Pharma and KAM: The role of objectives and metrics
A new eyeforpharma report suggests pharma still has not transitioned to new measures that fully reflect the objectives and outcomes of KAM programs
One consequence of the shift to key account management in pharmaceutical sales and marketing has been to challenge received wisdom about how performance in the field should be defined and measured.
The eyeforpharma report on Pharma Key Account Management Report 2011-2012 shows that pharma is still hasn't shifted to metrics that can accurately track the outcomes of KAM programs.
Surveys of the pharma community revealed, for example, that only 14.3% of respondents were routinely using patient metrics.
Yet understanding patient-level trends is crucial if companies are to achieve genuine synergy between KAM programs and local health system needs.
Just 20% of respondents had metrics implemented to measure changes in contact advocacy ratings, the surveys found, while only 33.3% were tracking changes in usage pathways.
The Pharma Key Account Management Report 2011-2012 is based on more than 50 interviews with KAM executives.
These include 24 in-depth interviews with senior pharmaceutical executives and stakeholders as well as surveys of the pharma community involving 956 and 100 respondents respectively.
Metrics needed
There was general consensus among respondents that metrics are needed to support six key performance areas in KAM programs: valid direction of objectives and actions in account plans; quality of engagement with customers; sales progress; tactics that work; value delivered from a customer perspective; and results of mutual objectives.
Ultimately, though, a company's ability to measure performance outcomes according to more complex KAM criteria will depend on having the right attitude and aims going in.
"It doesn't matter who or what you are, or what you have on your business card," comments James Bailey, UK regional business manager for Astellas.
"If you have a clear sense of purpose and clear reason for being there, which you communicate, you will get further."
The Pharma Key Account Management Report 2011-2012 identifies a number of hurdles to measuring KAM value, both practical and technical.
They start with instilling attitudinal change company-wide and from the top down.
That can be particularly challenging where senior management have been brought up on a culture of ‘calls per day'.
"We are still of the belief that we need a nod and a handshake to get sales, until proved otherwise," comments Lars Werner, Leo Pharma's business unit director, dermatology for Denmark and Sweden.
As many as 71.4% of survey respondents said their companies continued to set, measure and report on call rates, while 28.6% measured call rates but generally used the data only when a sales issue arose.
Flexible timelines
KAM measures also need to be flexible about timelines for program/product uptake or return on investment.
This may be a function of different priorities in local health economies, how mature the product is, or brand objectives, such as wanting to get a compliance program properly bedded in before driving sales.
"The difficulty with KAM is not predicting the outcome-for example, setting the objective-the difficulty is setting ‘when'," comments Lee Gittings, commercial effectiveness manager at Pfizer in the UK.
KAM is a more nuanced approach to customers than traditional share-of-voice platforms, with their emphasis on trumping the competition through sheer weight of numbers.
A key account may be less about immediate sales gains than building a mutually beneficial relationship in which a package of products and services is used to achieve long-term health outcomes tailored to a local health economy or particular disease area.
KAM measurements must therefore be able to capture performance across a wide range of parameters, consistent with the multiple strategic aims involved in selecting and targeting key customers.
Among those highlighted in the report are long-term health outcomes; key milestones in account plans; value parameters, such as levels of patient education; patient-management objectives, such as drug adherence; customer, insight, engagement and satisfaction; and comparisons among accounts.
For exclusive business insight into and analysis of KAM, download eyeforpharma's Pharma Key Account Management Report 2011-2012.
For all the latest KAM trends, join the sector's other key players at Key Account Management (KAM) USA on September 13-14 in Philadelphia,Engage with the new NHS on September 27-28 in London, Emerging Markets Commercial Excellence on November 15-16 in Berlin, Key Account Management Europe on November 22 in London, and the 11th annual Marketing Europe in November.
For more KAM articles, see Key account management: A special report.