Pharmaceutical Sales Management

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To maintain physician access and adapt to the evolving healthcare marketplace, sales teams adopt new tactics and adjust to shifting resource levels. Use this report to explore analysis of the current pharmaceutical sales management landscape and explore metrics focused on sales investment, field activity, staffing, compensation and more. Learn what executives look for in potential reps, and see how they utilize eDetailing to supplement traditional detailing efforts. Implement customer-centric commercial strategies to overcome access challenges, and employ key account managers to open communication channels with a universe of new healthcare decision makers.

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Report Details

Publication Date: Feb 2014
Pages: 195
Chapters: 4
Metrics: 500+
Charts/Graphics: 181

Top Reasons to Buy This Pharmaceutical Sales Management Report

Overcome physician access challenges: There are several options available to sales reps who need to increase the face time they get from physicians.  Although many medical offices are increasingly restricting rep time, some sales forces have rolled out tactics to adjust their visit frequency accordingly, in turn increasing access.  Online tools also provide some benefits to increasing physician access, provided reps do not rely too heavily on them.  The report details sales rep time allocation metrics for managers to measure performance against.  Finally, this report will show sales teams how eDetailing can open communication with physicians that companies may have otherwise missed.

Benchmark cost per rep and cost per detail data: Frequently, a pharmaceutical sales organization’s marching orders are to balance resources and control costs.  This report not only provides detailed cost-per-rep and cost-per-detail benchmarks, but also guidance for keeping spending down.  The report showcases data for primary care, specialty and hospital sales forces, emphasizing that sales groups must receive the necessary budgets that allow them to push revenue higher.

Transition to a customer-centric pharmaceutical sales management strategy: Transforming a sales organization from a product- to a customer-centric model sometimes requires a paradigm shift in strategy.  Learn how drug companies that have adopted the customer-centric model coordinate more effectively with hospital stakeholders, including medical directors and executives, nurses and supply reps.  Finally, the report details best practices for increasing and improving relationships with customers.

You may also be interested in CEIConnect: The Lifesciences Industry’s On-Demand Research Resource as well as our individual sales research reports.

Excerpt from Pharmaceutical Sales Management

The healthcare marketplace has changed as a result of regulations and technological advancement, and so have healthcare providers’ needs and position. Pharmaceutical companies, in turn, have had to evolve their organizational structure and strategy to meet this new environment. Sales teams, in particular, have needed a new approach as their staffing numbers have decreased and physicians are closing their doors to pharma or leaving primary care.

Shrinking numbers of sales reps have also caused companies to rethink their hiring practices. Today, companies place more value on candidates’ entrepreneurial qualities than on the slick and tenacious rep of the past. These more business oriented reps can leverage full-service packages alongside products. Additionally, they use customer relationship management (CRM) tools to their full advantage. Tools such as closed-loop marketing and physician feedback have helped launch some pharma companies into a new age where the product itself is secondary to improved patient outcomes.

Table of Contents

9              Executive Summary

12           Methodology and Definitions

13           Life Science Sales Forces: Five Principles for Success

24           Maximizing Customer Contact with Physician Access Strategies

25           Adapting Targeting and Detailing Practices to Overcome Physician Access Challenges

48           Allocating Time Effectively Across Multiple Activities and Products

74           Implement New Strategies to Drive Sales Team Performance and Improve Customer Satisfaction

84           Securing Resources For Sales Force Success

87           Benchmarking Sales Force Metrics: Costs Per Rep and Costs Per Detail

115         Benchmarking Sales Team Metrics: Training Costs and Duration

130         Field Management Compensation Levels

141         Staffing Efficient Field Forces In Today’s Sales Environment

143         Proper Staffing Levels Key to Field Sales Strategy

171         Harnessing Emerging Trends To Transform Sales Forces

172         Focus Sales Efforts on Customer Needs As Well As Product Benefits

191         Use Key Account Management to Expand Traction Beyond Primary Care Physicians

Charts and Graphics

9              Executive Summary

12           Methodology and Definitions

13           Life Science Sales Forces: Five Principles for Success

14           Figure E.1: Percentage of Companies with a Customer-Centric Strategy in Place (US)

15           Figure E.2: Percentage of Companies with a Customer-Centric Strategy in Place (EU)

18           Figure E.3: Percentage of Details Conducted via Internet or Mobile Technology at Companies Utilizing These Channels (US)

