Key Account Management
Marketing and Sales Excellence
Team Mission:
Deliver World Class Key Account & Territory Management
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Operating model relationship overview
Market
Factors
Distribution
Customer
Partners
Government Competition
Visits
Internet
Phone/Fax
Supply
Chain
Finance
Trade Shows
Publications
Promotion Material
Market
Research
Key Account Manager
Analyze
account
Human
Resources
Set
objectives
Plan
strategy
Take
action
Product
Development
Review
account
General
Mgmt
Technical
Support.
Marketing
Product
Mgmt
Sales
Mgmt
Territory
Mgmt
BizDev
Regional
Mgmt
Sales
Support
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Key Account Management - best practice actions
Rank accounts on Improvement Potential index
Re-deploy resources to highest potential channels/accounts
Target category management efforts to accounts with capability
Tie account team incentives to
customer metrics
Reflect balanced scorecard in
account metrics
Analyze Account
Set account
objectives
Review account
Monitor performance
against tactical plan
Hold account team
members accountable
Understand account
requirements/ needs/
capabilities
Plan account actions to
fix problem P&L line
items
Target account goals/
accountability for profit
improvement
Match strategy to
improvement
potential
Plan account
strategy
Take planned
action
Include customer in account planning process
Develop both internal and customer targets
Tie actions/events to improvement opportunities
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Key Account Management
Process diagrams
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Objective
The principle objective of Key Account Management is to provide the following benefits
to the Sales Organization and Customer..
MARKETING AND SALES
CUSTOMER
Improved customer insight
Understanding of customer
needs
Understanding of usage patterns
Better product knowledge
Better access to marketing
material
Better competitor information
Improved performance
information
Measurable goals
Link between Business Plan
strategy and customer strategy
Better product information
Better information on services
Better understanding of
reimbursement
Better product benefits knowledge
Ability to raise individual profile
Increased end users
Provide resource input
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Process Overview
Level 1
1
Analyze & Classify
Customers
2
Key Account Management
3
Territory Management
4
Management Reporting
5
KAM Management and Administration
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1 - Analyze and Classify Customers
-8-
1 - Analyze and Classify Customers
Level 2
2.1
Profile Account
1.1
Identify/Add
Customer/
Modify
1.2
Analyze
Customer
Details
1.3
Segment
Customers
1.4
Validate
1.5
Identify Key
Accounts
KA?
KAs
Non KAs
3.3
Review
Performance
3.1
Plan Call
Activity
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2 - Key Account Management
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2 - Key Account Management
Level 2
1.5
Identify Key Accounts
2.1
Analyze account
2.2
Set account
objectives
2.3*
Create account
plan
2.4
Execute plan
2.5*
Evaluate account
performance
1.2
Analyze Customer
Details
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Key Account Criteria
Some characteristics defining a Key Account :
Key account classification criteria
Customers responsible for ( example
factor 80%) of revenue
Customer with over (example factor:
$ 1.5 mio) sales
Customer with potential of (example
factor: $1.5 mio. sales within 2 years)
Customer generating ( example
factor: $800000) profit
Customer responsible for ( example
factor: 2 or more %) of the market in
units or value
Customer with contribution (example
factor: > 5%)
Opinion leader influences ( example
factor: 20% )
Account screening criteria
Ability to sustain long term profitable
relationship ($X net over Y years)
Account values products and services
as distinct from competition
Relationship has strategic value and
can create differential advantage by
serving the customer
We can create considerable barrier to
entry by serving the customer
Customer relationship based on more
than price negotiation
Potential for growth greater than the
current major clients
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Key Account Based Selling - Advantages
KAM can deliver the following benefits :
Increase sales effectiveness by pursuing high potential
accounts and opportunities
Increase market share and revenue within existing accounts
Increase profitability through development of the appropriate
product & service offering for the customer.
