March 4, 2010

Valuable Ideas For Determining If An Account Really Is Key

If the pharmaceutical company designates one of its clients as a key account, what criteria is it using to determine this? All too often, this prognosis is based on an analysis of financial data alone and as such, it can be said that the entire account management philosophy is based on a poor foundation. Why not look at this from the opposite view, as if you were a designated key account? This client is clearly able to see if the association is based on a dollar value and is not based on strategic importance or the provision of services over and above the standard. No matter how hard the executive tries at an interpersonal level, it is not possible to mask how a pharmaceutical company designates the true meaning of this relationship.

The key client understands why it should be designated as “key,” whether that is purely to do with revenue levels or not or whether, as more likely, it is a product of strategic positioning as well. As such, it will be looking for a special level of attention from the company and an element of leadership in the industry.

A relationship between a company and its client must be a two-way street. Where competition is rife, options are always available and the company must ensure that it is always doing more than could be expected of it. Within the very make up of a company, all staff should be infused with this philosophy, but this can be a difficult position to achieve. This is why a pharmaceutical consulting firm remains a good investment for the company. The pharmaceutical consultants can often speak from a position of experience and strength and may well directly understand the requirements of the client better than the company. As such, the consultants can help the training of staff at all levels with regard to the intricacies necessary when dealing with clients.

A typical client these days is looking for a pro active company engagement, interested in any ways possible to improve a relationship and will be looking for privileged information and data to help them in their day-to-day business. This will not necessarily directly result in an increase in revenues, and if the front-line executives are only motivated by bonuses according to revenue figures, then they may not be correctly incentivised to handle the client the right way.

Remember that these situations are often far more subtle than this would suggest, and even the most sophisticated incentivisation schemes can fail to meet their targets. These types of situations call for a lot of experience and a dedicated approach to the handling of each and every key account.

Hidden costs are often involved and the pharmaceutical company must understand that it should be very sparing in its designation of “key” account status. Always read between the lines and assess how strategically important the relationship could be, far above bottom-line figures and revenues. These days, pharma consulting firms can help reveal these points of reason and can in certain circumstances help the company to understand that a particular client may not in fact represent the company’s best interests.

Alan Gillies is the CEO of L2L Consulting, a cutting-edge pharma consultancy firm which specialises in optimising productivity and performance within international companies by applying tailored organisational strategies.


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