Reinventing Pharmaceutical Sales Forces

Summary

Innovate your sales practices to reach and influence targets

More Pharmaceutical Sales Information:

National Association of Pharmaceutical Sales Representatives

The "more is better" methodology of selling is dead. The Wall Street Journal now predicts that the number of pharmaceutical sales reps in the US will drop to 70,000 by the year 2015. This is a tremendous change from the boom of the 1990s and early 2000s, when the total number of reps exceeded 100,000.

While some companies began adapting a few years ago, other companies now find themselves well behind. For those companies stuck in the past, reducing sales force mirroring, creating more personal relationships with targets, and uncovering new ways to reach physicians are the orders of the day. The companies that will excel will be those that innovate now and find new avenues for connecting with targets and that develop relationships where doctors actually call on reps for information.

Cutting Edge Information's Reinventing Pharmaceutical Sales Forces analyzes the current state of the pharmaceutical sales arena and reveals how innovative leaders are winning in a time when most companies find themselves in trouble.

The report makes its case with metrics and methodologies for preparing pharma sales forces to compete now and into the future. The report covers three main areas:

• Incorporating eDetailing and Closed Loop Marketing - Examines some of the newest ways sales forces are reaching physicians and meeting targets' specific needs.
• New Age Field Force Tactics - Studies the "new look" field force, which values one-on-one relationships between doctor and rep, fewer reps per district manager, a more technologically equipped team and increased rep accountability.
• Structures, Budgets and Sales Staff Compensation - Analyzes the sales force investment levels and resource allocations of today. The chapter also reveals compensation levels of newly hired, average and high-performing reps, district managers and regional managers.

500+ Metrics

90+ Charts and Diagrams

Metrics in the Report:

Chapter 1: Incorporating eDetailing and Closed-Loop Marketing

eDetailing

• eDetailing program investment
• Percentage of eDetailing investment outsourced
• Percentage of companies measuring ROI on eDetailing
• Percentage of total eDetails delivered by type
• Percentage of the eDetailing budget dedicated to each type
• Total dollars spent by type of eDetail
• Rating the effectiveness of eDetailing types
• Ideal lifecycle stage for eDetailing campaigns
• Level of prescribers targeted by eDetailing
• Dedicated eDetailing teams
• Dedicated eDetailing team annual budgets
• Investment per Dedicated eDetailing team member
• eDetailing types performed by dedicated eDetailing teams
• Percentage of dedicated eDetailing teams' budgets spent by eDetailing type
• eDetailing delivery methodology for dedicated eDetailing teams

Customer Relationship Management (CRM) and Closed-Loop Marketing Systems

• Percentage of companies using a CRM system
• Percentage of companies using a closed-loop marketing system
• Percentage of companies investigating the installation of closed-loop marketing systems
• Investment in closed-loop marketing systems

Chapter 2: New Age Field Force Tactics

• Overall changes to district manager to rep ratios over the past 12 to 24 months
• Impact of sales force contraction on rep to district manager ratios
• Impact of sales force expansion on rep to district manager ratios
• Average number of reps targeting each level of physician - broken down by primary care sales and pecialty/hospital sales
• Mirroring for top- , mid- and low-level targets - primary care sales and specialty/hospital sales
• Shifts in the average number of target visits attempted daily by sales reps over the last 12 to 24 months
• Impact of contraction on the number of visits attempted and drugs carried -- primary reps and specialty/hospital reps
• Impact of the January 2009 changes to the PhRMA Code

Maximizing Sales Rep Success

• Metrics gauge the success rate and amount of time -- by percentage and by average number of minutes -- that primary care reps and specialty/hospital reps are able to spend detailing physicians. Current year data and 2007 data are shown.
• Using total office calls to find key influencers

Chapter 3: Structures, Budgets and Sales Staff Compensation

Sales Force Contraction Data

• Percentage by which expanding sales forces grew over the last 12 to 24 months
• Percentage by which contracting sales forces shrank over the last 12 to 24 months
• Sales force expansion/contraction planned over the next 12 to 24 months
• Sales force realignments

Sales Force Investments

• Total annual sales force investment
• Total annual sales force investment per rep
• Average annual cost - per primary care sales rep and per specialty/hospital rep
• Average resource allocation -- per primary care sales force and per specialty/hospital sales force
• Cost per detail -- primary care sales and specialty/hospital sales

Sales Staff Compensation

Section contains compensation data for primary care and specialty/hospital reps and district managers and regional managers across the performance spectrum.

