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

Supply • Visits • Trade Shows

Chain • Internet • Publications
• Phone/Fax • Promotion Material Market
Research
Finance
Key Account Manager Product
Development
Human Analyze Set Plan Take Review
Resources account objectives strategy action account
General
Mgmt

Technical
Support.

Marketing Sales
Product
Sales Regional Support
Mgmt Territory
Mgmt BizDev Mgmt
Mgmt

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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

 Understand account
Analyze
AnalyzeAccount
Account requirements/ needs/
customer metrics
 Reflect “balanced scorecard” in capabilities
 Plan account actions to
account metrics
Set “fix” problem P&L line
Review Setaccount
account items
Reviewaccount
account objectives
objectives  Target account goals/

accountability for profit

improvement
 Match strategy to

“improvement”
Take Plan
Planaccount
Monitor performance Takeplanned account

planned potential
against tactical plan action strategy
strategy
action
 Hold account team

members accountable  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 2
Customers Key Account Management

3
Territory Management

4
Management Reporting

5
KAM Management and Administration

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1 - Analyze and Classify Customers

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 1 - Analyze and Classify Customers Level 2

2.1
Profile Account

1.1 1.2 1.5

1.3 1.4
Identify/Add Analyze Identify Key KA?
Segment Validate
Customer/ Customer Accounts
Customers KAs
Modify Details

Non KAs

3.3 3.1
Review Plan Call
Performance 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 2.2 2.3* 2.4 2.5*

Analyze account Set account Create account Execute plan Evaluate account
objectives plan 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: $800’000) profit
• Customer responsible for ( example
factor: 2 or more %) of the market in
units or value
• Customer with contribution (example
factor: > 5%)
• Opinion leader influences ( example
factor: 20% )
Account screening criteria
• Ability to sustain long term profitable
relationship ($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 2.1.2 2.1.3 2.1.4

Develop / update Assess position Re-evaluate account Complete account
account profile classification profile

Input Output 2.2.1

Define account
strategy
General information on the account • Business overview of the customer
Account history • Understanding of key players and
• share of customer relationships
• profitability • Map of influencers
• spending and service requirements • Review of relationship history and
• past account plans performance of the customer
• product performance
• issues
• service effort
Classification criteria

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 2.1 -Analyze Account Level 3
1.5.4
Validate Selection and Criteria

2.1.1 2.1.2 2.1.3 2.1.4

Develop / update Assess position Re-evaluate account Complete account
account profile classification profile

• Rank customers by order of • Identify account’s • Assess account’s • Develop and

importance, segmentation current situation potential / financial maintain 2.2.1
• Develop a map to guide • Identify benefits viability account profiles Define account
networking of offering to • Establish prospect • Identify process strategy
• Consider account’s influence / meet need / segment / priority for product
reputation opportunities approval
• Be familiar with account’s
business
• Estimate account’s expenditures
and constraints
• Consider account’s buying
history
• Determine account’s 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 - 20 -
 2.2 - Set account objectives Level 3
2.1.4
Complete account profile

2.2.1 2.2.2 2.2.3

Define account Set account goals Establish account
strategy objectives

2.3.1
Develop action plan

Input Output

• Account profile Customer strategy

• Company/ Business Unit strategy • Long- medium -short term
• Financial targets • Customer team

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 2.2 - Set account objectives Level 3
2.1.4
Complete account profile

2.2.1 2.2.2 2.2.3

Define account Set account goals Establish account
strategy objectives

• Identify growth • Define end users • Look for long

opportunities of products and range 2.3.1
• Identify specific services opportunities Develop action plan
product • Establish selling
opportunities goals

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 2.3 - Create account plan Level 3
2.2.3
Establish account objectives

2.3.1 2.3.2 2.3.3 2.3.4

Develop action Determine resource Consolidate & assess Finalize & approve
plan requirements account portfolio account plans

2.4.1
Execute plan
Input Output

• Opportunities identified • Account plan including actions,

• Account objectives
• Product and service offerings
• Customer needs
• Critical success factors
• Competitive position
resources, responsibilities,
timelines, quantitative and
qualitative targets and progress
measurements for the next period.
• Key account portfolio consolidated

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 2.3 - Create account plan Level 3
2.2.3
Establish account objectives

2.3.1 2.3.2 2.3.3 2.3.4

Develop action Determine resource Consolidate & assess Finalize& approve
plan requirements account portfolio account plans

2.4.1
Execute plan
• Design call cycle • Communicate • Identify growth • Integrate marketing
(day, week, month) sales approach to opportunities strategy / concept
• Select appropriate team • Identify specific
contact method product
• Build a regional opportunities
action plan
• Add customer to
call cycle
• Strategic process
and position
product

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 2.4 - Execute Account Plan Level 3
2.3.4
Finalize & approve
account plans

2.4.1 2.4.2 2.4.3

Execute Action Plan Identify new Modify account plan
opportunities

2.5.1
Measure
Input Output performance

• Action plans • New opportunities identified

• Responsibilities • Actions executed
• Resources • Results of actions
• Customer insight
• Market intelligence

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 2.4 - Execute Account Plan
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
Level 3
2.4.2 2.4.3
Identify new Modify account plan
opportunities
• Enter order or recognition • Follow up on plan 2.5.1
of order in system Measure
• Alert account to any performance
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
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 2.5 - Evaluate Account Performance Level 3

