A pharmaceutical sales force’s practice of calling on low-volume accounts was inconsistent with the company’s new customer segmentation strategy and increased the cost to serve customers.
We advised the client to:
- Change the sales approach from a product distribution to a consultative selling model,
- Build and expand a telesales group to efficiently cover smaller volume accounts at a reduced cost,
- Address territory performance issues by requiring sales managers to coach and develop talent capable of consultative selling or replace reps unable to make the transition, and
- Design an incentive plan providing greater rewards for selling to target prospects, penetrating and expanding key account sales and increasing target customer retention and satisfaction.
The company aligned sales compensation to support its sales and marketing strategy, growth plan, and account management objectives. As a result, total sales increased by 5% over the prior year. New sales to prospects in the top two segments climbed by 24%, helping to lower the company’s cost to serve.
ORGANIZATIONAL EFFECTIVENESS: Clear roles with aligned performance management and rewards systems define the “rules of engagement” for people working together to fulfill the organization’s mission.