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

Distributio
n Customer Partners

Governmen Competitio
t n

 Visits  Trade Shows

 Internet  Publications
 Phone/Fax  Promotion
Supply
Material
Chain
Key Account Manager Market
Research
Finance Set
Analyze Plan Take Review
Objective
Account strategy action Account Product
s Development
Human
Resources
General
Mgmt

Technical
Regional Support
Marketing Product Sales Territory BizDev Sales
Mgmt Support
Mgmt Mgmt Mgmt
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3
A model for identifying and rolling-up Key
Accounts

Global Key Accounts

National Key Accounts

Regional Key Accounts

Territory Key Accounts

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Key Account Management

Process diagrams

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 Objective

The principle objective Key Account Management is to

provide the following benefits to the Sales
Organization and customer…..
MARKETING AND SALES CUSTOMER

 Improved customer insight  Better product information

 Understanding of customer  Better information on services
needs  Better understanding of
 Understanding of usage reimbursement
patterns  Better product benefits
 Better product knowledge knowledge
 Better access to marketing  Ability to raise individual
and material profile
 Better competitor information  Increased end users
 Improved performance  Provide resource input
information
 Measurable goals
 Link between Business Plan
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strategy and customer
Process overview
Level 1

1 2
Analyze & Classify Key Account
Customers Management

3
Territory
Management

4
Customers

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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
Identify/add Analyze 1.4 Identify
Segment KA?
Customer/ Customer Validate Key
Customers KA?
Modify Details Accounts

Non KAs

3.3
Review
Performan
3.1
ce
Plan Call
Activity

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1.1 - Identify/Add Customer
Level 3

1.2.1
Enter data

1.1.4
1.1.1 1.1.2 1.1.3
Determine
Collect Review Classify Add?
Whether to Yes
Information Information Type
add

No

1.1.5
Management
Confirmation

Reject
Customer

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1.2 – Analyze Customer
Level 3

3.3.6
Change
Process/Plans
1.3.1
Establish segmentation

1.1 1.2 1.5

1.3
Identify/add Analyze 1.4 Identify
Segment
Customer/ Customer Validate Key
Customers
Modify Details Accounts

1.1.4
Determine
whether
to add

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1.3 – Segment Customer
Level 3
1.4.4
Reassign customers
and review
segmentation 1.4.1
process Confirm levels of
validation

1.1
1.3 1.5
Identify/add
Segment Identify Key
Customer/
Customers Accounts
Modify

1.2.5
Confirm Customer
Needs/Objective

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 Key Account Criteria

Some characteristics defining a Key Account :

Key account classification criteria Account screening criteria

• Customers responsible for (example • Ability to sustain long term profitable

factor 80%) of revenue relationship ($X net over & years)
• Customer with over (example factor : • Account values products and services
$ 1.5 mio) sales as distinct from competition
• Customer with potential of (example • Relationship has strategic value and
factor : $ 1.5 mio. sales within 2 years) can create differential advantage by
• Customer generating (example serving the customer
factor : $800’000) profit • We can create considerable barrier to
• Customer responsible for (example entry by serving the customer
factor : >=2 or more %) of the market in • Customer relationship based on more
units or value than price negotiation
• Customer with contribution (example • Potential for growth greater than the
factor : > 5%) current major clients
• Opinion leader influences (example
factor : 20%)

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 Key Account Based Selling - Advantages

KAM can deliver the following benefits :

 Increase sales effectiveness by pursuing high potential account 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 relationship and

increased client satisfaction

 Facilitate the allocation of marketing and sales resources

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1.4 – Validate
Level 3
1.4.4
Reassign customers
and review
segmentation 1.5.1
process Confirm KA Selection
Criteria

1.4.4
1.4.1 1.4.3
Reassign
Confirm Validate
customers
Segment segmentation
and review
Population decisions

1.3.4
Assign customers
to segments 1.3.1
Confirm segment
criteria

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2.1 – Analyze Account Level 3
1.5.4
Validate Selection and Criteria

2.1.3
2.1.1 2.1.4
2.1.2 Re-evaluate
Develop/update Complete account
Assess Position account
Account profile profile
Classification

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
performance of the customer
• Past account plans
• Product performance
• Issues
• Service effort
Classification criteria
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 2.1 – Analyze Account Level 3
1.5.4
Validate Selection and Criteria

2.1.3
2.1.1 2.1.4
2.1.2 Re-evaluate
Develop/update Complete account
Assess Position account
Account profile profile
Classification

• Rank customers by order of • Identify account’s • Access account’s • Develop and 2.2.1
importance, segmentation current situation potential / financial maintain Define account
• Develop a map to guide • Identify benefits viability account profiles strategy
networking of offering to • Establish prospect • Identify process
• 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 influences / decision
makers
• Identify prospect by product line /
treatment modality; 3rd party
information
• Conduct needs assessment
• Identify, probe, qualify needs /
concerns
• Seek alternate source of 21
2.2 – Set account objectives Level 3

2.1.4
Complete account profile

2.2.1 2.2.3
2.2.2
Define account Establish account
Set account goals
strategy objectives

2.3.1
Input Output Develop action plan

• 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 2.2.3
2.2.2
Define account Establish account
Set account goals
strategy objectives

2.3.1
• Identify growth • Define end users of • Look for long Develop action plan
opportunities product and services range
• Identify specific • Establish selling opportunities
product goals
opportunities

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 2.3 – Create Account plan Level 3
2.2.3
Establish account objectives

