Brilliant 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. At one time, pharmaceutical companies used to look at each other and judge effectiveness based on how big the workforce was, as more volume would undoubtedly lead to enhanced revenue and a more than fruitful rate of return at the bottom line. However, in many respects this approach has led to saturation in the market, even as the market itself changes its characteristics. Today, much more emphasis must be placed on marketability and the promotion of niche products, with an accompanying rise in demand for specific training, rather than the use of a ‘broad paintbrush’ to accomplish everything. 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. 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. 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. 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. More often than not, a goal must not be infinitely achievable, or the sales person could be subconsciously held back as progress is made.

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