In a recent report, eyeforpharma advised that pharma still has yet to develop effective new models for measuring Key Account Management KAM performance.
Several years in to full blown KAM development initiatives, organizations are still struggling to put operational metrics around what KAMs do; despite the reality that the importance of their role continues to increase as a key component of commercial strategy.
At first glance, the problem appears to be not knowing for sure what elements of KAM activities and responsibilities can and should be measured. The good news here is that there are a growing number of examples and best practices for KAM performance measurement that can be leveraged from outside and now, within the industry.
KAM organizations are starting to figure it out; The ability to deeply understand the “ecosystem” around a key account, repeat access to senior stakeholders, the amount of time spent with customers, stronger opportunity prioritization logic, pipeline and sales growth, the outcome of dependent objectives, etc.
From Clarity’s perspective, the place to start however, is not with any one metric or key performance indicator; it is with the development and clear articulation of the new or “upgraded” set of very specific expectations for the KAM role itself and the long-term effect you see the KAM having on creating competitive differentiation for your company and value for your key accounts. Among the questions worth considering BEFORE jumping into metrics…..
- In what ways are we looking for the relationship “footprint” with our key accounts to expand by virtue of the KAM role? Is it to go higher in the organization? Broader? Both?
- Which types of stakeholders, decision makers and/or influncers do we want our KAMs calling on that they have not yet engaged with?
- What new categories of conversations do we want our KAMs to have with an expanded set of stakeholders? What are the possible value propositions our KAM teams can represent and how well has the organization prepared itself to help KAMs succeed around new points of value?
As we all know, what gets measured, gets managed!
Our ”3 Tenets of KAM Accountability”;
1: Having the right KAM metrics model
2: Developing “modern day” KPIs
3: Tying measurement back to customer education might help