L2L Group

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.

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.

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 off pharma 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. 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 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. 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.