The Challenge

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.

Our Solution

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 Impact:

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.


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