Helpful Considerations On Sales Force Effectiveness And Strategy Development

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April 30, 2010

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. Sales force effectiveness is coming under scrutiny like never before, as it is realised that an oversized sales force could not only be neutralising, it could be detrimental to the success of the company.

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. The value of the new contract must be assessed in terms of its strategic goal and logistical impact, quite apart from its economic benefit. It’s quite possible that a profitable sale, when viewed narrowly, could be far from as beneficial when all the other factors are taken into consideration.

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. Remember that correct motivation involves far more than just the establishment and availability of monetary bonuses. 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 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. Size the sales force correctly, so the territories are adequately serviced and the company’s voice is heard to best effect. How many sales calls does the salesperson make on any given day and is an inordinate amount of time spent travelling or on other non-productive activities?

Every moment that a salesperson spends with the client, whether detailing or otherwise, should be optimised as part of a revised approach to 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.

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