Key Account Management

1
Key Account Management

• Marketing and Sales Excellence

Team Mission Deliver World Class Key Account
Territory Management
2
Operating model relationship overview
Market Factors
Customer
Distribution
Partners
Competition
Government

• Trade Shows
• Publications
• Promotion Material

• Visits
• Internet
• Phone/Fax

Supply Chain
Market Research
Finance

Key Account Manager
Product Development
Human Resources
General Mgmt
Technical Support.
Marketing
SalesSupport
Product Mgmt
Sales Mgmt
Regional Mgmt
BizDev
Territory Mgmt
3
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

• Understand account requirements/ needs/
  capabilities
• Plan account actions to fix problem PL line
  items
• Target account goals/ accountability for profit
  improvement
• Match strategy to improvement potential

• Tie account team incentives to customer metrics
• Reflect balanced scorecard in account metrics

• Monitor performance against tactical plan
• Hold account team members accountable

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

4
A model for identifying and rolling-up Key
Accounts
Global Key Accounts
National Key Accounts
Regional Key Accounts
Territory Key Accounts
5
Key Account ManagementProcess diagrams
6
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

7
Process Overview
Level 1
2 Key Account Management
3 Territory Management
4 Management Reporting
5 KAM Management and Administration
8
1 - Analyze and Classify Customers
9
1 - Analyze and Classify Customers
Level 2
2.1 Profile Account
1.1 Identify/Add Customer/ Modify
1.2 Analyze Customer Details
1.5 Identify Key Accounts
1.3 Segment Customers
1.4 Validate
KA?
KAs
Non KAs
3.1 Plan Call Activity
3.3 Review Performance
10
1.1 - Identify/Add Customer
Level 3
1.2.1 Enter Data
1.1.4 Determine whether to add
Add?
Yes
No
1.1.5 Management Confirmation
Reject Customer
11
1.2 - Analyze Customer
Level 3
3.3.6 Change Process/Plans
1.3.1 Establish segmentation
1.2.5 Confirm Customer Needs/Objectives)
1.2.2 Historical Review
1.2.3 Potential Review
1.2.4 Needs Analysis
1.2.1 Enter data
1.1.4 Determine whether to add
12
1.3 - Segment Customers
Level 3
13
1.4 - Validate
Level 3
14
1.5 - Identify Key Accounts
Level 3
2.1.1 Assess Accounts Current Situation
1.5.4 Validate selection and criteria
KA?
Yes
No
3.1.1 Collect/Review Customer Information (Territo
ry Management)
15
2 - Key Account Management
16
2 - Key Account Management
Level 2
1.5 Identify Key Accounts
1.2 Analyze Customer Details
17
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 gt
  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

18
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

19
2.1 -Analyze Account
Level 3
1.5.4 Validate Selection and Criteria
Output
Input
2.2.1 Define account strategy

• 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

20
2.1 -Analyze Account
Level 3
1.5.4 Validate Selection and Criteria

• Rank customers by order of importance,
  segmentation
• Develop a map to guide networking
• Consider accounts influence / reputation
• 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

• Identify accounts current situation
• Identify benefits of offering to meet need /
  opportunities

• Develop and maintain account profiles
• Identify process for product approval

2.2.1 Define account strategy
21
2.2 - Set account objectives
Level 3
2.1.4 Complete account profile
2.3.1 Develop action plan
Output
Input

• Account profile
• Company/ Business Unit strategy
• Financial targets

• Customer strategy
• Long- medium -short term
• Customer team

22
2.2 - Set account objectives
Level 3
2.1.4 Complete account profile

• Define end users of products and services
• Establish selling goals

• Identify growth opportunities
• Identify specific product opportunities

• Look for long range opportunities

2.3.1 Develop action plan
23
2.3 - Create account plan
Level 3
2.2.3 Establish account objectives
2.4.1 Execute plan
Output
Input

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

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

24
2.3 - Create account plan
Level 3
2.2.3 Establish account objectives
2.4.1 Execute 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