Sample Content

The following excerpt is taken from Chapter 1, "Incorporating eDetailing and Closed-Loop Marketing," section 2: "Customer Relationship Management and Closed-Loop Marketing System." The full report provides full details on emerging sales tools.

With the pharmaceutical sales arms race now officially over and even reversing course, companies that help their reps stand out among those left in the field will earn the types of close-knit relationships with doctors for which everyone yearns. Sales leaders must deploy a knowledgeable, engaging and well-equipped force.

One way that companies can ensure that their reps stand out from the crowd is by installing and running customer relationship management systems as well as closed-loop marketing systems.

CRM Systems

Many companies have customer relationship management systems in place. As shown in Figure 1.22, 59.5% [data shown in full report] of companies surveyed now own CRM tools. CRM systems help companies identify which doctors to call on, how often to call on them and when it is time to visit them. CRM systems also allow pharmaceutical companies to capture all points of communication between customers and the company, including when doctors phone call centers, receive marketing materials, visit Web content or seek out help at conventions.

With this data, companies can manage all channels of contact with the target and connect them. So, for instance, if a doctor goes to a convention and requests something from a company representative at the convention, that person would upload the request into the CRM and the CRM system would send that doctors rep an email informing them of the request.

With CRM systems in place at virtually all of the top pharmaceutical companies and many of the mid-level companies, adding a closed-loop marketing system to coincide with a CRM application will bring the next generation of service and improve sales forces' efforts tremendously....

The following excerpt is taken from Chapter 2, "New Age Field Force Tactics," section 2, "Maximizing Sales Rep Success." The full report examines strategies and tactics of the "new look" field force.

Best Practices for In-Office Interactions

Cutting Edge Information analysts have culled the following best practices for getting in the door and extending access time to physicians. These strategies come from executives from the most successful and proactive sales functions at leading companies.

Assist Physicians with Managed Care Activities

One of the most interesting trends emerging in the field today is the cross-training of reps on managed care and market access issues. With this knowledge, reps are assisting doctors to get reimbursement for their patients and navigate what can be confusing formularies of their clients. Reps also relay the latest market access changes regularly to make doctors aware of evolving market access situations.

Physicians focus on getting the right medicines to their patients and do not have enough time to keep track of every formulary change across the numerous insurance plans of their patients. Sales reps can - and should - keep their targets up-to-date on changes that affect their brands. This added level of service is something that the next generation of sales rep will have to do to stay competitive.

At one interviewed company, this service helped maintain market share when one of the company's products dropped a tier on a major formulary. At this company, sales reps preemptively communicated the change to targets but also told physicians that the company was providing rebates to cover the difference in patient costs. This assured doctors that leaving their patients on the same treatment regimen would not hurt customers' pocketbooks.

In the future, as the US moves more and more toward socialized medicine, reps will need to understand and communicate managed care and market access information....

