By now we are all familiar with the recent past in terms of sales model - Share of voice, coverage and frequency. This model alone is no longer a guarantee for meeting revenue and productivity targets at least for four important reasons:
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Primary care blockbusters are decreasing while growth in speciality products is on the increase and require account based selling model. Oncology will see 50 new products by 2011
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Jumps in primary care targeting improvements have not been significant enough to compensate the lower pipeline
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Government regulations have resulted in an increasing market complexity, managed care control is increasing
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Quantitative pressure on customers are shortening calls and generating access issues
For these four reasons at least, the industry is evolving from a traditional product centric to a customer centric model supported by Customer Relationship Management (CRM) systems. The role of the medical representatives and the definition of the customer are both changing and this is impacting the content of the calls rather than their quantity. Last year key account managers have started to be challenged not only in negotiating the price but on sharing the risk with the hospitals: “If your product is that fantastic, then let’s share the risk. If it works, we will keep it, if it does not work, your company will have to reimburse us”, is becoming a common answer from hospital committees. Are medical representatives prepared to be challenged on sharing the risk? Are we sure that “flash calls” where opening and closing are almost one single step are impacting results?
If quality is a key driver of sales force effectiveness and can make the difference, there is no accurate and reliable key performance indicator (KPI) to measure it, simply because even if everyone is convinced about it, this is almost impossible to scientifically prove that quality is impacting results as it is proven for quantity with response curves.
So we are moving towards quality as a key driver of sales force effectiveness with a field force who is not prepared and without accurate KPIs to measure it. It sounds like an impossible challenge! But these changes are underway globally, with the most emphasis in the advanced markets of the industry.
These companies have moved from mass detailing to individual approaches meeting customer needs through customized and valuable content. Closed loop marketing process is integrating marketing and sales individuals where the customer is at the center of everything they do. Calls are no longer supported by paper based visual aids but interactive communication materials that are not only improving call quality and face time – as long as the medical representatives are well prepared – but ensuring a reliable tracking of quality effectiveness.
Those who will be successful will be the ones managing this important change.