If 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. Look at it from the point of view of 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.
Understand that a key client knows why it should be designated as key and that this should not be only related to revenue levels, but be viewed from a position 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.
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. 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. 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. 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.
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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