2.3.2 2.3.3 2.3.4

2.3.1
Determine Consolidate & Finalize &
Develop action
resource assess account approve account
plan
requirements portfolio plans

2.4.1
Execute plan

Input Output

• Opportunities identified • Account plan including actions,

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

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 2.3 – Create Account plan Level 3
2.2.3
Establish account objectives

2.3.2 2.3.3 2.3.4

2.3.1
Determine Consolidate & Finalize &
Develop action
resource assess account approve account
plan
requirements portfolio plans

2.4.1
Execute plan

• Design call cycle • Communicate • Identify growth • Integrate marketing

(day, week, month) sales approach opportunities strategy/concept
• Select appropriate to 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

2.4.2 2.4.3
2.4.1
Identify new Modify account
Execute Action Plan
opportunities plan

2.5.1
Measure
Input Output performance

• Action plans • New opportunities identified

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

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

2.4.2 2.4.3
2.4.1
Identify new Modify account
Execute action plan
opportunities plan

• Demonstrate proof (clinical) • Enter order or recognition of • Follow up on plan

• Present clinical information order in system 2.5.1
Measure
• Refer to other successes – • Alert account to any changes performance
testimonial (reimbursement)
• Explain products in terms of • Resolve disputes
competition, feature benefit • Arbitrate differences, make
selling adjustments
• Reassure account of our value • Assure account satisfaction
• Confirm benefits of offering to • Show appreciation of business
meet needs • Question all influencers and
• Use appropriate selling tools decision makers
• Gain account agreement • Grow advocates for feedback
• Negotiate order/terms and • Reinforce prior purchasing
conditions decisions
• Receive order 27
2.5 – Evaluate Account Performance Level 3

2.4.3
Modify
account plan

2.5.3
2.5.2
2.5.1 Evaluate position and
Assess plan
Measure performance account status / portfolio
achievement
review

Input Output 1.2.1 2.1.1

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

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2.5 – Evaluate Account Performance Level 3

2.4.3
Modify
account plan

2.5.3
2.5.2
2.5.1 Evaluate position and
Assess plan
Measure performance account status / portfolio
achievement
review

• Get feed back from • Calculate ROI • Evaluate

account • Review sales relationship with
• Analyze win / loss records account 1.2.1
• Compare • Re – evaluate sales • Evaluate skills to Historical
performance strategy deal with account Review
against goal • Build skills
• Benchmark own 2.1.1
performance Develop/update
account profile
against competition
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 Internal Sales Internal Sales 3.3.4

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

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 ONGOING
Validate
Selection and
Criteria
Internal Sales
information
3.3.6
Change
Process/Plans
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 3.2 – Execute Contact Level 3

3.1.6
Organize
Logistics

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

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

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 3.3 Preview Performance Level 3

Internal Sales Internal Sales Internal Sales

information information information

• Ex-factory data • Cash sales • Cost

and volume •Revenue
•Profitability

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

3.2.7 PERIODIC PERIODIC 3.3.5

3.3.6
Document Understand link
Change
contact between actions
ONGOING ONGOING Process/Plans
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 requirement 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
 Regional 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
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 Ability to configure a “favorite” dashboard of reports drawing on
 4.1 – Company Information
Level 3
Marketing Plans


 Sales Plans
4.1  Account Plans
Company Information  Planned and actual details available
 Plans which roll-up at global, country, regional and territory
level
 Product Encyclopaedia
4.2
 Up-to-date Clinical Work
Marketplace Information  Papers written
 New studies (internal and competitor)
 Product benefits (safety profile, efficacy, AEs, price/cost)

 Queries from customers

4.3  ADRs
Performance Information
 Protocol Information
 Different Usage patterns

 Details of marketing messages by product and segment

4.4  Catalogue of marketing materials
Customer Information  Calendar detailing key events (e.g. tickets, conferences,
etc)
 Ability to view availability of incentives (e.g. tickets,
 conference,
Company best etc)
practice
4.4  Newsflashes about events which may impact operations
Customer Information
 Ability to share important information across regions – not
just vertically
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4.2 – Marketplace Information
Level 3

 Guidelines
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
Competitor Information segment
 Global/country level activity – launches, campaigns, etc
 Account level activity – products offered, share o wallet,
 incentives, etc
End user profile
4.2.3
 Treatments
Information  Research
 Future trends

4.2.4  Prescribing patterns and trends

Practice Trends  Economic and regulatory influencers

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4.3 – Performance Information
Level 3
4.3.1  Forecast vs. actual vs. target (at account, territory, regional
Sales Performance and national levels)
 Following planning horizons available : weekly, monthly,
quarterly, annually

4.3.2  Market share by product at (account, territory, regional and

Marketing Performance national levels)
 Comparison at these levels to competitor products

4.3.4  Budget spend against plan (account, territory, region and

Financial Performance national levels)
 ROI vs. forecast (account, territory, region and national
levels)

4.3.5
Performance against
 Contacts/Calls (actual vs. target)
plan  Monthly actions and objectives (actual vs. target)

4.3.6  Individual performance against incentive targets

Incentives Performance  Percentage contribution (territory, region, etc)

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 4.4 – Customer Information
Level 3
 Name, title and role
4.4.1
Demographic
 Account type (e.g. hospital, clinic, GP, etc.)
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)

4.4.3  Sales by product category over time (historical)

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

 Names and roles of person who made contact

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

 Relationships within account (influencers, decision makers,

4.5.5 etc.)
Relationship Profiles  Relationships between account and external
bodies/individuals
 Relationships to customers 41