19           Figure E.4: Annual Investments in eDetailing (US)

21           Figure E.5: Average Cost per Rep (US Primary Care)

21           Figure E.6: Average Cost per Rep (US Specialty)

22           Figure E.7: Average Cost per Rep (US Hospital)

24           Maximizing Customer Contact with Physician Access Strategies

25           Adapting Targeting and Detailing Practices to Overcome Physician Access Challenges

30           Figure 1.1: Communication Methods Reps Use to Contact Targets (US Primary Care)

30           Figure 1.2: Communication Methods Reps Use to Contact Targets (US Specialty)

31           Figure 1.3: Communication Methods Reps Use to Contact Targets (US Hospital)

31           Figure 1.4: Communication Methods Reps Use to Contact Targets (EU)

33           Figure 1.5: Percentage of Details Done via Internet or Mobile Technology at Companies Utilizing These Channels (US)

34           Figure 1.6: Number of Monthly Details Done via Internet or Mobile Technology at Companies Utilizing These Channels (US)

35           Figure 1.7: Types of eDetails Performed by Companies Using eDetailing (US)

36           Figure 1.8: Annual Investments in eDetailing (US)

37           Figure 1.9: Percentage of eDetailing Investment Allocated by Types of eDetails (US)

38           Figure 1.10: Delivery Methodologies for Self-Guided eDetails (US)

40           Figure 1.11: Effectiveness Ratings of eDetailing by Type

41           Figure 1.12: Most Effective Product Lifecycle Stage for eDetailing (US)

42           Figure 1.13: Prescriber Levels Targeted with eDetailing (US)

43           Figure 1.14: Headcounts of Dedicated Virtual Sales Rep Teams (US)

44           Figure 1.15: Budgets of Dedicated Virtual Sales Rep Teams (US)

45           Figure 1.16: Investment per Virtual Rep on Dedicated Teams (US)

46           Figure 1.17: Number of Details Attempted by Virtual Sales Reps per Day (US)

48           Allocating Time Effectively Across Multiple Activities and Products

49           Figure 1.18: Percentage of Field Reps’ Time Allocated to Specific Activities at Top 10 and Top 25 Companies (US Primary Care)

50           Figure 1.19: Percentage of Field Reps’ Time Allocated to Specific Activities at Top 50 Companies (US Primary Care)

50           Figure 1.20: Percentage of Field Reps’ Time Spent on Specific Activities at Companies Within Top 50 (US Specialty)

51           Figure 1.21: Percentage of Field Reps’ Time Spent on Specific Activities at Companies Outside Top 50 (US Specialty)

51           Figure 1.22: Field Reps’ Time Allocation at Top 10 and Top 50 Companies (US Hospital)

52           Figure 1.23: Field Reps’ Time Allocation at Small and Medical Device Companies (US Hospital)

52           Figure 1.24: Field Reps’ Time Allocation (EU Primary Care and Specialty)

53           Figure 1.25: Field Reps’ Time Allocation (EU Hospital)

54           Figure 1.26: Percentage of Reps’ Selling Time Spent on Product Tier (US Primary Care)

55           Figure 1.27: Percentage of Reps’ Selling Time Spent on Product Tier (US Specialty)

55           Figure 1.28: Percentage of Reps’ Selling Time Spent on Product Tier (US Hospital)

56           Figure 1.29: Percentage of Reps’ Selling Time Spent on Product Tier (EU)

58           Figure 1.30: Average Number of Target Visits Attempted per Day (US Primary Care)

58           Figure 1.31: Average Number of Target Visits Attempted per Day (US Specialty)

59           Figure 1.32: Average Number of Target Visits Attempted per Day (US Hospital)

59           Figure 1.33: Average Number of Target Visits Attempted per Day (EU)

61           Figure 1.34: Percentage of Visits on Which Reps Are Able to Detail Physicians (US Primary Care)

61           Figure 1.35: Percentage of Visits on Which Reps Are Able to Detail Physicians (US Specialty)

62           Figure 1.36: Percentage of Visits on Which Reps Are Able to Detail Physicians (US Hospital)

62           Figure 1.37: Percentage of Visits on Which Reps Get to Detail Physicians (EU)

64           Figure 1.38: Average Number of Minutes Reps Spend with Physicians per Visit (US Primary Care)

64           Figure 1.39: Average Number of Minutes Reps Spend with Physicians per Visit (US Specialty)

65           Figure 1.40: Average Number of Minutes Reps Spend with Physicians per Visit (US Hospital)

65           Figure 1.41: Average Number of Minutes Reps Spend with Physicians per Visit (EU)

67           Figure 1.42: Average Number of Lunch and Learns Conducted per Month with High-Level Prescribers (US Primary Care)

