Valuable Pointers On The Real Metric Behind Customer Contribution
Looking at the issue of key account management designation, we need to focus on the customer contribution to the metric. A pharmaceutical consultant must impress upon senior management that traditional measures used to define a client’s contribution are no longer adequate. In the days when money seemed to flow a lot more freely and the business world was far less complex, management decision-makers could often refer to the monthly sales volume, or market share when considering how important the particular client was to the overall mix. Quite simply, the more money that came through this particular client pipeline, the more money in terms of time, effort and resources could be placed into the pot by the pharmaceutical company, to make sure that that client was likely to stay around.
Whenever customer relationship marketing comes under consideration, we learn from pharmaceutical marketing training that key account management is just one of several major areas that we need to focus on. While considering the management of key accounts, it’s important to analyse the customer portfolio, consider the lifetime value potential, an increasingly more important metric that should determine whether the life cycle is likely linked to a particular product, trend or other value. A pharmaceutical consultancy knows only too well that key account management can only be successful if an “appropriate” relationship is developed and that in this particular field, one size most certainly does not fit all.
When it comes to customer contribution, this can often be rather difficult to quantify. Does the customer represent a strategic ally for the company? This is far from a straightforward analysis, as industrial politics could determine that a particular customer be designated as “key,” even though they may be far from one of the leading contributors to the overall financial pot. In terms of lobbying or other methods of tangible or intangible support, it could be well worthwhile for the company to elevate this particular client to a pedestal, alongside those who may be contributing a great deal more in financial terms.
Pharmaceutical marketing training must be able to recognise the diverse contributions that each and every client makes and how rather subtle elements could translate into potential benefits for the company. The pharmaceutical consultant might even have to engage in a certain amount of psychological analysis, training those who are on the front-line to adequately interpret the finer details associated with these accounts.
By some estimation, almost 2/3 of pharmaceutical companies in the market today still consider key account management to be largely ruled by sales volume. This is where a good pharmaceutical consultancy will step in, bringing education to the line and helping to educate representatives for the task ahead. It is more and more difficult to communicate effectively with a professional in the field, so the company must become much more focused on the finer details, when it comes to managing its existing client portfolio. It’s no longer acceptable to use a broad brush when it comes to pharmaceutical marketing training, as specific attention has to be paid to colouring in the finer detail, as the world of key account management is reborn.
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.