Provide opportunities to contribute to the success of the
customer
Improve customer retention through stronger relationships and
increased client satisfaction
Facilitate the allocation of marketing and sales resources
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2.1 -Analyze Account
Level 3
1.5.4
Validate Selection and Criteria
2.1.1
Develop / update
account profile
2.1.2
Assess position
2.1.3
Re-evaluate account
classification
2.1.4
Complete account
profile
Input
Output
General information on the account
Account history
share of customer
profitability
spending and service requirements
past account plans
product performance
issues
service effort
Classification criteria
Business overview of the customer
Understanding of key players and
relationships
Map of influencers
Review of relationship history and
performance of the customer
2.2.1
Define account
strategy
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2.1 -Analyze Account
Level 3
1.5.4
Validate Selection and Criteria
2.1.1
Develop / update
account profile
2.1.2
Assess position
Rank customers by order of
Identify accounts
importance, segmentation
current situation
Develop a map to guide
Identify benefits
networking
of offering to
Consider accounts influence /
meet need /
reputation
opportunities
Be familiar with accounts
business
Estimate accounts expenditures
and constraints
Consider accounts buying
history
Determine accounts buying cycle
Identify influencers / decision
makers
Identify prospect by product line /
treatment modality ; 3rd party
information
Conduct needs assessment
Identify, probe ,qualify needs /
concerns
Seek alternate sources of
information on the account
2.1.3
Re-evaluate account
classification
Assess accounts
potential / financial
viability
Establish prospect
segment / priority
2.1.4
Complete account
profile
Develop and
maintain
2.2.1
account profiles Define account
Identify process
strategy
for product
approval
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2.2 - Set account objectives
Level 3
2.1.4
Complete account profile
2.2.1
Define account
strategy
2.2.2
Set account goals
2.2.3
Establish account
objectives
2.3.1
Develop action plan
Input
Output
Account profile
Company/ Business Unit strategy
Financial targets
Customer strategy
Long- medium -short term
Customer team
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2.2 - Set account objectives
Level 3
2.1.4
Complete account profile
2.2.1
Define account
strategy
Identify growth
opportunities
Identify specific
product
opportunities
2.2.2
Set account goals
Define end users
of products and
services
Establish selling
goals
2.2.3
Establish account
objectives
Look for long
range
opportunities
2.3.1
Develop action plan
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2.3 - Create account plan
Level 3
2.2.3
Establish account objectives
2.3.1
Develop action
plan
2.3.2
Determine resource
requirements
2.3.3
Consolidate & assess
account portfolio
2.3.4
Finalize & approve
account plans
2.4.1
Execute plan
Input
Output
Account plan including actions,
resources, responsibilities, timelines,
quantitative and qualitative targets
and progress measurements for the
next period.
Key account portfolio consolidated
Opportunities identified
Account objectives
Product and service offerings
Customer needs
Critical success factors
Competitive position
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2.3 - Create account plan
Level 3
2.2.3
Establish account objectives
2.3.1
Develop action
plan
Design call cycle
(day, week, month)
Select appropriate
contact method
Build a regional
action plan
Add customer to
call cycle
Strategic process
and position
product
2.3.2
Determine resource
requirements
Communicate
sales approach to
team
2.3.3
Consolidate & assess
account portfolio
Identify growth
opportunities
Identify specific
product
opportunities
2.3.4
Finalize& approve
account plans
2.4.1
Execute plan
Integrate marketing
strategy / concept
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2.4 - Execute Account Plan
Level 3
2.3.4
Finalize & approve
account plans
2.4.1
Execute Action Plan
2.4.2
Identify new
opportunities
Input
Output
Action plans
Responsibilities
Resources
2.4.3
Modify account plan
2.5.1
Measure
performance
New opportunities identified
Actions executed
Results of actions
Customer insight
Market intelligence
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2.4 - Execute Account Plan
Level 3
2.3.4
Finalize & approve
account plans
2.4.1
Execute Action Plan
Demonstrate proof (clinical)
Present clinical information
Refer to other successes testimonial