Contents

• Executive Summary
  • Methodology And Definitions
  • Profiled Companies
  • Reinventing Pharmaceutical Sales Forces: Five Principles For Success
• Incorporating Edetailing And Closed-Loop Marketing
  • Edetailing
  • Customer Relationship Management And Closed Loop Marketing Systems
• New Age Field Force Tactics
  • Maximizing Sales Rep Success
• Structures, Budgets And Sales Staff Compensation
  • Sales Force Contraction Data
  • Sales Force Investments
  • Sales Staff Compensation
• Executive Summary
  • Figure E.1: Impact Of New Field Force Tactics On Average Time Reps Get With
  • Physicians (In Minutes)
  • Figure E.2: Average Annual Cost Per Primary Care Sales Rep
  • Figure E.3: Average Annual Cost Per Specialty/Hospital Sales Rep
• Incorporating Edetailing And Closed-Loop Marketing
  • Edetailing
  • Figure 1.1: Edetailing Program Investment
  • Figure 1.2: Percentage Of Edetailing Investment Outsourced
  • Figure 1.3: Edetailing Dollars Spent On Outsourced Activities
  • Figure 1.4: Percentage Of Companies Measuring Roi On Edetailing
  • Figure 1.5: Percentage Of Total Edetails Delivered By Type
  • Figure 1.6: Percentage Of The Edetailing Budget Dedicated To Each Type
  • Of Edetail Performed
  • Figure 1.7: Total Dollars Spent By Type Of Edetail
  • Figure 1.8: Rating The Effectiveness Of Edetailing Types
  • Figure 1.9: Edetailing Delivery Methodology
  • Figure 1.10: Percentage Of Time That Reps Who Edetail Spend Edetailing
  • Figure 1.11: Number Of Edetails Performed By Reps Monthly
  • Figure 1.12: Ideal Lifecycle Stage For Edetailing Campaigns
  • Figure 1.13: Level Of Prescribers Targeted By Edetailing
  • Figure 1.14: Dedicated Edetailing Teams
  • Figure 1.15: Dedicated Edetailing Team Annual Budgets
  • Figure 1.16: Dedicated Edetailing Teams' Sizes
  • Figure 1.17: Average Number Of Edetails Performed By Dedicated Edetailing
  • Team Members Monthly
  • Figure 1.18: Investment Per Dedicated Edetailing Team Member
  • Figure 1.19: Edetailing Types Performed By Dedicated Edetailing Teams
  • Figure 1.20: Percentage Of Dedicated Edetailing Teams' Budgets Spent
  • By Edetailing Type
  • Figure 1.21: Edetailing Delivery Methodology For Dedicated Edetailing Teams
  • Customer Relationship Management And Closed Loop Marketing Systems
  • Figure 1.22: Percentage Of Companies Using A Crm System
  • Figure 1.23: Percentage Of Companies Using A Closed-Loop Marketing System
  • Figure 1.24: Percentage Of Companies Investigating The Installation Of Closed-Loop
  • Marketing Systems
  • Figure 1.25: Investment In Closed-Loop Marketing Systems
  • Figure 1.26: Outsourcing Of Closed-Loop Marketing Systems
• New Age Field Force Tactics
  • Figure 2.1: Overall Changes To District Manager To Rep Ratios Over The
  • Last 12 To 24 Months
  • Figure 2.2: Impact Of Sales Force Contraction On Rep To District Manager Ratios
  • Figure 2.3: Impact Of Sales Force Expansion On Rep To District Manager Ratios
  • Figure 2.4: Average Number Of Reps Targeting Each Level Of Physician
  • (Primary Care Sales)
  • Figure 2.5: Average Number Of Reps Targeting Each Level Of Physician
  • (Specialty/Hospital Sales)
  • Figure 2.6: Mirroring For Top Targets (Primary Care Sales)
  • Figure 2.7: Reduction In Mirroring For Top Targets (Primary Care Sales)
  • Figure 2.8: Mirroring For Top Targets (Specialty/Hospital Sales)
  • Figure 2.9: Mirroring For Mid-Level Targets (Primary Care Sales)
  • Figure 2.10: Mirroring For Low-Level Targets (Primary Care Sales)
  • Figure 2.11: Mirroring For Mid-Level Targets (Specialty/Hospital Sales)
  • Figure 2.12: Mirroring For Low-Level Targets (Specialty/Hospital Sales)
  • Figure 2.13: Shifts In The Average Number Of Target Visits Attempted Daily By
  • Sales Reps Over The Last 12 To 24 Months
  • Figure 2.14: Impact Of Contraction On The Average Number Of Target Visits
  • Attempted Daily By Sales Reps
  • Figure 2.15: Average Number Of Daily Target Visits Attempted By Primary Care
  • Sales Reps
  • Figure 2.16: Average Number Of Daily Target Visits Attempted By Specialty/Hospital
  • Sales Reps
  • Figure 2.17: Shift In The Number Of Drugs Carried By Primary Care Sales Reps
