You are on page 1of 34

Key Account Management

Marketing and Sales Excellence

Team Mission:
Deliver World Class Key Account & Territory Management

-1-

Operating model relationship overview

Market Factors Distribution

Customer

Partners

Government Competition Supply Chain

Visits Internet Phone/Fax

Trade Shows Publications Promotion Material

Market Research Product Development General Mgmt Technical Support.

Finance

Key Account Manager


Analyze account
Set objectives Plan strategy

Human Resources

Take action

Review account

Marketing Product Mgmt Sales Mgmt Territory Mgmt BizDev Regional Mgmt

Sales Support

-2-

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

Review account

Set account objectives

Monitor performance against tactical plan Hold account team members accountable

Take planned action

Plan account strategy

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

Include customer in account planning process Develop both internal and customer targets Tie actions/events to improvement opportunities

-3-

Key Account Management


Process diagrams

-5-

Objective
The principle objective of Key Account Management is to provide the following benefits to the Sales Organization and Customer..

MARKETING AND SALES


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

CUSTOMER
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

-6-

Process Overview

Level 1

1 Analyze & Classify Customers

2 Key Account Management

3 Territory Management

4 Management Reporting

5 KAM Management and Administration

-7-

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

-9-

2 - Key Account Management

- 15 -

2 - Key Account Management


1.5 Identify Key Accounts

Level 2

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

- 16 -

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

- 17 -

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

- 18 -

2.1 -Analyze Account


1.5.4 Validate Selection and Criteria

Level 3

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
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

Output
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

- 19 -

2.1 -Analyze Account


1.5.4 Validate Selection and Criteria

Level 3

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

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

Assess accounts potential / financial viability Establish prospect segment / priority

Develop and maintain 2.2.1 account profiles Define account Identify process strategy for product approval

- 20 -

2.2 - Set account objectives


2.1.4 Complete account profile

Level 3

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
Account profile Company/ Business Unit strategy Financial targets

Output
Customer strategy Long- medium -short term Customer team

- 21 -

2.2 - Set account objectives


2.1.4 Complete account profile

Level 3

2.2.1 Define account strategy

2.2.2 Set account goals

2.2.3 Establish account objectives

Identify growth opportunities Identify specific product opportunities

Define end users of products and services Establish selling goals

Look for long range opportunities

2.3.1 Develop action plan

- 22 -

2.3 - Create account plan


2.2.3 Establish account objectives

Level 3

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

Input
Opportunities identified Account objectives Product and service offerings Customer needs Critical success factors Competitive position

Output

2.4.1 Execute plan

Account plan including actions, resources, responsibilities, timelines, quantitative and qualitative targets and progress measurements for the next period. Key account portfolio consolidated

- 23 -

2.3 - Create account plan


2.2.3 Establish account objectives

Level 3

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

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

Communicate sales approach to team

Identify growth opportunities Identify specific product opportunities

2.4.1 Execute plan Integrate marketing strategy / concept

- 24 -

2.4 - Execute Account Plan


2.3.4 Finalize & approve account plans

Level 3

2.4.1 Execute Action Plan

2.4.2 Identify new opportunities

2.4.3 Modify account plan

Input
Action plans Responsibilities Resources

Output
New opportunities identified Actions executed Results of actions Customer insight Market intelligence

2.5.1 Measure performance

- 25 -

2.4 - Execute Account Plan


2.3.4 Finalize & approve account plans

Level 3

2.4.1 Execute Action Plan

2.4.2 Identify new opportunities

2.4.3 Modify account 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

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

Follow up on plan

2.5.1 Measure performance

- 26 -

2.5 - Evaluate Account Performance


2.4.3 Modify account plan

Level 3

2.5.1 Measure performance

2.5.2 Assess plan achievement

2.5.3 Evaluate position and account status / portfolio review

Input
Results of actions Cost of actions Resources consumed Sales Cost of goods Services and goods provided Promotion effort Revised targets and budgets

Output

Assessment of account performance Review of the return on the account Review of the Key Account portfolio Performance rewards

