Superb Considerations On Sales Force Effectiveness And Strategy Development
It’s no longer acceptable for a pharmaceutical company to operate according to the mantra that “bigger is better,” based on the concept that the more people engaged in the marketplace, the better 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. However, in many respects this approach has led to saturation in the market, even as the market itself changes its characteristics. 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.
In our current economy, pharmaceutical sales training must have two distinct components — the all-important product education and the dispensation of latest, cutting-edge techniques and approaches, to ensure that the salesperson is able to survive in this new era. The salesperson should not forget that the ultimate goal is to win, but it’s no good accepting a signature on a sales contract at whatever 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. Knowledgeable consultants understand how important this element of pharmaceutical sales training is and how they should focus on high levels of morale, productive engagement and less waste among the sales force. Motivation is a very delicate subject and is far from just the provision of relevant financial bonuses for the salesperson. All individuals are different and certain people in the sales force may be more motivated by another style of reward, rather than viewing financial compensation as the be-all and end-all. 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 can have a high impact on not only volume, but thin margins and high costs, so individual performance can have a ‘knock on’ effect in other areas. To start off with, the organisation should look at where it is right now, what factors it is using to measure success and how these factors, or metrics, may or may not be detrimental. Size the sales force correctly, so the territories are adequately serviced and the company’s voice is heard to best effect. 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 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.