2.4.3
Modify
account plan

2.5.1 2.5.2 2.5.3

Measure Assess plan Evaluate position
performance achievement and account status
/ portfolio review

Input Output 1.2.1 2.1.1

Historical Develop / update
Review account profile
• Results of actions • Assessment of account 2.3.3
• Cost of actions performance Review and assess
• Resources consumed • Review of the return on account portfolio
• Sales the account
• Cost of goods • Review of the Key
• Services and goods provided Account portfolio
• Promotion effort • Performance rewards
• Revised targets and budgets

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 2.5 - Evaluate Account Performance Level 3
2.4.3
Modify
account plan

2.5.1 2.5.2 2.5.3

Measure Assess plan Evaluate position
performance achievement and account status
/ portfolio review

• Get feed back from • Calculate ROI

• Evaluate
account • Review sales
• Analyze win / loss relationship with
records
• Compare account 1.2.1
• Re- evaluate sales
performance • Evaluate skills to Historical
strategy
against goal deal with account Review
• Benchmark own • Build skills
performance
2.1.1
against competition
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 3.2 3.3

Plan Call Activity Execute Contact Review Performance

1.2
Analyze Customer Details

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 3.1 - Plan Call Activity Level 3

Internal Sales External Sales Financial

Information Information Information
3.3.4 3.2.1
Individual Prepare
•Ex-factory data •Cash sales •Cost
and volume
Sales Effectiveness for call
•Revenue
•Profitability Assessment

ONGOING

3.1.1 3.1.3 3.1.4 3.1.5 3.1.6

Collect/Review 3.1.2 Review Segment Define Call Schedule Organize
Customer Targeting Strategies & Plan Calls Logistics
Information Definitions

1.5.4
Validate
ONGOING
Selection and
Criteria

3.3.6 Marketing and

Change Product Strategy
Process/Plans

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 3.2 - Execute Contact Level 3

3.1.6
Organize
Logistics

3.2.4 3.2.5
3.2.1 3.2.2 3.2.3 3.2.6 3.2.7
Match Gain
Prepare Open Understand Close Document
product to commit-
for contact Contact Needs Contact Contact
needs ment

3.3.2
Individual
3.3.4 analysis of
Individual sales performance
Sales Effectiveness data
Assessment

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 3.3 - Review Performance Level 3

Internal Sales External Sales Financial

Information Information Information

•Ex-factory data •Cash sales •Cost, revenue, profitability

and volume

3.3.1 3.3.2
Management analysis Management Sales Force
of sales performance data Effectiveness Assessment
(including training function) (including training function) PERIODIC PERIODIC
PERIODIC PERIODIC 3.3.5
3.2.7 3.3.6
Document Understand link Change
Contact between actions Process/Plans
ONGOING ONGOING and performance

3.3.2 3.3.4
Individual analysis Individual Sales Force 3.1.1
of sales performance data Effectiveness Assessment Review History
and Targets
ONGOING

3.1.4 3.2.1 1.2.1

Define Call Prepare Historical
Objectives for call 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 Level 3

•Marketing Plans
4.1.1 •Sales Plans
•Account Plans
Planning Information
•Planned and actual details available
•Plans which roll-up at global, country, regional and territory level

•Product Encyclopaedia
•Up-to-date Clinical Work
4.1.2
•Papers written
Products and Services •New studies (internal and competitor)
•Product bebefits (safety profile, efficacy, AEs, price/cost

•Queries from customers

.1.3 •ADRs
l Information •Protocol Information
•Different Usage patterns

•Details of marketing messages by product and segment

4.1.4 •Catalogue of marketing materials
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

4.1.5 •Newsflashes about events which may impact operations
Company Knowledge/News •Ability to share important information across
regions - not just vertically

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 4.2 - Marketplace Information Level 3

•Gguidelines
4.2.1 •Reimbursement levels
Government Policies • Budget eligibility

•Marketing messages/materials and recommended response

4.2.2 •Competitor strengths and weaknesses by product and segment
•Global/country level activity - launches, campaigns, etc.
Competitor Information
•Account level activity - products offered, share of wallet, incentives, etc.

•End user profile

4.2.3 •Treatments
•Research
Information
•Future trends

•Prescribing patterns and trends

4.2.4 •Economic and regulatory influencers
Practice Trends

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 4.3 - Performance Information Level 3

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

•Market share by product at (account, territory, region and national levels)

4.3.2 •Comparison at these levels to competitor products
Marketing Performance

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

•Contacts/Calls (actual vs. target)

4.3.5 •Monthly actions and objectives (actual vs. target)
Performance against plan

•Individual performance against incentive targets

4.3.6 •Percentage contribution (territory, region, etc.)
Incentives Performance

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 4.4 - Customer Information Level 3

•Name, title and role

4.4.1 •Account type (e.g. hospital, clinic, GP, etc.)
Demographic Information •Size, estimated budget, etc.
•Interests and decision drivers of key players at account

•Fax
4.4.2 •Phone
Contact Information •e-mail
•Geographical location (to post code level)

•Sales by product category over time (historical)

4.4.3 •Planned sales by product category (future)
Sales history and plan

•Names and roles of person who made contact

4.5.4 •Purpose of contact
•Results and actions or questions arising
Contact history and plan
•Planned future contacts (when, where, by who, for what)

•Relationships within account (influencers, decision makers, etc.)

4.5.5 •Relationships between account and external bodies/individuals
•Relationships to Customers
Relationship Profiles

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