Are You Making These 12 Mistakes in Key Account Management?

If you run client accounts and growth has stalled, you will see the same signs: expansions slip, one sponsor carries the relationship, and late‑stage discounts appear. Reviews tell you what happened rather than what will happen. This piece shows practical ways to spot likely blockers and address them with moves that strengthen relationships and unlock upsell, cross‑sell, and renewal. To manage key accounts well, focus on access, value, and simple governance you can run every week.

We will call out twelve common mistakes and show practical fixes that improve access, value, and governance. Along the way, we will explain how managing key accounts requires discipline, behavioural insight, and clear operating standards. If you want a deeper system for managing key accounts, you can explore TLSA’s Key Account Management course as you read.

How do you spot key account trouble fast?

When managing key accounts, look for three signals that take minutes to check.

• Expansion pipeline vs run‑rate by account. If expansion lags run‑rate for two quarters, the account plan will often lack clear initiatives.
• Stakeholder map depth. If access stops at a single champion, you increase the risk of churn and price pressure.
• Customer‑dated next step. If your last agreed action has no customer date, momentum is likely slipping.

These signals show where to focus first when managing key accounts: access, value, or governance.

The 12 mistakes in key account management and how to fix them

For each mistake, we explain the problem, why it shows up, and, most importantly, what to do next.

A. Strategy and selection

1) No written KAM (Key Account Management) strategy.
Problem: key accounts get ad‑hoc attention and “normal selling” rules.
Why it happens: leaders assume experience equals alignment.
What to do (quick start):

1. Draft a one‑page KAM charter that names ICP (Ideal Customer Profile), value case, roles, review cadence, and rules of engagement.
2. Share it with the account leads and your sponsor; edit once.
3. Sign off and schedule a 30‑minute monthly review against the charter so it drives real calendar time.

2) The wrong portfolio.
Problem: too many accounts, legacy pets, or low potential.
Why it happens: sunk‑cost bias and fear of gaps.
What to do (practical cut):

1. Score each account for fit, potential, and profitability on a 1–5 scale.
2. Keep the top band; place the bottom band on a managed exit path (handover to run‑rate or partner).
3. Reassign time to the kept accounts and measure coverage depth after 30 days.

3) Boiling the ocean.
Problem: long wish lists and no progress.
Why it happens: no constraint.
What to do (focus):

1. Pick three priorities per account for the next 12 weeks.
2. Name an owner for each and the customer counterpart.
3. Add one customer‑dated next step to the Mutual Action Plan (MAP) for each priority. Constraint sharpens attention and speeds decisions.

B. Relationship design and enablement

4) Single‑threaded access.
Problem: one sponsor, fragile deals, late surprises.
Why it happens: comfort with a familiar contact.
What to do (multi‑thread):

1. Build a stakeholder map with three levels: executive, economic buyer, users.
2. Plan two warm introductions (peer reference or partner) and one executive‑to‑executive call.
3. Log each new contact in CRM (Customer Relationship Management) with role and next step. Track coverage depth monthly and protect it.

5) Selling “our stuff” instead of co‑creating value.
Problem: feature demos and no customer words in the plan.
Why it happens: internal pressure to present.
What to do (co‑create):

1. Send a one‑page insight before the meeting.
2. In the meeting, ask the client to edit assumptions and payback.
3. Turn the edits into a joint roadmap with a first step and success criteria. Reciprocity helps build trust and can speed agreement.

6) Generic training with no context.
Problem: playbooks live in a folder.
Why it happens: one‑size programmes and tool talk.
What to do (make it live):

1. Rewrite call plans and proposal outlines using examples from your market.
2. Coach managers first; have them run two live call reviews a week.
3. Add the standards to the weekly agenda so usage is visible. Adoption usually follows leadership attention.

C. Leadership and governance

7) Weak executive sponsorship.
Problem: blockers linger and decisions drift.
Why it happens: no named owner at board level.
What to do (make it visible):

1. Name a board sponsor per top account and publish the list.
2. Add a 20‑minute sponsor slot to each QBR (Quarterly Business Review) for decisions and escalations.
3. Track issue unblock rate and attendance; replace inactive sponsors.

8) Reactive QBRs.
Problem: slide shows and no decisions.
Why it happens: reviews built for reporting, not progress.
What to do (decision‑led):

1. Base the QBR on the Mutual Action Plan (MAP).
2. Open with last commitments, then decisions needed, risks, and asks.
3. End with customer‑dated next steps and named owners; circulate in 24 hours.

9) No standards.
Problem: inconsistent data, unclear stage exits, fuzzy roles.
Why it happens: everyone makes their own rules.
What to do (set the bar):

1. Publish stage exit criteria, data hygiene rules, and roles on one page.
2. Add two required CRM fields for KAM health (stakeholder depth, MAP status).
3. Review compliance weekly and recognise teams that meet the bar.

