpreting the responses in general words for the easy understanding. Findings: The analysis and comparative results explains the understanding of Key Account Management by the local banking sector companies in Pakistan and it also suggested that companies are getting higher sales, increase in retention ratio of the key clients, increase in satisfaction level of the clientele and improvement in the services; by implementing the KAM system. The benefits and the additional services provided by the key accounts were also identified. Practical Implications: The outcomes of the research might help the companies in understanding their KAM practices in a better way and how to resolve the issues the key accounts are still facing. It will also help the other companies who are in the race of implementing this concept in their organizations.