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. 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. 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.
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. 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. Sometimes, a profitable sale “on paper” might turn into a very different outcome, when other factors are assessed.
These days there is not so much difference between success and failure, as margins are so thin and therefore sales force effectiveness is a highly important metric. 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. 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 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. 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?
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 Managing Director of L2L Consulting, specialising in enabling pharmaceutical companies to achieve new heights of productivity and performance, throughout all levels of management and revenue generating activities.