• Communicate sales approach to team

• Identify growth opportunities
• Identify specific product opportunities

• Integrate marketing strategy / concept

25
2.4 - Execute Account Plan
Level 3
2.3.4 Finalize approve account plans
2.5.1 Measure performance
Output
Input

• Action plans
• Responsibilities
• Resources

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

26
2.4 - Execute Account Plan
Level 3
2.3.4 Finalize approve account plans

• 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
27
2.5 - Evaluate Account Performance
Level 3
2.4.3 Modify account plan
2.1.1 Develop / update account profile 2.3.3 Revie
w and assess account portfolio
1.2.1 Historical Review
Output
Input

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

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

28
2.5 - Evaluate Account Performance
Level 3
2.4.3 Modify account plan

• 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 Revie
w and assess account portfolio
29
3 - Territory Management
30
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
31
3.1 - Plan Call Activity
Level 3
External Sales Information
Internal Sales Information
Financial Information
3.3.4 Individual Sales Effectiveness Assessment
3.2.1 Prepare for call

• Cash sales
• and volume

• Ex-factory data

• Cost
• Revenue
• Profitability

ONGOING
3.1.1 Collect/Review Customer Information
3.1.3 Review Segment Strategies Definitions
3.1.4 Define Call Plan
3.1.5 Schedule Calls
3.1.6 Organize Logistics
3.1.2 Targeting
1.5.4 Validate Selection and Criteria
ONGOING
Marketing and Product Strategy
3.3.6 Change Process/Plans
32
3.2 - Execute Contact
Level 3
3.1.6 Organize Logistics
3.2.4 Match product to needs
3.2.5 Gain commit- ment
3.2.1 Prepare for contact
3.2.2 Open Contact
3.2.3 Understand Needs
3.2.6 Close Contact
3.2.7 Document Contact
3.3.2 Individual analysis of sales performance
data
3.3.4 Individual Sales Effectiveness Assessment
33
3.3 - Review Performance
Level 3
External Sales Information
Internal Sales Information
Financial Information

• Cash sales
• and volume

• Ex-factory data

• 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
PERIODIC
PERIODIC
3.3.5 Understand link between actions and
performance
3.2.7 Document Contact
3.3.6 Change Process/Plans
ONGOING
ONGOING
3.3.4 Individual Sales Force Effectiveness
Assessment
3.3.2 Individual analysis of sales performance
data
3.1.1 Review History and Targets
ONGOING
1.2.1 Historical Review
3.1.4 Define Call Objectives
3.2.1 Prepare for call
34
4 - Management Reporting
35
4 - Management Reporting
Level 2
4.1 Company Information
4.2 Marketplace Information
4.3 Performance Information
4.4 Customer Information
36
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)

37
4.1 - Company Information
Level 3

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

4.1.1 Planning Information

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

4.1.2 Products and Services

• Queries from customers
• ADRs
• Protocol Information
• Different Usage patterns

.1.3 l Information

• 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.)

4.1.4 Marketing Materials

• 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
38
4.2 - Marketplace Information
Level 3

• Gguidelines
• Reimbursement levels
• Budget eligibility

4.2.1 Government Policies

• 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.

4.2.2 Competitor Information

• End user profile
• Treatments
• Research
• Future trends

4.2.3 Information

• Prescribing patterns and trends
• Economic and regulatory influencers

4.2.4 Practice Trends
39
4.3 - Performance Information
Level 3

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

4.3.1 Sales Performance

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

4.3.2 Marketing Performance

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

4.3.4 Financial Performance

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

4.3.5 Performance against plan

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

4.3.6 Incentives Performance
40
4.4 - Customer Information
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

4.4.1 Demographic Information

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

4.4.2 Contact Information

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

4.4.3 Sales 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)

4.5.4 Contact history and plan

• Relationships within account (influencers,
  decision makers, etc.)
• Relationships between account and external
  bodies/individuals
• Relationships to Customers

4.5.5 Relationship Profiles