Presentation about SFE metrics - English

1. South America SFE Congress Buenos Aires 2008,October

2. Theory Practice3 years Sales Representative - Field6 months Training Associate - Internal2 years DM - Field2 years SFE Manager - Internal2 years Regional Manager - Field3 years Sr SFE Manager - Internal1 year Sales Force National Manager - Field

3. What is an effective metric? For Sales Area : if metric results are good MORE SALES Answer : When you have a direct correlation between metric and result.A metric must have power to help on decision making process,show direction, reveal diagnostic

4. Traditional sales force effectiveness metrics can lead to poor decisions and may not reveal the truth Example Carlos Grzelak Jr.

5. Effective metrics are available, even in less data-rich markets. Example Carlos Grzelak Jr.

6. Sales process complexity Sales Disruption Call Planning Data Utilization Sales Management Coaching Targeting Compensation Message Frequency Territory Management Training Marketing Programs Meetings Internal Benchmarking Marketing Strategy Alignment Carlos Grzelak Jr.

7. Organizing the Key Elements – Sales Force approach Internal factors Sales Force size/ structure Customers panel composition Internal and External Customer’s satisfaction Resource Allocation Results Call Effectiveness External factors

8. Metrics/tools may help to follow up all steps… Calls by segment Frequency and Coverage Samples by segment Gimmicks by segment Invitations by segment Educational support by segment Incentive Plan

9. Metrics/tools may help to follow up all steps… Internal Customer survey External customer survey SALES

10. Smart Resource Allocation project tackles 4 elements Internal factors Sales Force size/structure Customers panel composition Internal and External Customer’s satisfaction Resource Allocation Results Call Effectiveness External factors

11. New metrics introduced to sales force 5.Rxevolutionbymovingquarters 6.SOM evolutionbymovingquarters 3.Message recall andMessageretention 4.Disruptionlevel Resource Allocation Call Effectiveness Results 1.Calls by segment Frequencyand Coverage 2.Samples,invitations,gimmicks,... by segment

12. 1.Calls by Segment - Frequency and Coverage Frequency: % of MDs getting the desired number of calls in a selected period ( ex: three cycles) MDs point of view is what matters Coverage : % of MDs getting the desired number of calls in one single cycle

13. 1.Calls by Segment - Frequency and Coverage 2 Frequency x Coverage Cycle 1 1 3 4 5 6 7 8 9 10 90% 90% Coverage: Frequency:

14. 1.Calls by Segment - Frequency and Coverage 2 Frequency x Coverage Cycle 2 1 3 4 5 6 7 8 9 10 90% 80% Coverage: Frequency:

15. 1.Calls by Segment - Frequency and Coverage 2 Frequency x Coverage Cycle 3 1 3 4 5 6 7 8 9 10 90% 70% Coverage: Frequency:

19. 1.Calls by Segment - Frequency and Coverage Is there a limit for the number of calls per MD by cycle ? Ideal frequency Rx More callsthannecessary Anadditionalcallgeneratesimpact No impact Calls

24. Sales Rep : planning and organization skills are demanded

25. Vacant sectors are considered (MDs are not being “impacted”)

26. Hiringprocessmustbeaccurate – bankof candidates

27. DSMs must eliminate unnecessary meetings with Sales RepsIt canbeadapted to your business needs – numberofcallsbysegment,period for frequencyevaluation,lessor more rigidrules,... Improvingfrequency = Sales Increase =ROI

29. SmartResourceAllocationdefinition : A › B › C

30. Eachsegmentrequires a different approach

31. Segmentationwasconductedbyproduct (10 promotedproducts)

32. For big eventsor small meetings only A and B MDs are invitedIt dependsonhowsegmentationmatrixwasbuilt. Sometimeseachsegmentmayrequires a differenttypeof material (ex: Behaviour x Potential) Improvedresourceallocation = ROI = Sales increase

33. 3.Message recall and Message retention PM SRs/DMs MD Messageleakage Howmuch(?) Messageleakage Howmuch(?)

35. Sales training is based on delivering the message with consistency

36. Message recall may be conducted – by phone - at least twice a year (1st wave/Baseline and 2nd wave)

37. 30% of recall index is a standard

40. Sales Reps more focused, going straight to the point

41. Product Managers must follow a method before launch new detail pieces ( focus groups and field tests with detail pieces required )

42. A very good way to diagnose the situation and promote adjustments : Sales Rep?Detailpiece?Whatchanges are required to improve message transmission ? What changes are needed to sell more ?Message recall is a veryrichmetric.Behind a high recall normallythere is a highfrequencyand a highmessageretentionlevel. Theonlyway to havebadresultslinked to a highmessage recall is whenthemessage is bad HighMessage Recall = Sales increase = ROI

44. Disruption due to MDs that were changed between Reps

45. Disruption by territory,district,region,whole country

47. Sales Reps turnover

48. Possibility of measuring the impact due to a restructure process *for products with carry over = 80% , it’s estimated that 5-10% of disruption after a restructure impacts sales only by 0,6 to 2% Wheneverythingseems to begoodbutresults do not come up, maybeDisruptionindexmaygiveyouan input. This is a technicalway to measuretheRelationshipfactor,whichcannotbeignored

50. Alignedwithfrequencymeasurement (movingquarter)

51. Individualize strategyby MD according to Rxprofile

52. FocusonRxshare,notnumberofRx

53. A toolwasdelivered to DM allowingmultipleanalysis

55. Alignedwithfrequencymeasurement (movingquarter)

56. Territory SOM is compared to district,regionand country

57. Measured for allpromotedproducts

58. Evolutionand SOM general index is calculatedalso

61. Message recall to beconductedattheendoftheyear

65. Does it increase sales ? YTD 08 Results *Gov. sales **Supplyissues Source:DDD/IMS PreviousPeriod: May/08-Dec/08 YTD 08 : Jan/08– Jul/08

67. Sponsorship is fundamental

68. Strong interaction between Sales and Marketing

69. Management level totally aligned

70. Productivity workshops may help to fine tune