1.2.1 Historical Review

2.1.1 Develop / update account profile 2.3.3 Review and assess account portfolio

- 27 -

2.5 - Evaluate Account Performance


2.4.3 Modify account plan

Level 3

2.5.1 Measure performance

2.5.2 Assess plan achievement

2.5.3 Evaluate position and account status / portfolio review

Get feed back from account Analyze win / loss Compare performance against goal Benchmark own performance against competition

Calculate ROI Review sales records Re- evaluate sales strategy

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

- 28 -

3 - Territory Management

- 29 -

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

- 30 -

3.1 - Plan Call Activity


External Sales Information
Cash sales and volume

Level 3

Internal Sales Information

Financial Information
Cost Revenue Profitability

Ex-factory data

3.3.4 Individual Sales Effectiveness Assessment

3.2.1 Prepare for call

ONGOING 3.1.1 Collect/Review Customer Information 3.1.3 Review Segment Strategies & Definitions

3.1.2 Targeting

3.1.4 Define Call Plan

3.1.5 Schedule Calls

3.1.6 Organize Logistics

1.5.4 Validate Selection and Criteria

ONGOING

3.3.6 Change Process/Plans

Marketing and Product Strategy

- 31 -

3.2 - Execute Contact

Level 3

3.1.6 Organize Logistics

3.2.1 Prepare for contact

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

3.3.4 Individual Sales Effectiveness Assessment

3.3.2 Individual analysis of sales performance data

- 32 -

3.3 - Review Performance


Internal Sales Information External Sales Information
Cash sales and volume

Level 3

Financial Information
Cost, revenue, profitability

Ex-factory data

3.3.1 Management analysis of sales performance data (including training function) 3.2.7 Document Contact PERIODIC

3.3.2 Management Sales Force Effectiveness Assessment (including training function) PERIODIC

PERIODIC 3.3.5 Understand link between actions and performance

PERIODIC 3.3.6 Change Process/Plans

ONGOING 3.3.2 Individual analysis of sales performance data

ONGOING 3.3.4 Individual Sales Force Effectiveness Assessment ONGOING 3.1.4 Define Call Objectives 3.2.1 Prepare for call

3.1.1 Review History and Targets

1.2.1 Historical Review

- 33 -

4 - Management Reporting

- 34 -

4 - Management Reporting
4.1 Company Information

Level 2

4.2 Marketplace Information

4.3 Performance Information

4.4 Customer Information

- 35 -

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)

- 36 -

4.1 - Company Information


Marketing Plans Sales Plans Account Plans Planned and actual details available Plans which roll-up at global, country, regional and territory level Product Encyclopaedia Up-to-date Clinical Work Papers written New studies (internal and competitor) Product bebefits (safety profile, efficacy, AEs, price/cost Queries from customers ADRs Protocol Information Different Usage patterns

Level 3

4.1.1 Planning Information

4.1.2 Products and Services

.1.3 l Information

4.1.4 Marketing Materials

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

4.1.5 Company Knowledge/News

- 37 -

4.2 - Marketplace Information


Gguidelines Reimbursement levels Budget eligibility

Level 3

4.2.1 Government Policies

4.2.2 Competitor Information

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

4.2.3 Information

4.2.4 Practice Trends

Prescribing patterns and trends Economic and regulatory influencers

- 38 -

4.3 - Performance Information


Forecast vs. actual vs. target (at account, territory, regional and national levels) Following planning horizons available : weekly, monthly, quarterly, annually

Level 3

4.3.1 Sales Performance

4.3.2 Marketing Performance

Market share by product at (account, territory, region and national levels) Comparison at these levels to competitor products

4.3.4 Financial Performance

Budget spend against plan (account, territory, region and national levels) ROI vs. forecast (account, territory, region and national levels)

4.3.5 Performance against plan

Contacts/Calls (actual vs. target) Monthly actions and objectives (actual vs. target)

4.3.6 Incentives Performance

Individual performance against incentive targets Percentage contribution (territory, region, etc.)

- 39 -

4.4 - Customer Information


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)

Level 3

4.4.1 Demographic Information

4.4.2 Contact Information

4.4.3 Sales history and plan

Sales by product category over time (historical) Planned sales by product category (future)

4.5.4 Contact history and plan

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

4.5.5 Relationship Profiles

- 40 -

You might also like