Explain products in terms of
competition, feature benefit
selling
Reassure account of our value
Confirm benefits of offering to
meet needs
Use appropriate selling tools
Gain account agreement
Negotiate order / terms and
conditions
Receive order
2.4.2
Identify new
opportunities
Enter order or recognition
of order in system
Alert account to any
changes (reimbursement)
Resolve disputes
Arbitrate differences, make
adjustments
Assure account satisfaction
Show appreciation of
business
Question all influencers
and decision makers
Grow advocates for
feedback
Reinforce prior purchasing
decisions
2.4.3
Modify account plan
Follow up on plan
2.5.1
Measure
performance
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2.5 - Evaluate Account Performance
Level 3
2.4.3
Modify
account plan
2.5.1
Measure
performance
2.5.2
Assess plan
achievement
2.5.3
Evaluate position
and account status
/ portfolio review
1.2.1
Historical
Review
Input
Output
Assessment of account
performance
Review of the return on
the account
Review of the Key
Account portfolio
Performance rewards
Results of actions
Cost of actions
Resources consumed
Sales
Cost of goods
Services and goods provided
Promotion effort
Revised targets and budgets
2.1.1
Develop / update
account profile
2.3.3
Review and assess
account portfolio
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2.5 - Evaluate Account Performance
Level 3
2.4.3
Modify
account plan
2.5.1
Measure
performance
Get feed back from
account
Analyze win / loss
Compare
performance
against goal
Benchmark own
performance
against competition
2.5.2
Assess plan
achievement
Calculate ROI
Review sales
records
Re- evaluate sales
strategy
2.5.3
Evaluate position
and account status
/ portfolio review
Evaluate
relationship with
account
Evaluate skills to
deal with account
Build skills
1.2.1
Historical
Review
2.1.1
Develop / update
account profile
2.3.3
Review and assess
account portfolio
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3 - Territory Management
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3 - Territory Management
Level 2
1.5
Identify Key Accounts
3.1
Plan Call Activity
3.2
Execute Contact
3.3
Review Performance
1.2
Analyze Customer Details
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3.1 - Plan Call Activity
Internal Sales
Information
External Sales
Information
Ex-factory data
Cash sales
and volume
Level 3
Financial
Information
Cost
Revenue
Profitability
3.3.4
Individual
Sales Effectiveness
Assessment
3.2.1
Prepare
for call
ONGOING
3.1.1
Collect/Review
Customer
Information
3.1.2
Targeting
3.1.3
Review Segment
Strategies &
Definitions
1.5.4
Validate
Selection and
Criteria
3.3.6
Change
Process/Plans
3.1.4
Define Call
Plan
3.1.5
Schedule
Calls
3.1.6
Organize
Logistics
ONGOING
Marketing and
Product Strategy
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3.2 - Execute Contact
Level 3
3.1.6
Organize
Logistics
3.2.1
Prepare
for contact
3.3.4
Individual
Sales Effectiveness
Assessment
3.2.2
Open
Contact
3.2.3
Understand
Needs
3.2.4
Match
product to
needs
3.2.5
Gain
commitment
3.2.6
Close
Contact
3.2.7
Document
Contact
3.3.2
Individual
analysis of
sales performance
data
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3.3 - Review Performance
Internal Sales
Information
External Sales
Information
Ex-factory data
Cash sales
and volume
Level 3
Financial
Information
Cost, revenue, profitability
3.3.1
Management analysis
of sales performance data
(including training function)
3.3.2
Management Sales Force
Effectiveness Assessment
(including training function)
PERIODIC
PERIODIC
ONGOING
ONGOING
3.2.7
Document
Contact
3.3.2
Individual analysis
of sales performance data
3.3.4
Individual Sales Force
Effectiveness Assessment
PERIODIC
PERIODIC
3.3.5
Understand link
between actions
and performance
3.3.6
Change
Process/Plans
3.1.1
Review History
and Targets
ONGOING
3.1.4
Define Call
Objectives
3.2.1
Prepare
for call
1.2.1
Historical
Review
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4 - Management Reporting
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4 - Management Reporting
Level 2
4.1
Company Information
4.2
Marketplace Information
4.3
Performance Information
4.4
Customer Information
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General requirements of management reporting
GENERAL REQUIREMENTS
Information entered once only (ensures motivation, quality and consistency)
Ability to roll up data at a number of levels (global, national, regional, territory) Ability
to cut information in a number of different ways :
Segment
Therapeutic Area
Region or Territory
Sales Rep.
