Hand2Hand Solutions

Knowledge. Experience. Results

Key Account Management

Marketing and Sales Excellence

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

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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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Consulting
amit@hand2handsolutions.in
09818995422

www.hand2handsolutions.in

Hand2Hand Solutions
Knowledge. Experience. Results

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