  • Figure 2.18: Shift In The Number Of Drugs Carried By Specialty/Hospital Sales Reps
  • Figure 2.19: Impact Of Sales Force Contraction On The Number Of Drugs Carried
  • By Primary Care Sales Reps
  • Figure 2.20: Impact Of Sales Force Contraction On The Number Of Drugs Carried
  • By Specialty/Hospital Sales Reps
  • Figure 2.21: Primary Care Sales Reps' Time Resource Allocation
  • Figure 2.22: Primary Care Sales Reps' Time Resource Allocation (2007)
  • Figure 2.23: Specialty/Hospital Sales Reps' Time Resource Allocation
  • Figure 2.24: Specialty/Hospital Sales Reps' Time Resource Allocation (2007)
  • Figure 2.25: Impact Of The January 2009 Changes To The Phrma Code
  • Figure 2.26: Impact Of Emerging Expense Reporting Requirements
  • Figure 2.27: Success Rate Of Primary Care Sales Reps: Percentage Of The
  • Time Reps Get To Detail Physicians Face-To-Face
• Maximizing Sales Rep Success
  • Figure 2.28: Success Rate Of Specialty/Hospital Sales Reps: Percentage Of The Time
  • Reps Get To Detail Physicians Face-To-Face
  • Figure 2.29: Success Rate Of Primary Care Sales Reps: Percentage Of The Time
  • Reps Get To Detail Physicians Face-To-Face (2007)
  • Figure 2.30: Success Rate Of Specialty/Hospital Sales Reps: Percentage Of The Time
  • Reps Get To Detail Physicians Face-To-Face (2007)
  • Figure 2.31: Success Rate Of Primary Care Reps: Average Number Of Minutes
  • Reps Get With Targets
  • Figure 2.32: Success Rate Of Specialty/Hospital Sales Reps: Average Number Of
  • Minutes Reps Get With Targets
  • Figure 2.33: Success Rate Of Primary Care Reps: Average Number Of Minutes
  • Reps Get With Targets (2007)
  • Figure 2.34: Success Rate Of Specialty/Hospital Sales Reps: Average Number Of
  • Minutes Reps Get With Targets (2007)
  • Figure 2.35: Using Total Office Calls To Find Key Influencers
• Structures, Budgets And Sales Staff Compensation
  • Figure 3.1: Sales Force Expansion/Contraction Over The Last 12 To 24 Months
• Sales Force Contraction Data
  • Figure 3.2: Percentage By Which Expanding Sales Forces Grew Over The
  • Last 12 To 24 Months
  • Figure 3.3: Percentage By Which Contracting Sales Forces Shrank Over The
  • Last 12 To 24 Months
  • Figure 3.4: Sales Force Expansion/Contraction Planned Over The Next 12 To 24 Months
  • Figure 3.5: Sales Force Realignments
  • Figure 3.6: Total Annual Sales Force Investment
• Sales Force Investments
  • Figure 3.7: Total Annual Sales Force Investment Per Rep
  • Figure 3.8: Average Annual Cost Per Primary Care Sales Rep
  • Figure 3.9: Average Annual Cost Per Specialty/Hospital Sales Rep
  • Figure 3.10: Average Primary Care Sales Force Resource Allocation
  • Figure 3.11: Average Specialty/Hospital Sales Force Resource Allocation
  • Figure 3.12: Cost Per Detail (Primary Care Sales)
  • Figure 3.13: Cost Per Detail (Specialty/Hospital Sales)
• Sales Staff Compensation
  • Figure 3.14: Newly Hired Primary Care Sales Rep Compensation
  • Figure 3.15: Average Primary Care Sales Rep Compensation
  • Figure 3.16: High Performing Primary Care Sales Rep Compensation
  • Figure 3.17: Newly Hired Specialty/Hospital Sales Rep Compensation
  • Figure 3.18: Average Specialty/Hospital Sales Rep Compensation
  • Figure 3.19: High Performing Specialty/Hospital Sales Rep Compensation
  • Figure 3.20: Newly Hired Primary Care District Manager Compensation
  • Figure 3.21: Average Primary Care District Manager Compensation
  • Figure 3.22: High Performing Primary Care District Manager Compensation
  • Figure 3.23: Newly Hired Specialty/Hospital Sales District Manager Compensation
  • Figure 3.24: Average Specialty/Hospital Sales District Manager Compensation
  • Figure 3.25: High Performing Specialty/Hospital Sales District Manager Compensation
  • Figure 3.26: Newly Hired Primary Care Regional Manager Compensation
  • Figure 3.27: Average Primary Care Regional Manager Compensation
  • Figure 3.28: High Performing Primary Care Regional Manager Compensation
  • Figure 3.29: Newly Hired Specialty/Hospital Sales Regional Manager Compensation
  • Figure 3.30: Average Specialty/Hospital Sales Regional Manager Compensation
  • Figure 3.31: High Performing Specialty/Hospital Sales Regional Manager Compensation