The value is in the solution
As KAM expertise builds, pharma is heading for a sales transformation, Pfizer’s Alberto Navia-Osorio tells Nick de Cent.
Customers rightly expect far more from key account managers than reps because they are different roles, argues Alberto Navia-Osorio, Account Manager Team Leader for Pfizer. However, the relationship works both ways: KAMs are also entitled to expect much more from customers than reps can from prescribers.
“After a while you become more like a consultant to the customer,” he declares. This longer-term relationship is founded on a win-win outlook focused more on clients and their customers than the rep’s traditional product-oriented approach.
The KAM model demands a much wider perspective than a traditional sales role, encompassing sound product and disease state knowledge as well as understanding of the patient pathway. At a detailed level, this might include a comprehensive understanding of a product’s required storage conditions, such prosaic information as the size of the box, shipment times and payment terms, and also a familiarity with clinical trial data. Furthermore, it requires the capability to interpret financial information that a traditional rep is unlikely to have.
KAMs also bring to the table their experience of working with similar customers, as well as real-world data – both of which can be of genuine benefit to a client. However, there are also dangers in having such a close relationship with customers. Very often, you get asked to help with things that are not related to your company at all. “I always say to my teams: ‘Don’t forget your shared-agenda approach.’
Navia-Osorio emphasizes that KAMs always need to keep in mind the commercial perspective. It seems that Pfizer are doing something right, with the company’s KAMs consistently scoring 9 or 10 in customer surveys.
While KAM is still relatively in its infancy in pharma, there are some players that have understood how to work it well: Navia-Osorio highlights Roche and Novartis as two other well-regarded exponents in the sector. Overall, though, he acknowledges that the quality of KAM interactions is variable across the industry; in addition, individual company reputations may also vary from country to country and across different markets sectors.
Key skills
It takes more than two years to cover all the skills in order to be a real KAM.”
The success of a key account engagement depends on a single point of contact that takes advantage of all the capabilities of the company working in harmony. “You need to know your company very well – both the internal stakeholders and the procedures.”
Unsurprisingly, KAMs require a highly sophisticated skill-set to succeed in such a demanding role. “There is a clear curriculum for KAMs in Pfizer,” Navia-Osorio explains. “It takes more than two years to cover all the skills in order to be a real KAM.”
He highlights four critical skills:
1. The ability to identify useful insights around important drivers for your customers;
2. Project management expertise aligned to the ability to qualify an opportunity – you need to decide whether you can help the customer at the first interview;
3. Internal team-building skills because it is important to be able to work as part of a cross-functional team; and
4. The facility to display leadership without authority. “This is critical but very difficult to learn – it’s the most difficult part for most salespeople.”
Currently based in Rome, Navia-Osorio himself has a cross-functional background, with expertise in sales, marketing, human resources and business strategy. This has inevitably helped him in his KAM role by providing a wide network and understanding of the different business functions.
KAM programs
What kinds of program work best with customers? At the fundamental level, it is vital to fully understand the customer’s needs and, as is the norm with KAM, Pfizer aims to pursue a win-win approach. “I like the word ‘co-create’,” Navia-Osorio says. However, it is impossible to pursue the highest level of engagement with all accounts, so the company offers three levels: for some customers, Pfizer replicates a solution across different accounts; at an intermediate level, it will adapt a program to an individual customer’s needs; and, in certain circumstances, the company will co-create a new program with the customer.
In this context, it is important to be transparent with customers. This is part of the account planning process, Navia-Osorio emphasizes. Indeed, comprehensive account planning is “critical” in his view. At Pfizer, the process is multidisciplinary and takes place on an annual basis with quarterly updates. “It requiresa lot of effort. Customers should be aware of and involved in the process – it’s a partnership, not a commercial approach.”
Compliance
Can the close relationships involved in KAM activities cause compliance problems? There are obviously strong compliance regulations in the United States and increasingly so around the world. “Fortunately, in Europe compliance rules are very clear in terms of what is right to do and what is out of scope.” Navia-Osorio points to the upcoming EU initiative, the EFPIA Code on Disclosure of Transfers of Value from Pharmaceutical Companies to Healthcare Professionals and Healthcare Organisations as being one to look out for. “It’s not a problem to have contacts with providers but transparency is key.”
Interactions with key accounts can be seen as a collaborative exercise, for instance programs on adherence, engagement and referrals. “The objectives must be very clear. You must always be sure you are respecting all the rules when offering solutions. However, activities are audited both inside and outside the company, so compliance shouldn't be an issue.”
The way ahead
For the future, Navia-Osorio sees KAM becoming increasingly professional as the industry becomes better prepared and builds skills, capabilities and experience. In the same way that physicians are rarely simply physicians any more, so pharma salespeople have to embrace a wider range of skills, he stresses.
With resources ever more scarce and companies operating in an environment of lower budgets, pharma has to become creative. In such a competitive market, the differentiator is the solution. “This is the difference the KAM can offer. Most companies will have a very powerful KAM area.”
At the same time, access managers and customer marketing managers will play an enhanced role. “We have to be ready for this. It’s a historic moment; pharma is finally moving forward,” Navia-Osorio concludes.
Pfizer’s Alberto Navia-Osorio will be speaking on KAM at eyeforpharma Barcelona 2015. For more information on his presentation, click here.