67           Figure 1.43: Average Number of Lunch and Learns Conducted per Month with Mid-Level Prescribers (US Primary Care)

68           Figure 1.44: Average Number of Lunch and Learns Conducted per Month with Low-Level Prescriber (US Primary Care)

69           Figure 1.45: Average Number of Lunch and Learns Conducted per Month with High-Level Prescribers (US Specialty)

70           Figure 1.46 Average Number of Lunch and Learns Conducted per Month with Mid-Level Prescribers (US Specialty)

70           Figure 1.47: Average Number of Lunch and Learns Conducted per Month with Low-Level Prescribers (US Specialty)

71           Figure 1.48: Average Number of Lunch and Learns Conducted per Month with High Level Prescribers (EU)

72           Figure 1.49: Average Number of Lunch and Learns Conducted per Month with Mid-Level Prescribers (EU)

72           Figure 1.50: Average Number of Lunch and Learns Conducted per Month with Low-Level Prescribers (EU)

74           Implement New Strategies to Drive Sales Team Performance and Improve Customer Satisfaction

75           Figure 1.51: Performance Measurement Methodologies (US)

76           Figure 1.52: Channels for Gathering Physician Satisfaction Feedback (US)

77           Figure 1.53: Sales Rep Qualities Measured as a Part of Physician Satisfaction Feedback(US)

79           Figure 1.54: Percentage of Companies Deploying a Closed-Loop Marketing System (US)

79           Figure 1.55: Percentage of Companies Deploying a Closed-Loop Marketing System (EU)

80           Figure 1.56: Percentage of Overall Targets Tracked Under the Closed-Loop Marketing System (US)

84           Securing Resources for Sales Force Success

85           Figure 2.1: Total Investment in Sales Force Operations (US Primary Care)

85           Figure 2.2: Total Investment in Sales Force Operations (US Specialty)

86           Figure 2.3: Total Investment in Sales Force Operations (US Hospital)

87           Benchmarking Sales Force Metrics: Costs Per Rep and Costs Per Detail

88           Figure 2.4: Average Cost per Rep (US Primary Care)

90           Figure 2.5: Compensation Levels for Newly Hired Reps (US Primary Care)

90           Figure 2.6: Compensation Levels for Average-Performing Reps (US Primary Care)

91           Figure 2.7: Compensation Levels for High-Performing Reps (US Primary Care)

91           Figure 2.8: Percentage of Compensation by Type for Newly Hired Reps (US Primary Care)

92           Figure 2.9: Percentage of Compensation by Type for Average-Performing Reps (US Primary Care)

92           Figure 2.10: Percentage of Compensation by Type for High-Performing Reps (US Primary Care)

93           Figure 2.11: Average Cost per Rep (US Specialty)

94           Figure 2.12: Compensation Levels for Newly Hired Reps (US Specialty)

95           Figure 2.13: Compensation Levels for Average-Performing Reps (US Specialty)

95           Figure 2.14: Compensation Levels for High-Performing Reps (US Specialty)

96           Figure 2.15: Percentage of Compensation by Type for Newly Hired Reps (US Specialty)

96           Figure 2.16: Percentage of Compensation by Type for Average-Performing Sales Reps (US Specialty)

97           Figure 2.17: Percentage of Compensation by Type for High-Performing Sales Reps (US Specialty)

98           Figure 2.18: Average Cost per Rep (US Hospital)

99           Figure 2.19: Compensation Levels for Newly Hired Reps (US Hospital)

100         Figure 2.20: Compensation Levels for Average-Performing Sales Reps (US Hospital)

100         Figure 2.21: Compensation Levels for High-Performing Reps (US Hospital)

101         Figure 2.22: Percentage of Compensation by Type for Newly Hired Reps (US Hospital)

101         Figure 2.23: Percentage of Compensation by Type for Average-Performing Reps (US Hospital)

102         Figure 2.24: Percentage of Compensation by Type for High-Performing Reps (US Hospital)

103         Figure 2.25: Average Cost per Rep (EU)

105         Figure 2.26: Average Cost per Detail with Samples (US Primary Care)

106         Figure 2.27: Average Cost per Detail Without Samples (US Primary Care)

