Useful Ideas For Determining If An Account Really Is Key
Monday, March 8th, 2010If the pharmaceutical company designates one of its clients as a key account, what criteria is it using to determine this? If this decision is based simply on financial data, then it is likely that the company’s entire account management philosophy is flawed. Why not look at this from the opposite view, as if you were a designated key account? What if the client looks at the association on the basis of dollar values alone and believes that it is not based on the provision of high-quality services and on the establishment of strategic importance? 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. This client will expect a certain level of attention from the company and will be looking for leadership positioning in the industry, as part and parcel of the agreement to do business in the first place.
Always maintain a two way association between the company and the client. Remember that there are always options available and as such, therefore, the company must go above and beyond what would ordinarily be expected. This requires a philosophical integration through all staff levels and this can be sometimes difficult to achieve. This is why a pharmaceutical consulting firm remains a good investment for the company. Due to the amount of experience that they have built up, pharmaceutical consultants can be really knowledgeable and can even understand a client’s requirements better than the company itself. Consultants should be engaged to help train staff at all levels, to bring them up to speed with the necessary intricacies of dealing with clients.
For example, a client will often be looking for the company to be proactive, to be always looking for ways to improve the relationship and to help the client act on data and information that they already have. 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. A lot of experience is called for in this situation and each key account must be handled carefully and with precision.
The pharmaceutical company must understand that there are sometimes hidden costs involved in handling these accounts and the designation of “key” should not be given easily. 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.