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Advice You - Don't Let Your Sales Management Slip - In Good Times Or Bad
If your business is to both grow and be resilient in the face of whatever might come around the corner in the future continual prospecting for new customers is simply essential. The conventional wisdom is that every business needs to have its sales force spent 20% of their time prospecting that's one day a wee
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
k!
So how do you judge whether your sales people are doing a good job – just on performance against budget? I find the Sales Management Matrix model a very useful tool to view your sales people from the helicopter.
The y-axis represents prospecting activity and the x-axis performance against budget - be that
So how do you judge whether your sales people are doing a good job – just on performance against budget? I find the Sales Management Matrix model a very useful tool to view your sales people from the helicopter.
The y-axis represents prospecting activity and the x-axis performance against budget - be that
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
based on orders achieved or on contribution. Your salespeople are then characterised into four types - Junior, Star, Cow and Dog.
Let me explain some more:
A new salesperson will always start off as a Junior since they have no customers and everything they do is, by definition therefore, prospecting.
Let me explain some more:
A new salesperson will always start off as a Junior since they have no customers and everything they do is, by definition therefore, prospecting.
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
As they develop and secure customers you expect, and need, then to move across to Star - indeed it is where you want a majority of your sales force to be located. Not only are Stars spending significant time prospecting they are also operating ahead of budget.
Now we get to the critical part –
Stars ca
Now we get to the critical part –
Stars ca
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
fall to Cows very quickly!
It may simply be that the Star gets complacent - times are good, the business is humming, we're riding the wave of a buoyant market or it may be that the Star's customers are demanding more and more of their time to service the account and slowly but surely the prospecting fal
It may simply be that the Star gets complacent - times are good, the business is humming, we're riding the wave of a buoyant market or it may be that the Star's customers are demanding more and more of their time to service the account and slowly but surely the prospecting fal
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ls off and the Star becomes a cash Cow - probably acting more like a key account manager than a salesperson.
This is dangerous since inevitably that above budget performance will become more and more dependent upon less and less customers over time.
So what then happens? We just need one of two of those maj
This is dangerous since inevitably that above budget performance will become more and more dependent upon less and less customers over time.
So what then happens? We just need one of two of those maj
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
or customers to disappear – say they've re-engineered their product, they've moved production to China, the new strategy is to focus on a different area of their service activity.
Whatever it is suddenly the Cow has become a Dog - not only are they not prospecting for new customers they are now operating at t
Whatever it is suddenly the Cow has become a Dog - not only are they not prospecting for new customers they are now operating at t
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
e below budget level of performance from the ones they have.
It is perhaps easy to see how these dynamics can have happened in a business that is fallen on more difficult times - or where a business, like one of my Clients, has in the past never really had to sell and where any selling that was done was merel
It is perhaps easy to see how these dynamics can have happened in a business that is fallen on more difficult times - or where a business, like one of my Clients, has in the past never really had to sell and where any selling that was done was merel
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
y an adjunct to somebody's principal job function. In these circumstances there is a need to almost start from square one and ensure that there is a proper salesforce in place, that they have had specific sales training and that they recognise the need to aspire to Star status.
I was recently talking to a ba
I was recently talking to a ba
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
nker who told me that traditionally his bond traders were also the salesforce and, not surprisingly, prospecting was something they rarely did -- and indeed probably do not have the skills to do. His solution was to recruit two "Business Development Executive's" to become the real salesforce whilst the bond t
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
aders in effect fulfilled the key account management function.
I was recently in Dubai where simply every business is riding the crest of a wave and growing at rates of 30, 40 or over 50% per annum. In this climate there is a serious danger of all your salesforce moving into Cow territory.
So why is that a p
I was recently in Dubai where simply every business is riding the crest of a wave and growing at rates of 30, 40 or over 50% per annum. In this climate there is a serious danger of all your salesforce moving into Cow territory.
So why is that a p
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
roblem? Why should we worry about prospecting when the businesses flooding in any way? Well I believe you must. Firstly to avoid complacency and to ensure that you have robust practices in place in preparation for any potential downturns in the future. More importantly, however, this is the opportunity for
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
you to choose your customers - to work at getting rid of the ones you don't want and work hard at getting the ones you do want for the future. Only by doing this will your business become not only more efficient, more profitable and easier to run but most importantly it will be fun to run again.
For you as th
For you as th
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
e CEO riding this tiger you're simply worn out by the frenetic activity - the constant need to recruit - the constant need to increase capacity of the business. There is simply no time at present to think about the future.
You know what?
You must find the time
- you must find time to get in your
You know what?
You must find the time
- you must find time to get in your
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
elicopter and have a look at your salespeople and how they fit on the Sales Management Matrix and then take action.
Here’s your check list:
Juniors (High prospecting, Low profit):
Things to look for:
High Call Rate (even though low profit)
Growing Quote rate
Growing Funnel
Thin
Here’s your check list:
Juniors (High prospecting, Low profit):
Things to look for:
High Call Rate (even though low profit)
Growing Quote rate
Growing Funnel
Thin
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
gs to look out for:
Low Call rate
Static Funnel
Low quote rate
Stars (High prospecting, High profit):
Things to look for:
High Call Rate
Many Funnel Opportunities
Growing Funnel
High Quote rate
Focus on new customers
Things to look out for:
Over conf
Low Call rate
Static Funnel
Low quote rate
Stars (High prospecting, High profit):
Things to look for:
High Call Rate
Many Funnel Opportunities
Growing Funnel
High Quote rate
Focus on new customers
Things to look out for:
Over conf
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
idence
Poor Paperwork
Cannot be told /managed
Cows (Low prospecting, High profit):
Things to look for:
Funnel opportunities come in on a regular basis
Significant time spent planning Sales Approach
Significant focus on building existing customers
Things to look out for:<
Poor Paperwork
Cannot be told /managed
Cows (Low prospecting, High profit):
Things to look for:
Funnel opportunities come in on a regular basis
Significant time spent planning Sales Approach
Significant focus on building existing customers
Things to look out for:<
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
r>
Less time actually selling (face to face time)
Reduction in new customers
Reduction in Call rate
Arrogance/ I have arrived , cannot be told attitude
Reliance on getting the “one big order” for next year
Dogs (Low prospecting, Low profit):
Things to look for (if the Sales Execu
Less time actually selling (face to face time)
Reduction in new customers
Reduction in Call rate
Arrogance/ I have arrived , cannot be told attitude
Reliance on getting the “one big order” for next year
Dogs (Low prospecting, Low profit):
Things to look for (if the Sales Execu
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
tive is to continue with the company ):
Able to have a reality check (I am below budget and have low opportunities)
Willingness to accept “things much change”
Increase in call rate
Willing to delegate some account responsibilities to free up more new “call time”
Willing to accept help<
Able to have a reality check (I am below budget and have low opportunities)
Willingness to accept “things much change”
Increase in call rate
Willing to delegate some account responsibilities to free up more new “call time”
Willing to accept help<
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
br>
Things to look out for (Sales Executive may not continue):
Complaints about things they have no control over
Constant returning to accounts they have been previously successful with
Poor attitude - aggressive, secretive, subversive
Poor call rate , declining funnel
Poor quote rat
Things to look out for (Sales Executive may not continue):
Complaints about things they have no control over
Constant returning to accounts they have been previously successful with
Poor attitude - aggressive, secretive, subversive
Poor call rate , declining funnel
Poor quote rat
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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