107         Figure 2.28: Average Cost per Detail with Samples (US Specialty)

108         Figure 2.29: Average Cost per Detail Without Samples (US Specialty)

109         Figure 2.30: Average Cost per Detail with Samples (US Hospital)

110         Figure 2.31: Average Cost per Detail Without Samples (US Hospital)

111         Figure 2.32: Average Cost per Detail with Samples (EU)

111         Figure 2.33: Average Cost per Detail Without Samples (EU)

113         Figure 2.34: Percentage of Sales Budget Allocated to Specific Items (US Primary Care)

113         Figure 2.35: Percentage of Sales Budget Allocated to Specific Items (US Specialty)

114         Figure 2.36: Percentage of Sales Budget Allocated to Specific Items (US Hospital)

114         Figure 2.37: Percentage of Sales Budget Allocated to Specific Items (EU)

115         Benchmarking Sales Team Metrics: Training Costs and Duration

115         Figure 2.38: Costs of Training New Sales Reps (US Primary Care)

116         Figure 2.39: Costs of Training New Sales Reps (US Specialty)

116         Figure 2.40: Costs of Training New Sales Reps (US Hospital)

117         Figure 2.41: Training Hours for New Sales Reps by Methodology (US Primary Care)

118         Figure 2.42: Training Hours for New Sales Reps by Methodology (US Specialty)

118         Figure 2.43: Training Hours for New Sales Reps by Methodology (US Hospital)

119         Figure 2.44: Training Hours for New Sales Reps by Methodology (EU)

120         Figure 2.45: Costs of Ongoing Training for Sales Reps (US Primary Care)

121         Figure 2.46: Costs of Ongoing Training for Sales Reps (US Specialty)

121         Figure 2.47: Costs of Ongoing Training for Sales Reps (US Hospital)

122         Figure 2.48: Ongoing Training Hours for Sales Reps by Methodology (US Primary Care)

123         Figure 2.49: Ongoing Training Hours for Sales Reps by Methodology (US Specialty)

123         Figure 2.50: Ongoing Training Hours for Sales Reps by Methodology (US Hospital)

124         Figure 2.51: Ongoing Training Hours for Sales Reps by Methodology (EU)

125         Figure 2.52: Types of CRM Systems Deployed (US)

126         Figure 2.53: Types of CRM Systems Deployed (EU)

127         Figure 2.54: Initial Investment in CRM Systems (US)

128         Figure 2.55: Initial Investment in CRM Systems (EU)

129         Figure 2.56: Annual Investment in Maintaining/Upgrading CRM Systems (US)

130         Field Management Compensation Levels

131         Figure 2.57: Compensation Levels for Newly Hired District Managers (US Primary Care)

131         Figure 2.58: Compensation Levels for Newly Hired District Managers (US Specialty)

132         Figure 2.59: Compensation Levels for Newly Hired District Managers (US Hospital)

132         Figure 2.60: Compensation Levels for Average-Performing District Managers (US Primary Care)

133         Figure 2.61: Compensation Levels for Average-Performing District Managers (US Specialty)

133         Figure 2.62: Compensation Levels for Average-Performing District Managers (US Hospital)

134         Figure 2.63: Compensation Levels for High-Performing District Managers (US Primary Care)

134         Figure 2.64: Compensation Levels for High-Performing District Managers (US Specialty)

135         Figure 2.65: Compensation Levels for High-Performing District Managers (US Hospital)

136         Figure 2.66: Compensation Levels for Newly Hired Regional Managers (US Primary Care)

137         Figure 2.67: Compensation Levels for Newly Hired Regional Managers (US Specialty)

137         Figure 2.68: Compensation Levels for Newly Hired Regional Managers (US Hospital)

138         Figure 2.69: Compensation Levels for Average-Performing Regional Managers (US Hospital)

138         Figure 2.70: Compensation Levels for Average-Performing Regional Managers (US Specialty)

139         Figure 2.71: Compensation Levels for Average-Performing Regional Managers (US Primary Care)

139         Figure 2.72: Compensation Levels for High-Performing Regional Managers (US Primary Care)

