Great Guidelines On Sales Force Effectiveness And Strategy Development

Maybe for the first time, the pharmaceutical company can no longer depend on the phrase “bigger is better,” as it once was the case that the more people who heard the message, the greater the return. There was a time when pharmaceutical companies used to challenge each other based on the size of their workforce and there was an assumption that such a volume would equal adequate revenue and a rate of return that would satisfy the corporate accountant. All this approach resulted in was market saturation and this occurred even as the market was reinventing itself, anyway. There is more emphasis now on “niche” products and marketability and as such there is more demand for dedicated training and focus, rather than a blanket approach to the issue. As we come to the stark realisation that sales force effectiveness is far more important than sales force size, we realise that if we don’t take action, such inefficiency could prove highly detrimental.

These days, pharmaceutical sales training falls into two definite categories — education relating to the product itself and technical training in the area of sales and marketing technique, with the emphasis on the latest cutting-edge approaches. While the salesperson must always be focused on “winning,” it is not acceptable to approach the art of landing a sales contract at any cost. Rather, a new contract value is also reliant on its position in terms of logistical benefit and strategy, quite apart from financial measurements. Sometimes, a profitable sale “on paper” might turn into a very different outcome, when other factors are assessed.

With margins so narrow, the difference between success and failure so thin, sales force effectiveness is one of the most important metrics an organisation can study. Experienced consultants should be engaged to help in this facet of pharmaceutical sales training, to increase productivity, cut expenditure and boost morale among the sales force. Motivation is a very delicate subject and is far from just the provision of relevant financial bonuses for the salesperson. Indeed, sometimes financial compensation is not a primary driver and the organisation must be able to determine what really pushes each individual on the sales force. Be careful not to set a goal that is deemed to be relatively easy to accomplish, as a salesperson might subconsciously “throttle back” as significant progress is accomplished.

Sales force effectiveness impacts sales volume, related expenditure and profit margins, so poor performance in any one area can have far-reaching implications within the others. An organisation can start by assessing its current situation, looking at the metrics used to determine success or otherwise and how these very metrics may, by themselves, be contributory to the problem. Correct sizing of the sales force is so important, with territorial allocation and parameters such as “share of voice” optimised. Make sure that the salesperson has neither too few, nor too many sales calls scheduled in any one day and cut back on non-productive activities, such as excess travelling, where at all possible.

Whether engaged in detailing or not, every single moment that the salesperson spends with a professional should be optimised and this should be a cornerstone of key account management training.

Alan Gillies is the Director of L2L Consulting, an elite pharmaceutical consultancy firm which specialises in Strategy Development and Implementation Excellence for prestigious multi-national organisations.

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