D. Execution and measurement

10) One pipeline for everything.
Problem: run‑rate work chokes strategic initiatives.
Why it happens: teams meet only to chase this quarter.
What to do (separate the streams):

1. Create two views: run‑rate and strategic initiatives.
2. Hold a short weekly review for run‑rate and a separate fortnightly review for initiatives.
3. Protect initiative time in calendars so long‑value plays don’t get crowded out.

11) No mutual action plan.
Problem: vague next steps and late‑stage slips.
Why it happens: assumptions replace clear commitments.
What to do (co‑own the plan):

1. Build a MAP with customer‑dated steps, owners on both sides, and success criteria.
2. Use it to drive QBRs and weekly checks.
3. Close each meeting by confirming the next customer‑dated step in writing.

12) No early win to prove the model.
Problem: strategy talk without belief.
Why it happens: change fatigue and low trust.
What to do (lighthouse):

1. Pick one narrow initiative with an executive sponsor and a clear payback.
2. Deliver it on time and publish the result internally.
3. Replicate the same pattern in two or three similar accounts.

If you want help to embed standards and coaching in managing key accounts, our Key Account Management course gives your team practical tools, patterns, and reviews they can run next week.

Relationship tactics that compound

Behavioural tactics work when they feel natural and customer‑first. Use them to strengthen trust, widen access, and keep decisions moving when managing key accounts.

Commitment and consistency. Agree the next step while motivation is high, then write it into the Mutual Action Plan (MAP) with a date and an owner on both sides. Follow up the same day with a short note that restates who will do what. Written commitments help reduce drift because people tend to act in line with what they agreed.

Reciprocity. Share something useful before you ask for time. Send a one‑page insight or a benchmark that speaks to their world, then invite the client to edit it. When the customer adds their words, they begin to co‑own the value case, which makes later approvals easier.

Social proof. New stakeholders often trust peers more than vendor claims. Bring a relevant reference, a short joint call with a similar client, or usage data from the same industry. The aim is not a long case study. It is a credible signal that people like them have made the same decision and seen value.

Authority. Senior leaders open doors that sales teams cannot. Match your executive with a client executive of similar seniority for a short, focused meeting that covers outcomes, risks, and the joint value case rather than features. Give your executive a short written brief with context and one clear ask so the session feels relevant and moves the decision forward.

Scarcity. Choice can slow decisions. Limit the plan to three priorities and state the trade‑offs you will accept. A tighter list helps both sides decide faster because the path forward is clear.

Operating standards that keep relationships healthy

Strong relationships rest on simple standards that teams follow every week. Managing key accounts is about building habits that show progress and prove value at every stage.

Document them once, make them visible, and coach to them in reviews.

Keep a live account plan that shows the value case and three active priorities. Refresh it monthly so plans reflect what is really happening. Build a stakeholder map that reaches the economic buyer and at least two influencers, then track coverage depth so single‑thread risk stays low. Run a dual pipeline and set different cadences for run‑rate work and strategic initiatives, which protects time for long‑value plays.

For each key initiative, write a Mutual Action Plan with customer‑dated steps, success criteria, and owners on both sides. Use the same weekly pipeline agenda every time: new opportunities, stage movement, ageing by stage, and risks with an owner and a customer‑dated next step. Close with one change you will test next week. Hold a Monthly Business Review (MBR) and a Quarterly Business Review (QBR). Start the QBR with last commitments and end with decisions, risks, and asks for the next period. These simple habits help make managing key accounts more predictable for you and valuable for the client.

If you want a clean baseline and a priority plan, request a Sales Assessment. If you need manager coaching time in calendars, explore Managing the Sales Team. For sponsorship and governance, speak to our Sales Leadership Consultancy.

A quick example from the field

Composite pattern from multiple accounts: A single‑threaded account faced discount pressure and slow renewals. The team built a stakeholder map to three levels, ran a joint value workshop, and agreed a Mutual Action Plan (MAP) with customer‑dated steps. Expansion followed from an agreed value case rather than cycles of discount requests. It is a clear example of how managing key accounts with structure and consistency can create more predictable growth.

Make key accounts your competitive advantage with TLSA

Start with one or two accounts and apply the fixes where the pain is sharpest. Review progress weekly and share wins so other teams can copy what works.

When you want a full system for managing key accounts, TLSA helps you put the standards, coaching rhythm, and stakeholder strategies to work quickly. Our approach to managing key accounts helps your team build a repeatable process for building deeper relationships, securing renewals, and unlocking expansion. Book a consultation and tell us about your accounts and goals.