140         Figure 2.73: Compensation Levels for High-Performing Regional Managers (US Specialty)

140         Figure 2.74: Compensation Levels for High-Performing Regional Managers (US Hospital)

141         Staffing Efficient Field Forces in Today’s Sales Environment

143         Proper Staffing Levels Key to Field Sales Strategy

144         Figure 3.1: Number of Field Reps in the Sales Force (US Primary Care)

145         Figure 3.2: Number of Field Reps in the Sales Force (US Specialty)

146         Figure 3.3: Number of Field Reps in the Sales Force (US Hospital)

147         Figure 3.4: Number of Field Reps in the Sales Force (EU)

149         Figure 3.5: Actual Average Number of Reps Managed per District Manager (US Primary Care)

149         Figure 3.6: Ideal Average Number of Reps Managed per District Manager (US Primary Care)

150         Figure 3.7: Actual Average Number of Reps Managed per District Manager (US Specialty)

151         Figure 3.8: Ideal Average Number of Reps Managed per District Manager (US Specialty)

152         Figure 3.9: Actual Average Number of Reps Managed per District Manager (US Hospital)

153         Figure 3.10: Ideal Average Number of Reps Managed per District Manager (US Hospital)

155         Figure 3.12: Ideal Average Number of Reps Managed per District Manager (EU)

155         Figure 3.11: Actual Average Number of Reps Managed per District Manager (EU)

156         Figure 3.13: Actual Average Number of District Managers Managed per Regional Manager (US Primary Care)

157         Figure 3.14: Ideal Average Number of District Managers Managed per Regional Manager (US Primary Care)

158         Figure 3.15: Actual Average Number of District Managers Managed per Regional Manager (US Specialty)

159         Figure 3.16: Ideal Average Number of District Managers Managed per Regional Manager (US Specialty)

160         Figure 3.17: Actual Average Number of District Managers Managed per Regional Manager (US Hospital)

161         Figure 3.18: Ideal Average Number of District Managers Managed per Regional Manager (US Hospital)

162         Figure 3.19: Actual Average Number of District Managers Managed per Regional Manager (EU)

163         Figure 3.20: Ideal Average Number of District Managers Managed per Regional Manager (EU)

164         Figure 3.21: Rep Mirroring: Average Number of Different Reps Calling on Targets by Type (US Primary Care)

165         Figure 3.22: Rep Mirroring: Average Number of Different Reps Calling on Targets by Type (US   Specialty)

166         Figure 3.23: Rep Mirroring: Average Number of Different Reps Calling on Targets by Type (US Hospital)

167         Figure 3.24: Rep Mirroring: Average Number of Different Reps Calling on Targets by Type (EU)

169         Figure 3.25: Average Number of Products Reps Sell (US Primary Care)

169         Figure 3.26: Average Number of Products Reps Sell (US Specialty)

170         Figure 3.27: Average Number of Products Reps Sell (US Hospital)

170         Figure 3.28: Average Number of Products Reps Sell (EU)

171         Harnessing Emerging Trends to Transform Sales Forces

172         Focus Sales Efforts on Customer Needs As well As Product Benefits

175         Figure 4.1: Percentage of Companies with a Customer-Centric Strategy in Place (US)

175         Figure 4.2: Percentage of Companies with a Customer-Centric Strategy in Place (EU)

178         Figure 4.3: Investments Made to Move Toward a Customer-Centric Approach (US)

179         Figure 4.4: Tools Used as a Part of Customer-Centric Sales Approaches (US)

180         Figure 4.5: Tools Used as a Part of Customer-Centric Sales Approaches (EU)

184         Figure 4.6: Information Shaping Sales Teams’ Customer-Centric Approach (US)

185         Figure 4.7: Information Shaping Sales Teams’ Customer Centric Approach (EU)

186         Figure 4.8: Ways in Which Targets’ Profiles Change the Materials that Go into the Field (US)

187         Figure 4.9: Ways in Which Targets’ Profiles Change the Materials that Go into the Field (EU)

191         Use Key Account Management to Expand Traction Beyond Primary Care Physicians