Tool to assist in the identification of patterns and trends in large volumes of data
Ability to access specific relevant information (push or pull) as opposed to the
traditional push of large volumes of often irrelevant data
Ability to generate standard reports
Flexible and configurable ad-hoc reporting suitable for a wide range of user types
Ability to configure a favorites dashboard of reports drawing on standard reports
and ad-hoc reports (either created by the user or by other users)
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4.1 - Company Information
4.1.1
Planning Information
Marketing Plans
Sales Plans
Account Plans
Planned and actual details available
Plans which roll-up at global, country, regional and territory level
4.1.2
Products and Services
Product Encyclopaedia
Up-to-date Clinical Work
Papers written
New studies (internal and competitor)
Product bebefits (safety profile, efficacy, AEs, price/cost
.1.3
l Information
4.1.4
Marketing Materials
4.1.5
Company Knowledge/News
Level 3
Queries from customers
ADRs
Protocol Information
Different Usage patterns
Details of marketing messages by product and segment
Catalogue of marketing materials
Calendar detailing key events (e.g. launches, new materials, available)
Ability to view availability of incentives (e.g. tickets, conferences, etc.)
Company best practice
Newsflashes about events which may impact operations
Ability to share important information across
regions - not just vertically
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4.2 - Marketplace Information
4.2.1
Government Policies
4.2.2
Competitor Information
4.2.3
Information
4.2.4
Practice Trends
Level 3
Gguidelines
Reimbursement levels
Budget eligibility
Marketing messages/materials and recommended response
Competitor strengths and weaknesses by product and segment
Global/country level activity - launches, campaigns, etc.
Account level activity - products offered, share of wallet, incentives, etc.
End user profile
Treatments
Research
Future trends
Prescribing patterns and trends
Economic and regulatory influencers
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4.3 - Performance Information
4.3.1
Sales Performance
4.3.2
Marketing Performance
4.3.4
Financial Performance
4.3.5
Performance against plan
4.3.6
Incentives Performance
Level 3
Forecast vs. actual vs. target (at account, territory, regional and national levels)
Following planning horizons available : weekly, monthly, quarterly, annually
Market share by product at (account, territory, region and national levels)
Comparison at these levels to competitor products
Budget spend against plan (account, territory, region and national levels)
ROI vs. forecast (account, territory, region and national levels)
Contacts/Calls (actual vs. target)
Monthly actions and objectives (actual vs. target)
Individual performance against incentive targets
Percentage contribution (territory, region, etc.)
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4.4 - Customer Information
4.4.1
Demographic Information
4.4.2
Contact Information
4.4.3
Sales history and plan
4.5.4
Contact history and plan
4.5.5
Relationship Profiles
Level 3
Name, title and role
Account type (e.g. hospital, clinic, GP, etc.)
Size, estimated budget, etc.
Interests and decision drivers of key players at account
Fax
Phone
e-mail
Geographical location (to post code level)
Sales by product category over time (historical)
Planned sales by product category (future)
Names and roles of person who made contact
Purpose of contact
Results and actions or questions arising
Planned future contacts (when, where, by who, for what)
Relationships within account (influencers, decision makers, etc.)
Relationships between account and external bodies/individuals
Relationships to Customers
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